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GST- Decoding the meaning and taxability of e-commerce operator .
GST- Decoding the meaning and taxability of e-commerce operator .
In this article, we will discuss certain points relating to e-commerce operator in GST. So guys lets first understand who is an electronic commerce operator. An Electronic Commerce Operator a person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also, a person providing any information or any other services incidental to or in connection with such supply of goods and services through electronic platform would be considered as an Operator. A person supplying goods/services on his own account ,however would not be considered as an Operator.
Let’s understand the above with the help of an examples-
- Myntra and snapdeal are considered as e-commerce Operators because they are facilitating actual suppliers e.g., Adidas to supply goods through their platform (website/App) to normal customers.
- Myntra and snapdeal will not be considered as e-commerce if they are supplying goods/services under their own For simplicity let’s assume-If Myntra starts selling clothes under its own brand then it will not be considered as e-commerce operator.
- For other websites say Shoppers stop supplying clothes and other articles through its own website would not be considered as an e-commerce operator for the purposes of this provision.
Threshold limit for registration of e-commerce operator under GST –
Schedule-V states that the threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them.
That is for existing Operator have to apply for registration with in 30 days from appointed day. For new Operator they have to obtain registration within 30 days of commencement of their business, If commenced after the appointed day.
Concept of TCS for e-commerce operator under GST –
The e-commerce operator is required to collect (i.e. deduct) an amount out of the consideration paid or payable to the actual supplier of goods or services in respect of supplies of goods and / or services made through such operator. The amount so deducted/collected is called as Tax Collection at Source (TCS).
Illutration-
If Adidas sells T-shirt through myntra to customer for say Rs. 1,00,000, then myntra will deduct TCS @1% though sales made through it i.e., Rs. 1,000.
Time of deduction of TCS by the e-commerce operator –
The timings for such collection/deduction are earlier of the two events:
- the time of credit of any amount to the account of the actual supplier of goods and / or services
- the time of payment of any amount in cash or by any other mode to such supplier.
Such TCS shall be submitted by the e-commerce operator within 10 days of beginning of next month.
Threshold limit for registration by supplier of goods/ services to registration of e-commerce operator under GST –
No threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them. That is required to be registered from day one.
