GST
                                                 SECTORAL SERIES
                                            E-Commerce
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                                    FAQ: E-Commerce
                                    Question 1:  What is Electronic Commerce? 
                                    Answer:  Electronic Commerce has been defined in Sec. 2(44) 
                                    of the CGST Act, 2017 to mean the supply of goods or services 
                                    or both, including digital products over digital or electronic 
                                    network.
                                    Question 2:  Who is an e-commerce operator? 
           E-Commerce               Answer: Electronic  Commerce  Operator  has  been  defined 
                                    in Sec. 2(45) of the CGST Act, 2017 to mean any person who 
                                    owns, operates or manages digital or electronic facility or 
                                    platform for electronic commerce.
                                    Question 3: Is  it  mandatory  for  e-commerce  operator  to 
                                    obtain registration?
                                    Answer:  Yes. As per Section 24(x) of the CGST Act, 2017 the 
                                    benefit of threshold exemption is not available to e-commerce 
                                    operators and they are liable to be registered irrespective of 
                                    the value of supply made by them.
                                    Question 4: Whether a person supplying goods or services 
                                    through e-commerce operator would be entitled to threshold 
                                    exemption? 
                                    Answer:  No. Section 24(ix) of the CGST Act, 2017 lays down 
                                    that the threshold exemption is not available to such persons 
                                    and they would be liable to be registered irrespective of the 
                                    value of supply made by them. This requirement is, however, 
                                    applicable only if the supply is made through such electronic 
                                    commerce operator who is required to collect tax at source 
                                    under section 52 of the CGST Act, 2017.However, where the 
                                    e-commerce operators are liable to pay tax on behalf of the 
                                    suppliers under a notification issued under section 9 (5) of the 
                                    CGST Act, 2017, the suppliers of such services are entitled for 
                                    threshold exemption.
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          Question 5:  Will an e-commerce operator be liable to pay tax              Question 24:  I am a supplier selling my own products through 
          in  respect of supply of goods or services made through it,                a web site hosted by me. Do I fall under the definition of an 
          instead of actual supplier?                                                “electronic commerce operator”? Am I required to collect TCS 
          Answer:  Yes, but only in case of services notified under Sec.             on such supplies?
          9(5) of the CGST Act, 2017. In such cases tax shall be paid                Answer: As per the definitions in Section 2 (44) and 2(45) 
          by  the  electronic  commerce  operator  if  such  services  are           of the CGST Act, 2017, you will come under the definition of 
          supplied through it and all the provisions of the Act shall apply          an “electronic commerce operator”. However, according to 
          to such electronic commerce operator as if he is the supplier              Section 52 of the Act ibid, TCS is required to be collected on 
          liable to pay tax in relation to the supply of such services. A            the net value of taxable supplies made through it by other 
          similar provision for inter-State supply is provided for in Sec.           suppliers where the consideration is to be collected by the 
          5(5) of the IGST Act, 2017. (Refer to Notification No. 17/2017-            ECO. In cases where someone is selling their own products 
          Central Tax (Rate) and 14/2017- Integrated Tax (Rate) dated                through a website, there is no requirement to collect tax at 
          28.06.2017).                                                               source as per the provisions of this Section. These transactions 
          Question 6:  Will  threshold  exemption  be  available  to                 will be liable to GST at the prevailing rates.
          electronic commerce operators liable to pay tax on notified 
          services?                                                                  Question 25:  We purchase goods from different vendors and 
          Answer:  No.  Threshold  exemption  is  not  available  to                 are selling them on our website under our own billing. Is TCS 
          e-commerce operators who are required to pay tax on notified               required to be collected on such supplies?
          services supplied through them.                                            Answer: No. According to Section 52 of the CGST Act, 2017, 
          Question 7: What is Tax Collection at Source (TCS)?                        TCS is required to be collected on the net value of taxable 
          Answer:  The e-commerce operator is required to collect an                 supplies  made  through  it  by  other  suppliers  where  the 
          amount at the rate of one percent (0.5% CGST + 0.5% SGST) of               consideration is to be collected by the ECO. In this case, there 
          the net value of taxable supplies made through it, where the               are two transactions - where you purchase the goods from 
          consideration with respect to such supplies is to be collected             the vendors, and where you sell it through your website. For 
          by such operator. The amount so collected is called as Tax                 the first transaction, GST is leviable, and will need to be paid to 
          Collection at Source (TCS). (Refer to Section 52(1) of the CGST            your vendor, on which credit is available for you. The second 
          Act, 2017).                                                                transaction is a supply on your own account, and not by other 
          Question 8: It is very common that customers of e-commerce                 suppliers and there is no requirement to collect tax at source. 
          companies return goods. How these returns are going to be                  The transaction will attract GST at the prevailing rates.
          adjusted?
          Answer:  An e-commerce company is required to collect tax 
          only on the net value of taxable supplies. In other words,                 Note: Reference to CGST Act, 2017 includes reference to SGST 
          the value of supplies which are returned are adjusted in the               Act, 2017 and UTGST Act, 2017 also.
          aggregate value of taxable supplies. (Refer to Explanation to 
          Sec. 52(1) of the CGST Act, 2017).
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