E-Commerce GST Applicability

E-Commerce GST Applicability

E-commerce Operator:

1)Section 2(45):- An e-commerce operator : is a person who owns, operates or manages digital or electronic facility or platform for electronic commerce. 

2) Section 2(44) Electronic Commerce: “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

Levy & Collections of Tax:-section 9(5) of CGST ACT 2017

(5) 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.

Have To Insert any notificatioin Issued by govt in this regard

Notification 14/2017-Central Tax (Rate) dated 28 June, 2017 specifies that ‘ecommerce operator’ is liable to pay tax ‘as if he is the supplier liable to pay tax’ and lists the following:

“services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;”

  1. services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under clause (v) of section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said Central Goods and Services Tax Act.


Section 24 of CGST Act 2017:-

  1. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––( Compulsory registration):-

(i) persons making any inter-State taxable supply;

(iv) person who are required to pay tax under sub-section (5) of section 9;

  1. 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;
  2. x) every electronic commerce operator;:-

Section 52:- Collection of Tax at source:

  1. (1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated 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.Explanation.––For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month


Press information bureau Regarding the postponement of provision relating to TDS section 51 and TCS section 52 of CGST/SGST Act 2017:-

With the objective of ensuring smooth rollout of GST and taking into account the feedback received from the trade and industry regarding the provisions of deduction of tax at Source under Section 51 of the CGST / SGST Act 2017 and collection of tax at source under Section 52 of the CGST / SGST Act 2017, the following has been decided :-

The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later.

Persons who will be liable to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date the respective sections are brought in force.

The persons who were liable to be registered under clause (ix) of Section 24 of the CGST / SGST Act, 2017 (as they were supplying goods or services through electronic commerce operator who is required to collect tax at source under Section 52) will not be liable to register till the provision of Tax Collection at Source is brought under force.

About CA.Pankaj Kumar Mishra ACA , ISC (Mathematics) ,MCOM
CA Pankaj Kumar Mishra ( ACA, M-com, B-Com(Computer Science), ISC( Mathematics)) is an Associate Member of Institute of Chartered Accountant of India. He is passionate towards sharing his knowledge of taxation among the students and aspirants of professional bodies like ICAI, ICSI, and ICWAI and also with various management Institute as visiting faculty. He has been a visiting faculty of the Institute of Cost Accountants of India. Professionally CA Pankaj Kumar Mishra is practicing chartered Accountant in the areas of both direct and indirect taxation. His practice areas includes advisory service on the matters of Tax Compliances Management, International Taxation management, Business structuring, Foreign exchange laws including foreign trade policy. He also has rich experience in handling complex issues of taxation matters and income tax proceedings with the Income Tax Authorities and conducting due diligence exercises to facilitate business acquisitions, strategic business management and various joints ventures among national and international bodies. This website is designed with the view to make the viewer understand the concept of various laws with in-depth analysis over the subject , scientific approach with pictorial representation of provisions of laws.