Impact of GST on E-commerce

There has been a surge in the number of e-commerce websites popping up over the past few years. Physical Shopping has been replaced by e-commerce tremendously.

 In specific to the ecommerce sector, the GST Act introduces the concept of Tax Collection at Source (TCS) with an intent to check tax evasion by etailers.  It is proposed that every ecommerce operator collects tax at source out of the amount payable to the supplier of goods and services and such collection is reported to the Government.

Let’s understand the impact of GST on e-commerce in detail  through FAQ’s.

Q 1. What is Electronic Commerce?

Ans. Electronic Commerce has been defined to mean the supply of goods or services or both, including digital products over digital or electronic network.

Q 2. Who is an e-commerce operator?

Ans. Electronic Commerce Operator has been defined to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

Q 3. Is it mandatory for e-commerce operator to obtain registration?

Ans. Yes. The benefit of threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.

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