GST reg for suppliers selling through ecommerce operator
This query is : Resolved
02 September 2020
We are developing a platform like amazon in which customers can place order at any outlets through the app and we shall collect the items and deliver it to customers. Is it mandatory that the suppliers (shops from which goods are collected) need mandatory registration under GST? I found Notification No. 65/2017 – Central Tax which says " persons making supplies of services, other than supplies specified under subsection (5) of section 9 of the said Act through an electronic commerce operator who is
required to collect tax at source under section 52 of the said Act, and having an aggregate
turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in
a financial year, as the category of persons exempted from obtaining registration under the
said Act.
Can someone please clarify?
required to collect tax at source under section 52 of the said Act, and having an aggregate
turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in
a financial year, as the category of persons exempted from obtaining registration under the
said Act.
Can someone please clarify?
02 September 2020
What will be the nature of supply through this platform- goods or services?
The persons (suppliers in this case) supplying goods or services through electronics commerce operator platform has to mandatory take registration.
The above exemption is only for the suppliers of services through Elect Commerce Operator if the aggregate T/O of the supplier is less than 20 lakhs.
So it depends on the facts of the case.
The persons (suppliers in this case) supplying goods or services through electronics commerce operator platform has to mandatory take registration.
The above exemption is only for the suppliers of services through Elect Commerce Operator if the aggregate T/O of the supplier is less than 20 lakhs.
So it depends on the facts of the case.
04 September 2020
Thank you for your reply sir. This platform acts like a delivery agent. it collects grocery , medicines or anything from shops and delivers it to the customers. same as swiggy .. but not restricted to hotels.
so as you said since this involves goods, the exemption is not applicable right?
so as you said since this involves goods, the exemption is not applicable right?
27 July 2024
### GST Registration for Suppliers Selling Through E-Commerce Platforms
Your scenario involves developing a platform similar to Amazon or Swiggy, where the platform collects items from suppliers (shops) and delivers them to customers. In this context, understanding GST registration requirements for suppliers is crucial.
#### **1. Understanding GST Registration Requirements:**
**Suppliers' GST Registration Requirement:**
- **Notification No. 65/2017 - Central Tax:** This notification specifies exemptions from GST registration for certain suppliers when their aggregate turnover does not exceed ₹20 lakhs (or ₹10 lakhs for special category states) and if they are making supplies through an e-commerce operator who is required to collect tax at source (TCS) under section 52 of the CGST Act.
**Key Points of Notification No. 65/2017:**
- The exemption applies to **suppliers of services**, not goods.
- **Goods Supplied Through E-Commerce Operators:** Suppliers providing goods need to be registered under GST irrespective of their turnover if they supply through an e-commerce operator.
#### **2. Applicability to Your Platform:**
Since your platform deals with goods (such as groceries, medicines, etc.) and not just services, the exemption mentioned in Notification No. 65/2017 is not applicable for the suppliers of goods. Here’s a breakdown of what needs to be considered:
1. **Suppliers of Goods:**
- **Mandatory Registration:** Suppliers (shops) providing goods need to be registered under GST irrespective of their turnover if they are selling through an e-commerce platform. This is because the sale of goods through an e-commerce operator does not fall under the exemption for non-registration.
2. **E-Commerce Operators:**
- **Collection of TCS:** Your platform, as an e-commerce operator, is required to collect tax at source (TCS) from the suppliers of goods. You need to comply with TCS requirements and file periodic returns showing the tax collected.
#### **3. GST Registration Process for Suppliers:**
**For Suppliers (Shops):**
- **Turnover Exceeding Exemption Limit:** If the aggregate turnover exceeds ₹20 lakhs (or ₹10 lakhs for special category states), they must obtain GST registration.
- **Turnover Below Exemption Limit:** Even if their turnover is below the threshold limit, if they are supplying goods through an e-commerce platform, registration is mandatory.
**For E-Commerce Platform (You):**
- **Compliance with TCS:** Ensure that your platform complies with TCS requirements and collects and remits tax as required under GST provisions.
#### **4. Summary of Actions:**
1. **Suppliers’ Registration:**
- Suppliers of goods must be registered under GST, regardless of their turnover, when selling through your platform.
2. **Platform Compliance:**
- Your platform should comply with TCS provisions and ensure proper collection and remittance of tax.
3. **Consultation:**
- Consider consulting a GST professional to ensure compliance with GST registration, TCS, and other related requirements.
#### **In Conclusion:**
- **Suppliers of goods** on your platform are not exempt from registration under GST even if their turnover is below ₹20 lakhs.
- Your platform needs to ensure that all suppliers are registered and that you comply with TCS obligations.
This approach ensures compliance with GST regulations and proper functioning of your e-commerce platform.
Your scenario involves developing a platform similar to Amazon or Swiggy, where the platform collects items from suppliers (shops) and delivers them to customers. In this context, understanding GST registration requirements for suppliers is crucial.
#### **1. Understanding GST Registration Requirements:**
**Suppliers' GST Registration Requirement:**
- **Notification No. 65/2017 - Central Tax:** This notification specifies exemptions from GST registration for certain suppliers when their aggregate turnover does not exceed ₹20 lakhs (or ₹10 lakhs for special category states) and if they are making supplies through an e-commerce operator who is required to collect tax at source (TCS) under section 52 of the CGST Act.
**Key Points of Notification No. 65/2017:**
- The exemption applies to **suppliers of services**, not goods.
- **Goods Supplied Through E-Commerce Operators:** Suppliers providing goods need to be registered under GST irrespective of their turnover if they supply through an e-commerce operator.
#### **2. Applicability to Your Platform:**
Since your platform deals with goods (such as groceries, medicines, etc.) and not just services, the exemption mentioned in Notification No. 65/2017 is not applicable for the suppliers of goods. Here’s a breakdown of what needs to be considered:
1. **Suppliers of Goods:**
- **Mandatory Registration:** Suppliers (shops) providing goods need to be registered under GST irrespective of their turnover if they are selling through an e-commerce platform. This is because the sale of goods through an e-commerce operator does not fall under the exemption for non-registration.
2. **E-Commerce Operators:**
- **Collection of TCS:** Your platform, as an e-commerce operator, is required to collect tax at source (TCS) from the suppliers of goods. You need to comply with TCS requirements and file periodic returns showing the tax collected.
#### **3. GST Registration Process for Suppliers:**
**For Suppliers (Shops):**
- **Turnover Exceeding Exemption Limit:** If the aggregate turnover exceeds ₹20 lakhs (or ₹10 lakhs for special category states), they must obtain GST registration.
- **Turnover Below Exemption Limit:** Even if their turnover is below the threshold limit, if they are supplying goods through an e-commerce platform, registration is mandatory.
**For E-Commerce Platform (You):**
- **Compliance with TCS:** Ensure that your platform complies with TCS requirements and collects and remits tax as required under GST provisions.
#### **4. Summary of Actions:**
1. **Suppliers’ Registration:**
- Suppliers of goods must be registered under GST, regardless of their turnover, when selling through your platform.
2. **Platform Compliance:**
- Your platform should comply with TCS provisions and ensure proper collection and remittance of tax.
3. **Consultation:**
- Consider consulting a GST professional to ensure compliance with GST registration, TCS, and other related requirements.
#### **In Conclusion:**
- **Suppliers of goods** on your platform are not exempt from registration under GST even if their turnover is below ₹20 lakhs.
- Your platform needs to ensure that all suppliers are registered and that you comply with TCS obligations.
This approach ensures compliance with GST regulations and proper functioning of your e-commerce platform.
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