Flow Chart of GST Registration Applicability in case of Electronic Commerce Supply

Last updated: 18 August 2021

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This article clarifies the Goods and Services Tax (GST) registration requirements for businesses involved in electronic commerce. It defines an e-commerce operator and a supplier, and outlines specific situations where mandatory GST registration is required for both, irrespective of their annual aggregate turnover. Certain exemptions may apply based on the type of services supplied and whether the e-commerce operator collects tax at source.

Summarised Provision of GST Registration Applicability in case of E-Commerce Supply

1. Electronic Commerce u/s-2(44)

Supply of Goods or Services or both, including digital products over digital or electronic network.

2. E-commerce Operator u/s-2(45)

Any Person who:

Owns,
Operates or
Manages digital or electronic facility or platform

For electronic commerce

GST Registration for E-Commerce: Who Needs It

3. Mandatory Registration for E-Commerce Operator & Suppliers Supplying through it u/s-24

Section-24(iv)

Section-24(ix)

Section-24(x)

Section-24(i) & 24(iii)

Intra-State Supply of Services specified u/s-9(5)
Deemed Supplier of Service:

E-Commerce Operator

Person who Supply goods or services or both
Other than Supplies specified u/s-9(5)
Through such E-Commerce Operator
- Who is required to collect tax at source u/s-52

Every E-commerce Operator
Who is required to collect tax at source u/s-52
Irrespective of Value of Supply made by them

E-commerce Operator &
Suppliers Supplying through it
Who are making any Inter-State Taxable Supply u/s-24(i)
Who are required to pay tax under reverse charge u/s-24(iii)

Registration threshold applicable

Irrespective of value of supply made by them

Notification No.65/2017-Central Tax dt.15/11/2017
Powers Conferred u/s-23(2)

Conditions:

Person(s) making Supply of Services
Other than Supply Specified u/s-9(5)
Through an E-Commerce Operator who is required to Collect Tax at Source u/s-52
AATO does not exceeds Rs.20 Lakhs
AATO does not exceeds Rs.10 Lakhs in case of “Special Category States” other than State of J&K.

Implication(s):

Exemption from obtaining GST Registration

Notification No.17/2017-Central Tax (Rate) dt.28/06/2017
Powers Conferred u/s-9(5)

Categories of Services	Tax on Intra-State Supplies shall be paid by
Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle	E-Commerce Operator
Services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes	E-Commerce Operator
	Supplier Supplying such Services through E-Commerce Operator If Supplier is liable for Registration u/s-22(1) of CGST Act.

Acronym/Abbreviations:

Sr. No.	Acronym / Abbreviations	Description
1	ECO	Electronic Commerce Operator
2	E-Commerce	Electronic Commerce
3	AATO	Annual Aggregate Turnover

Disclaimer: The aforesaid article presents the view of an independent writer who is an expert of Income Tax / GST Related Matters. The article is informative in nature and writer of the article shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your tax consultant / tax advisor before making any decision.

Refer attached PDF File containing Flow Chart of GST Registration Applicability in case of Electronic Commerce Supply

Also Read: Extract of Provisions Contained in Faceless Assessment Scheme w.e.f. 1st April 2021

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