Assessee would be considered as electronic commerce operator when digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged


Quick Summary
The Karnataka AAR has ruled that a company facilitating the sale of digital gold through its online platform, even if sales proceeds go directly to the seller via an escrow account, is considered an electronic commerce operator. As such, the company is required to collect tax at source (TCS) under Section 52 of the CGST Act and must obtain compulsory registration as an e-commerce operator.

Court :
Karnataka, AAR

Brief :
The Karnataka, AAR in the case of In Re. M/s. Changejar Technologies Private Limited [Advance Ruling No. KAR ADRG 08/2024 dated February 28, 2024] ruled that the Applicant would be considered as electronic commerce operator and is required to collect tax at source in case where the digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged.

Citation :
Advance Ruling No. KAR ADRG 08/2024 dated February 28, 2024

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Bimal Jain
Published in GST
Views : 152
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