E commerce operator with no commission

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hello friends
a person want to create an application which general public can download from playstore on their device for searching gold and silver rates.
people will register and put their rates of gold/silver for sale. however they cant sale gold on this App. buyers need to contact seller in offline mode.
so now the person who is owner of this application wants to obtain gst registration.
whether he will be considered as e commerce operator or not?
as no buy sale on the app.. ร nd no charges from seller or buyer and no commission exist.
plz provide some solution..
very confused.
Replies (1)

Hey! Here’s the clarity on your scenario:


Is this person an e-commerce operator under GST?

No, not really, based on the descripttion:

  • E-commerce operator under GST means a person who owns or operates an electronic platform for facilitating supply of goods or services or both, and collects commission or fees from sellers or buyers.

  • In your case:

    • The app only displays gold/silver rates for users to see and connect offline.

    • No actual sale or purchase happens on the platform.

    • No commission or fee is charged by the owner of the app.

This means the person is NOT facilitating supply of goods or services via the platform, but just providing information service.


What does this imply for GST registration?

  • Since no supply is being facilitated through the platform, the person is not an e-commerce operator under GST law.

  • However, the person is providing an information service through the app.

  • If the aggregate turnover from such information services crosses the GST registration threshold (e.g., Rs. 20 lakh or Rs. 10 lakh in special category states), then registration for GST is required as a regular service provider.

  • If the person is not charging any money (no fee, no subscripttion, no commission), then turnover may be nil or minimal and GST registration may not be mandatory.


Summary:

Condition Conclusion
No sale of goods or services on app Not an e-commerce operator
No commission or fees charged No e-commerce TCS liability
Provides information service May require GST registration if turnover exceeds threshold
No fees charged No GST liability

What to do next?

  • Assess if the app owner is charging anything (subscripttion, ads, or any service fees).

  • If charging fees and turnover crosses threshold → get regular GST registration.

  • If no income from app → no GST registration needed for now.


CCI Pro

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