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Impact of GST on E-Commerce Operator

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Sakshi Shah

E-Commerce Operator
E-Commerce Supplier
GST
GSTR-8
TCS

As per the GST Act, an Electronic Commerce Operator i.e. E-Commerce Operator is a person who owns, operates and manages a digital or electronic platform for running an e-commerce business. Electronic Commerce i.e. E-Commerce means the supply of goods or services across an electronic or digital network. The impact of GST on e-commerce operator is summarised in the table below:

Provision   Impact
Conditions A person owns, operates or manages an e-commerce platform (e-commerce operator). Suppliers sell goods or services through the e-commerce platform (e-commerce supplier). Payment on sales is collected by the e-commerce operator.
Registration Compulsory Registration irrespective of the threshold limit of Rs.20 lacs (Rs.10 lacs for special category states)
Taxability Liable to collect TCS (Tax Collected at Source) on the payment made to e-commerce supplier
TCS Rate Inter-state supplies – IGST @ 1%Intra-state supplies – CGST @ 0.5% and SGST @ 0.5%
Payment of TCS Liable to deposit TCS with the GST department within 10 days from the end of the month in which the TCS was collected
GST Return GSTR-8 – to be filed on or before the 10th of the next month GSTR-9B – to be filed on or before 31st December of the next financial year
What is TCS under GST?
Read about Tax Collected at Source, applicability of TCS and TCS rates
Read More
What is TCS under GST?
Read about Tax Collected at Source, applicability of TCS and TCS rates
Read More

FAQs

Is it mandatory for e-commerce operator to obtain registration?

Yes. Threshold limit of Rs. 20 Lakh is not available to e-commerce operators and they would be liable to register under GST irrespective of the value of supply made by them.

Can an e-commerce operator avail the benefit of Composition Scheme under GST?

No. E-commerce operators cannot avail the benefit of Composition Scheme under GST. They must register as regular taxpayers, collect and deposit TCS and file GSTR-8 on GST Portal

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Goods/sectors that are out of the GST ambit include alcohol and specified petroleum products like petroleum crude, high-speed diesel, motor spirit, aviation turbine fuel and natural gas. Alcohol for human consumption continues to attract state excise duty and VAT. Tobacco and tobacco-based products attract both excise duty and GST. Taxes such as stamp duty, toll tax, road tax, electricity duty etc. are not part of GST.

    Hope this helps!

  2. Hey @HarishMehta

    Customs duty and cess as applicable along with IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

    Hope this helps!

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