Applicant not eligible for exemption, liable under CGST Act for commission retained in e-commerce operations.

The Applicant was found not eligible for the exemption under Sr. No. 13 of Notification No. 12/2017 as they acted as an intermediary in religious ceremonies. Additionally, the Applicant, operating as an Electronic Commerce Operator, was mandated to register under section 22/24 of the CGST Act, regardless of turnover. The GST liability was determined to be on the commission retained by the Applicant, not the total booking value.

---

---

Issues Involved:

1. Applicability of exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017.
2. Requirement for the Applicant to get registered under section 22/24 of CGST Act, 2017.
3. Determination of the value on which GST liability needs to be discharged.

Detailed Analysis:

Issue 1: Applicability of Exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017

The applicant provides services by hiring pundits for religious ceremonies like pujas and abhisheks through an online platform. The applicant contended that these services fall under Sr. No. 13 of Notification No. 12/2017, which exempts services by way of conducting religious ceremonies. However, the authority observed that the applicant acts as a facilitator or intermediary between the customers and the pundits. The actual religious ceremonies are conducted by the pundits, not by the applicant. Therefore, the exemption under Sr. No. 13 of Notification No. 12/2017 is not applicable to the applicant as they do not directly conduct the religious ceremonies but merely facilitate the service.

Issue 2: Requirement for the Applicant to Get Registered under Section 22/24 of CGST Act, 2017

The applicant argued that their expected turnover was below the threshold limit of Rs. 20 lakhs and thus, they were not required to register under the CGST Act. However, the authority noted that the applicant operates an online platform for booking religious services, which qualifies them as an "Electronic Commerce Operator" under sections 2(44) and 2(45) of the CGST/MGST Act. According to section 24 of the CGST Act, electronic commerce operators are required to register irrespective of their turnover. Consequently, the applicant is liable to get registered under section 22/24 of the CGST Act.

Issue 3: Determination of the Value on Which GST Liability Needs to Be Discharged

The applicant sought clarity on whether GST should be discharged on the commission received or on the total booking value. The authority clarified that GST is to be levied on the "transaction value," which is the price actually paid for the supply of services. In this case, the applicant receives the total booking amount from the users and then pays a portion to the pundits, retaining a commission. The authority determined that GST liability should be discharged on the commission portion retained by the applicant, not on the total booking value.

Order:

1. The exemption under Sr. No. 13 of Notification No. 12/2017 - Central Tax (Rate) dated 28th June 2017 is not applicable to the Applicant.
2. The Applicant is required to get registered under section 22/24 of the CGST Act, 2017 as they qualify as an "Electronic Commerce Operator."
3. The Applicant is liable to pay GST on the commission received from website users/pundits, not on the total booking value received.

This comprehensive analysis ensures that the legal terminology and significant phrases from the original judgment are preserved, providing a thorough understanding of the issues and the authority's rulings.

---