GST and Electronic Commerce Operator

Model GST Act has described an ‘electronic commerce operator’ as any person who owns, operates or manages the digital or electronic facility or platform for electronic commerce.

The Central or a State Government may, on the recommendation of the Council, by notification, specify categories of services the tax on which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the person liable for paying the tax in relation to the supply of such services:

Here ‘electronic commerce’ means supply of goods and/or services including digital products over digital or electronic network;

Registration:

Every electronic commerce operator, irrespective of their turnover exceeds threshold limit or not of Rupees Twenty Lakh shall obtain registration.

Place of Business

Where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax.

Where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.

TCS:

Every electronic commerce operator shall collect an amount calculated at the rate of one percent of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator.

Operator will deposit the collected amount with the account of the appropriate government within ten days after the end of such calendar month and fill a return, as may be prescribed.

The supplier will be eligible to claim the credit of the deducted amount and required to submit a return by mentioning the details.

Details so furnished by the Operator and Supplier will be matched and discrepancy, if any, will be communicated to both.

The term “Net value of taxable supplies” here means:

the aggregate value of monthly taxable supplies of goods or services, other than services notified under sub-section (4) of section 8, made during any month by all registered taxable persons through the operator                              ………………..

Less: the aggregate value of taxable supplies returned to the suppliers during the said month………

However, no TCS are to be collected,  where the consideration with respect to supplies are not to be collected by the operator.

Annual Return:

Every electronic commerce operator, like others, shall furnish an annual return for every financial year electronically in such form and in such manner as may be prescribed on or before the thirty-first day of December following the end of such financial year.

Categories of E-Services not covered:

Online retailers who supply goods/services on their own behalf are not covered under the definition of electronic commerce operator.

Records:

Every operator of warehouse or godown or any other place used for storage of goods irrespective shall maintain records of consigner, consignee and other relevant details of the goods.