Page 20 - GSTL_27th August 2020_Vol 39_Part 4

J76 GST LAW TIMES [ Vol. 39
Notwithstanding anything to the contrary contained in this Act, every elec-
tronic commerce operator (hereafter in this section referred to as the “opera-
tor”), not being an agent, shall collect an amount calculated at such rate not
exceeding one per cent., as may be notified by the Government on the rec-
ommendations of the Council, of the net value of taxable supplies made
through it by other suppliers where the consideration with respect to such sup-
plies is to be collected by the operator.
When we refer Amazon model, consideration is collected by Amazon on behalf of
supplier (which is being confirmed on invoice directly issued by supplier to cus-
tomer) and hence TCS provisions are attracted. Whereas in Uber model, considera-
tion is collected by Uber itself on its own invoice and not on behalf of supplier.
Hence TCS provisions are not attracted.
GST Registration
Compulsory registration is covered under Section 24 of CGST Act, 2017.
Relevant extract of the said provision is mentioned hereunder :
Notwithstanding anything contained in sub-section (1) of section 22, the
following categories of persons shall be required to be registered under this
Act, -
(iv) person who are required to pay tax under sub-section (5) of sec-
tion 9;
………
(ix) persons who supply goods or services or both, other than sup-
plies specified under sub-section (5) of section 9, through such elec-
tronic commerce operator who is required to collect tax at source un-
der section 52;
(x) every electronic commerce operator;
Majorly all e-commerce models are covered as per above two models described.
Lets understand intricacies of such e-commerce models w.r.t. registration :
(1) There are four parties in above two models who wear suppliers’ hat
in the transactions involved :
- Amazon
- Supplier of Amazon (Vendor)
- Uber
- Supplier of Uber (Cab-operator)
Amazon : Amazon gets covered under Section 24(x) as an
e-commerce operator.
Supplier of Amazon (Vendor) : Supplier of Amazon will be covered
under Section 24(ix) not just because it is not covered under sup-
plies specified in Section 9(5) but also on account of Amazon falling
under e-commerce operator category who is required to collect
TCS.
Uber : Uber is covered under twin clauses of Section 24(iv) and Sec-
tion 24(x) to be liable to be registered.
Supplier of Uber (Cab-operator) : Notification No. 17/2017-C.T.
(Rate), dated 28-6-2017 notified category of services on which tax
liability will be cast on e-commerce operator as if it is the supplier
of services. Extract of said notification is as under :
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