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

Author
By Sakshi Shah on February 18, 2019

As per the GST Act, an Electronic Commerce Supplier i.e. E-Commerce Supplier is a person who makes the supply of goods or services through a digital or electronic platform owned and managed by an e-commerce operator.

The impact of GST on e-commerce supplier is summarised in the table below:

ProvisionImpact
Conditions1.Person sell goods or services through the e-commerce platform owned and managed by e-commerce operator
2. Payment on sales is collected by the e-commerce operator
Registration1. E-commerce supplier of goods – Compulsory Registration irrespective of the turnover
2. E-commerce supplier of services – Compulsory registration only if the turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
TaxabilityLiable to charge GST on the goods or services sold to the customers at the applicable GST Rate
Tax Collected at Source (TCS)Receives payment from the e-commerce operator after deduction of TCS @1% on the value of goods or services sold through their platform
TCS Rate1. Inter-state supplies – IGST @ 1%
2. Intra-state supplies – CGST @ 0.5% and SGST @ 0.5%
TCS CreditCan claim credit of TCS collected by the e-commerce operator by filing GST Return on the GST Portal
GST Return1. GSTR-2A – auto-populated return that reflects the TCS credit. The TCS credit is added to the e-cash ledger on the GST Portal
2. GSTR-3B – file on or before 20th of next month for payment of GST charged on sales
3. GSTR-1 – file monthly or quarterly based on the turnover of sales
4. GSTR-9 – file on or before 31st December of the next financial year
What is the impact of GST on an E-Commerce Operator?

FAQs

1. Is it mandatory for e-commerce supplier to obtain registration?

DescriptionWhether registration required?
E-commerce supplier of goodsCompulsory registration irrespective of turnover
E-commerce supplier of servicesCompulsory registration only if the turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
[Notification no. 65/2017 dated 15.11.17]