What is the impact of GST on an E-Commerce Operator?

Author
By Sakshi Shah on February 18, 2019

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:

Provision  Impact
ConditionsA 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.
RegistrationCompulsory Registration irrespective of the threshold limit of Rs.20 lacs (Rs.10 lacs for special category states)
TaxabilityLiable to collect TCS (Tax Collected at Source) on the payment made to e-commerce supplier
TCS RateInter-state supplies – IGST @ 1%Intra-state supplies – CGST @ 0.5% and SGST @ 0.5%
Payment of TCSLiable to deposit TCS with the GST department within 10 days from the end of the month in which the TCS was collected
GST ReturnGSTR-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?

FAQs

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.