GST ON ECO

Hi Joy,

Thanks for your detailed question about GST registration and compliance for your trading business selling through your own website and third-party e-commerce platforms like Pepperfry and Jaypore.

Key Points About Your Setup:

You have a partnership firm registered under GST as a trader.
You buy goods from vendors and store them in your warehouse.
You sell goods through your own website and also through third-party e-commerce platforms.
The payment for sales made on third-party platforms is received directly by those platforms, not by you.
You currently file GSTR-1 and GSTR-3B as a regular trader.

GST Rules for E-commerce Operators & Sellers:

1. When is E-commerce Operator (ECO) Registration Required?

An e-commerce operator (ECO) is defined under GST as a person who owns, operates or manages an e-commerce platform.

Examples: Amazon, Flipkart, Pepperfry, Jaypore.

You are not an ECO if you are simply a seller using these platforms to sell your goods.

You are the supplier or taxable person supplying goods on the platform.

2. Are You Required to Register as an ECO?

No, you do not need to register as an ECO unless you run an e-commerce platform.

3. Your GST Obligations as a Supplier on Third-Party Platforms

As a supplier selling goods on platforms like Pepperfry, you are required to:
- Obtain GST registration (which you have).
- Issue tax invoices to the buyers (or platforms if they act as agents).
- Report supplies in your GSTR-1 and pay GST on your sales.

4. Tax Collection at Source (TCS) by E-commerce Operators

E-commerce operators are required to collect TCS @ 1% on the net value of taxable supplies made through their platform (Section 52 of CGST Act).
This TCS is collected by the platform and deposited with the government.
As a seller, you will get a credit of this TCS in your electronic cash ledger to adjust against your GST liability.

5. Special Cases Where You May Need Separate Registrations

If you operate in multiple states, you need GST registration in each state.
If your supply is on the basis of Fulfillment Centers owned by the e-commerce platform, sometimes you may need to register in those states.
But this does not change your status as a supplier and does not make you an ECO.

Summary:

Your Role	Requirement
Supplier selling on own website	GST Registration & Filing Required
Supplier selling on third-party platforms	GST Registration & Filing Required
Running an e-commerce platform (ECO)	ECO Registration Required
Receiving payment directly from platform	TCS @ 1% collected by platform, claim credit