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Wheter i am required to obtain Tcs registration in gst?

Shrey Laddha (CA Practice) (8 Points)

01 August 2020

background:
My firm is an online event planning platform where event vendors are registered and customer send us their inquiry. we connect customer and vendor. we don't charge customer. moreover customer also pays vendor directly. we collect commission on amount recieved by vendor. no other charges. we have no turnover till date. we don't have any payment responsibility and we do not collect payment online.

issues:
kindly guide whether we are ecommerce operator or not? Also whether we have to obtain compulsory registration in gst? any liability for deduction of tcs? whether our vendor are required to obtain gst registration (even with no turnover)?

please guide.

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6 Replies

pasala arjun (CA) (47 Points)
Replied 01 August 2020

Yes, u are required to obtain TCS registration of GST even if the turnover is below the limit specified or even with Nill turnover.

It does not depends on the whether Ur vendors are registered or not. It does not make any difference.

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Shrey Laddha (CA Practice) (8 Points)
Replied 01 August 2020

But I don't have any payment responsibility. even then?

pasala arjun (CA) (47 Points)
Replied 01 August 2020

Even though u do not have any responsibility for payment, it is required

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 02 August 2020

@ Shrey Laddha ji

Answer to your issue:

1. As pe GST law you are considered as an ecommerce operator.

2. As you are ecommerce operator you have to obtain compulsory registration in GST (As a normal Taxpayer).

3. You are not required to collect TCS as consideration with respect to such supplies by vendor to customer is not collected by you. ( i.e payment responsibility is not yours)
4. Your Vendors are not required to obtain compulsory GST registration except his Turnover exceed the 10/20/40 lakh limit as the case may be.

Note : As you are not required to collect TCS, you have to take registration as normal Taxpayer, not as ecommerce TCS.

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CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 03 August 2020

Section 24 requires compulsory registration of the supplier supplying services through e-commmerce platform.

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CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 03 August 2020

Read the second para may something help:

https://www.caclubindia.com/articles/tcs-mechanism-in-gst-42338.asp

Defn of “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

While an aggregator only connects the customer with the supplier/ service provider, an e-commerce operator facilitates the entire process of the supply of goods/ service. However under the GST law, even aggregators would be covered under the definition of ‘electronic commerce operator’. So E-commerce operator is liable for GST.

The law provides that the Central / State Government may on recommendation of the Council to notify that the e-commerce operator will be liable to discharge the tax on such supplies. It is important to note that, in such supplies, the e-commerce operator is neither the actual supplier of service/s nor does he actually receive the services. The actual supplier of services is a third party who provides such service to the customer through e-commerce operator. Instead of levying tax on such actual supplier, the law has imposed levy on e-commerce operator. Therefore, this would be an exception to the imposition of tax as specified in law .

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