What is the impact of GST on an E-Commerce Operator?
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 the e-commerce operator is summarised in the table below:
|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|
1. 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.
2. 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.