Tax Query: Do I need to amend my GST registration if I have now begun to sell goods on an e-commerce portal?

1. If I have voluntarily registered under GST previously, do I need to amend my GST registration if I have begun to sell goods on an e-commerce portal?

Ans: If you are registering under GST as a new business to sell on an e-commerce portal, then under ‘Reason to obtain registration’, you need to select ‘Selling through e-commerce portal’. However, suppose you have already registered under GST voluntarily. In that case, you are not required to amend your registration to sell on an e-commerce portal, except if you need to add a place of business or make a core/non-core amendment to your GST registration. 

2. Are e-commerce sellers entitled to the threshold exemption under GST? 

Ans: No. According to Section 24(ix) of the Central Goods and Services Tax (CGST) Act, the threshold exemption under GST is not available in cases where the seller sells via an e-commerce operator liable to collect tax at source (TCS) under Section 52. However, service providers are eligible for the threshold exemption if their turnover does not exceed Rs.20 lakh in a financial year. 

An exemption is also available to suppliers who provide services specified in the notification issued under Section 9(5), such as:

• Passenger transportation service providers provide services through e-commerce operators like Uber, OLA, etc.
• Hotel service providers who provide services through aggregator platforms like Yatra.com, etc., except where liable for registration under Section 22(1) of the CGST Act.
• Housekeeping service providers who provide services through aggregator platforms such as Urban Company, etc., except when required to register under Section 22(1) of the CGST Act.
• Restaurant service providers other than services provided by restaurants, eating joints etc. that are located at specified premises. Specified premises provide hotel accommodation with a declared tariff value exceeding Rs.7,500 per unit per day or equivalent.

3. Are all e-commerce operators required to collect tax on behalf of their suppliers? Also, is an e-commerce operator liable to pay taxes instead of the supplier regarding the supply of goods/services made through it?

Ans: Yes, every e-commerce operator (other than the operators paying tax under Section 9(5) of the CGST Act) is required to collect tax where the e-commerce operator collects the consideration regarding the taxable supply. 

In the case of services notified under Section 9(5) of the CGST Act, the e-commerce operator pays the tax. All the Act’s provisions will apply to the e-commerce operator as if they were the supplier liable to pay tax regarding the supply of such services.

4. If I am a supplier who sells my products via a website hosted by me, do I fall under the definition of an e-commerce operator, and am I required to collect TCS on such supplies? 

Ans: As per Sections 2 (44) and 2(45) of the CGST Act, you will fall under the definition of an e-commerce operator. However, as per Section 52 of the Act, TCS must be collected only on the net value of taxable supplies sold through it by other suppliers. The e-commerce operator collects the consideration. Hence, if a supplier sells their products through their website, there’s no requirement to collect TCS.

5. Can sellers supplying goods via an e-commerce operator(s) have a commonplace of business?

Ans: Yes, sellers supplying goods via e-commerce operators can have a commonplace of business. Any registered person can declare any premises as their place of business if they have the requisite documents to use the premises, and there is no restriction on using the premises by multiple persons. 

6. If a seller sells goods via two or more e-commerce operators, who must deduct TCS? 

Ans: If a seller sells goods via two or more e-commerce operators, then in such cases, each transaction will need to be treated separately and examined according to the provisions of Section 52 of the CGST Act. TCS will be deducted accordingly.

For any clarifications/feedback on the topic, please contact the writer at athena.rebello@cleartax.in