Page 21 - GSTL_27th August 2020_Vol 39_Part 4

2020 ] GST REGISTRATION IN E-COMMERCE MODEL J77
(i) services by way of transportation of passengers by a radio-
taxi, motorcab, maxicab and motor cycle;
(ii) services by way of providing accommodation in hotels, inns,
guest houses, clubs, campsites or other commercial places
meant for residential or lodging purposes, except where the
person supplying such service through electronic commerce
operator is liable for registration under sub-section (1) of Sec-
tion 22 of the said Central Goods and Services Tax Act.
(iii) services by way of house-keeping, such as plumbing, carpen-
tering etc., except where the person supplying such service
through electronic commerce operator is liable for registration
under sub-section (1) of Section 22 of the said Central Goods
and Services Tax Act.
The notification broadly covers taxi services, hotel and accommoda-
tion services and house-keeping services. Hence supplier of uber is
not required to register under GST.
(2) In relation to said notification, we may study services provided
through Urban Clap.
Say an e-commerce operator (say UrbanClap), provides personal
grooming service to customers. Here supplier of services who actu-
ally performs the service is not covered under above notification as
services by way of house-keeping is only covered. House-keeping
basically covers repairs and maintenance works of house. Personal
grooming and house-keeping services are different. Then can we
say a service provider will be required to take compulsory registra-
tion?
When we closely refer Section 24(ix), three conditions simultaneous-
ly needs to be satisfied :
- Person supplying goods/services/both.
- Other than services of Section 9(5).
- Through e-commerce operator required to collect TCS.
UrbanClap issues invoices on its own name and is not a medium of
consideration for supplier of services; hence the supplier of services
is not covered under Section 24(ix) and need not take compulsory
registration.
(3) The situation would have been different if the above transaction
was done in an Amazon model. Under Notification No. 65/2017-
C.T., dated 15-11-2017 a supplier of services with turnover less than
` 20 lakhs is exempted from registration requirements. Turnover ex-
ceeding ` 20 lakhs will call for registration though.
Hence in various e-commerce models; business model coupled with terms of
agreement turns out to be a crucial factor in determining GST registration especial-
ly on supplier’s end.

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GST LAW TIMES  27th August 2020  21