E- Commerce Taxability

[ABHISHEK Kumar]

Dear Sir,

Our clients is engaged providing E-commerce service like Zomato Gold where customer book reservation for dinning in a restaurant through our app. Customer book for dinning on certain day through our App. Restaurant raise bill in name of Customer and Customer pays bill of restaurant through our app. We deduct our commission and pays to the restaurant.

Taxable Value- Rs 10000, GST 500, Total = 10500.

we deduct 1% Tcs Gst on 10000 = 100

1% 194O income tax Tds on Rs 10500= 105

Our Commission = 200

Net Payment to Restaurant = 10095.

Query -

1. Whether 20 lacs exemption for Gst registration available for our commission of Rs 200 received by us.

2. Gst rate on Rs 200 commission received by us and SAC Code.

3. Whether deductions made by us are in accordance with law.

[Altamush Zafar]

If you are providing services like that of Zomato then you are chargeable under section 9(5). Therefore you are liable to pay GST on the whole amount as that of the restaurant.

Kindly take paid professional opinion

[Shilpi Jain]

If you are required to do TCS there is complusory registration. Why are you then looking at 20L time limit?

[ABHISHEK Kumar]

Dear Sir/ Mam,

Thanks for your reply. For TCS GST Registration is mandatory. Just want to know whether for 2% commission earned by us, Rs 20 lacs exemption available or not.

[ABHISHEK Kumar]

For TCS we have to mandatorily apply for separate Registration for Filing GSTR-8. For Commission Income we have to apply for Normal Registration for filing GSTR-1 and 3B. whether Rs 20 lacs exemption available to us for our commission income.

[KASTURI SETHI]

Not eligible for threshold exemption in this scenario.

[Amit Agrawal]

'every electronic commerce operator who is required to collect tax at source under section 52' needs to compulsorily take registration under GST as per Section 24 (x) of the CGST Act, 2017.

[Amit Agrawal]

And Section 24 starts with non-obstante clause 'Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, -----------

...................'.

Thereby, optional relaxation from GST registration till aggregate turnover reaching 20 Lacs (as given in Section 22 (1)) is not available to the electronic commerce operator who is required to collect tax at source under section 52.

[Amit Agrawal]

There is no notification under GST law to exempt anyone from paying GST till his aggregate turnover reaches Rs. 20 Lac.

In other words, one is liable to pay GST against taxable supplies from the date he is liable to be registered under GST.

In all above posts, shared views of mine are strictly personal and the same should not be construed as professional advice / suggestion.

[Shilpi Jain]

Once registered liability will arise for every transaction and threshold exemption not applicable.UNder GST threshold exemption is only for registration and not for paying tax liability.

AI Summary

E commerce operator registration required; threshold exemption unavailable and GST liability arises on amounts collected, not only commission. An electronic commerce operator required to collect tax at source must compulsorily register under GST and cannot claim the turnover threshold exemption; once registered, GST liability arises on each transaction and, per one reply applying section 9(5), the operator may be liable to account for GST on the gross amount collected rather than only on its commission. Separate registrations and filings are needed for TCS reporting and for regular supply returns.