Meaning of Electronic Commerce

Sec 2(44) Of CGST Act defines “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

Meaning of Electronic Commerce Operator

Sec 2(45) of CGST Act deifnes “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

Levy for Electronic Commerce Operator

Sec 9(5) of CGST Act provides that the Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of 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 supplier liable for paying the tax in relation to the supply of such services:

Provided that 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:

Provided further that 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.

Restriction for Composition Dealer

Sec 10(2)(d) of CGST Act provides that composition dealer should not be engaged in making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52

Mandatory Registration

Sec 24 of CGST Act provides the following person are liable for compulsory registration irrespective of aggregate turnover :-

(ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52

(x) every electronic commerce operator;

Special Provisions

Sec 52 of CGST Act provides every electronic commerce operator, not being an agent, shall collect an amount at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

Issue

I am a chartered accountant who provides online services like income tax return filing through my own website. Since I am providing services over digital or electronic network, it will be qualified as electronic commerce service. Also I owns the website for electronic commerce, I will be qualified as an electronic commerce operator.

So should all the provisions applicable to electronic commerce operator will apply to me?

Friends in this digital world, most of the businessman//professionals have their own website. So don’t you believe it is a real harshness for us?

It is still unanswered, if any one have other thought regarding this, please post.

Click here to know how to fill trans1 gst

Author Bio

Qualification: CA in Practice
Company: D S R V & CO LLP
Location: Gurgaon, Haryana, IN
Member Since: 04 May 2017 | Total Posts: 4

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4 responses to “GST on e-commerce / online Services Provided by CAs?”

  1. CA. Nayan Jain says:

    Yes, In my view if read legal definition of electronic commerce operator as it is then definition includes words ‘Owns’ so in that case you shall be required to take registration read with Section 24(X).

    If the Section 24(X) provides that every electronic commerce operator who are required to collect tax at source under section 52, whether or not separately registered under this act shall be required to registered (In line of Section 24(vi)) read with Section 52 (……….of the net value of
    taxable supplies made through it by ‘Other suppliers’ where the consideration……….) then you will not be require to be mandatory registered under this act however you are electronic commerce operator.

    If u have any more or other view reach me at gstcornor@gmail.com.

  2. N H GAJRIA says:

    I DOUBT WHETHER CA WOULD BE COVERED IN E-COMMERCE AS FILING OF THE RETURN OF INCOME ARE NOT THE TYPE OF SERVICES WHICH THE LEGISLATURE WOULD HAVE THOUGHT OF COVERAGE IN E-COMMERCE. PLEASE DONT THINK OF BRIGHT IDEAS FOR OVERCOMING OF THE PROBLEMS BEFORE THEIR ARISING.

  3. VINOD MITTAL says:

    I think he may not be regd with electronic commerce services, but he is proving services like filing on income tax and other returns, advertisement is a side buissness through website. i think he is lible for regd in GST.

  4. Pradeep Kumar Sharma says:

    No, you are not registered under electronic commerce operator. You are doing only advertisement through website. You are not providing platform for filing the return.

    Electronic commerce operator provides only platform for supply goods or services.

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