GST Registration Exemption to Suppliers of Goods Supplies through E-commerce Operators and TCS: CBIC Notifies Conditions [Read Notification]

The Central Board of Indirect Tax and Customs (CBIC) has notified conditions for registration of Goods and Service Tax (GST) to suppliers of Goods supplies through E-commerce operators and Tax Collection at Source (TCS).

The central government has also issued notification No. 36/2023 on 4th August, 2023 with regard to electronic commerce operator who is required to collect tax at source under section 52  as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons paying tax under section 10 of the said Act.

They include 1) the electronic commerce operator shall not allow any inter-State supply of    goods through it by the said person

2) the electronic commerce operator shall collect tax at source under sub-section (1) of section 52 of the said Act in respect of supply of goods made through it by the said person and pay to the Government as per provisions of sub-section (3) of section 52 of the said Act; and

3) the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal. This notification No. 36/2023 shall take effect from the 1st day of October, 2023.

The central Government vide notification No. 37/2023- Central Tax issued on 1st August 2023 has notified the exemption for  GST registration exemption to suppliers of Goods which are supplied through E- Commerce operators and Tax Collection at Source(TCS)  subject to condition with effect from 1st day of October, 2023.

Further the Central Government, on the recommendations of the Council, hereby notifies the electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons exempted from obtaining registration  in accordance with the notification issued under sub-section (2) of section 23 vide notification number 34/2023- Central Tax, dated the 31st July, 2023, published in the Gazette of India, namely

(i) the electronic commerce operator shall allow the supply of goods through it by the said person only if enrolment number has been allotted on the common portal to the said person;

(ii) the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;

(iii) the electronic commerce operator shall not collect tax at source under sub-section (1) of section 52 in respect of supply of goods made through it by the said person; and

 (iv) the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.

The notification also said that where multiple electronic commerce operators are involved in a single supply of goods through electronic commerce operator platform, “the electronic commerce operator” shall mean the electronic commerce operator who finally releases the payment to the said person for the said supply made by the said person through him.

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