VAT liability on e commerce transactions arises when platforms act as dealers or agents, requiring registration and tax collection.
VAT within a State is leviable on sale of goods by a dealer or person liable to be registered; agents effecting purchase or sale on behalf of principals resident in the State are liable for VAT on those transactions. An e commerce platform that performs distribution, supply, handling, warehousing or door to door delivery may be treated as a dealer and attract VAT registration and liability to the extent of those activities. CST applies where goods move inter State as a consequence of sale, with revenue to the originating State. (AI Summary)