Ecommerce operator vs digital marketing

This query is : Resolved

CA jignesh daiya (Querist)
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14 April 2021 Dear Sir

Whether any judgment available for providing digital marketing service is not ecommerce operator ?
please guide

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 As of my last update, there isn't a specific judgment that categorically determines whether providing digital marketing services makes a company an ecommerce operator under Indian law. However, the classification as an ecommerce operator typically depends on the nature of services provided and the role in facilitating online transactions. Here’s a general understanding:

1. **Definition of Ecommerce Operator:** Under Indian GST law, an ecommerce operator is defined as any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce. They facilitate supply of goods or services between sellers and buyers through their platform.

2. **Digital Marketing Services:** Companies offering digital marketing services typically promote products or services online through various digital channels (e.g., social media, search engines, email marketing). They help businesses reach their target audience but generally do not directly facilitate transactions or act as intermediaries for sale or purchase of goods/services.

3. **Key Considerations:**
- **Nature of Service:** If a company primarily offers digital marketing services without directly selling goods or services through its platform, it may not be classified as an ecommerce operator.
- **Role in Transactions:** Ecommerce operators typically handle payments, logistics, or facilitate transactions. Digital marketing firms usually focus on promotion and visibility.

4. **Legal Guidance:** While there may not be a specific case law addressing this exact scenario, legal interpretation would generally focus on whether the company's activities meet the criteria of an ecommerce operator as defined in GST laws.

To ascertain your specific situation:
- Review the nature of services provided and how they align with GST definitions.
- Consult with a tax advisor or legal expert familiar with GST laws to determine your company's classification.
- Stay updated with any recent legal developments or clarifications from GST authorities regarding ecommerce operator definitions.

If you need specific legal advice tailored to your situation, consulting a professional would be advisable to ensure compliance with Indian tax regulations.