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Background The rapid growth of e-commerce has revolutionized the way goods and services are bought and sold, creating complex challenges for taxation authorities worldwide. In India, the introduction of the Goods and Services Tax (GST) brought uniformity but also introduced new compliance requireme
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An E-Commerce Operator (ECO) is any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce, which includes websites and mobile applications that facilitate the supply of goods or services. This definition broadly includes quick commerce platforms, marketplaces, and aggregators.
Yes, persons supplying goods or services through an E-Commerce Operator (ECO) are mandatorily required to obtain GST registration, irrespective of their turnover threshold, unless their supplies fall under specific categories like passenger transport or accommodation where the ECO is deemed the supplier under Section 9(5) of the CGST Act.
The 'Place of Supply' determines whether a transaction is intra-State or inter-State. For goods, it's generally the location where goods are delivered, or the billing address if shipping and billing addresses differ. For digital goods (treated as services), it's the location of the recipient.
No, persons engaged in making any supply of goods through an e-commerce operator who is required to collect tax at source (TCS) are not eligible for the composition scheme.
ECOs are mandatorily required to collect tax at source (TCS) at the rate of 1% (0.5% CGST + 0.5% SGST or 1% IGST) on the net value of taxable supplies made through their platforms by other suppliers. They must deposit this collected tax with the government and file a monthly return (GSTR-8).
The commission, listing fees, marketing fees, or service charges levied by ECOs on suppliers are considered a supply of services classified under HSN Code 9985. These services attract GST at a rate of 18%.
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