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.

AI Summary

E-commerce operators must register for GST; Rs 20 lakh exemption doesn't apply. GST charged on commission is mandatory. An individual inquired about the applicability of Goods and Services Tax (GST) and income tax deductions for an e-commerce service similar to Zomato Gold. The service involves customers booking restaurant reservations through an app, with payments processed via the app and commissions deducted before paying the restaurant. The key questions were about the Rs 20 lakh GST registration exemption for their commission, the GST rate on the commission, and the legality of their deductions. Responses clarified that GST registration is mandatory for e-commerce operators collecting tax at source, and the Rs 20 lakh exemption does not apply.