E-COMMERCE Introduction

SECTION : Electronic Commerce

  • Lesson Objectives

    On completion of this lesson, you will be able to understand:

    ·     Section 2(44) – Electronic Commerce

    ·   Section 2(45) – Electronic Commerce Operator

    ·      Exclusions

    ·     Registration Procedures in GST

    ·     Aggregator


    Please go through the First Video of the Chapter 8.

    Section 2(44) – “Electronic Commerce” means the supply of goods or services or both, including digital products over digital or electronic network.


    Section 2(45) – “Electronic Commerce Operator” means any person who owns, operates or manage 


    Electronic Commerce means the supply or receipt of goods and/or services, or transmitting of funds or data, over an electronic network, primarily the internet. There are various applications that can be used on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services etc.


    E-commerce include various technologies which include universal description Discovery and integration (UDDI), File Transfer Protocol (FTP) and Electronic Data Interchange (EDI) whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator.


    E-commerce operator

    An Electronic Commerce Operator (Operator) is a person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. A person providing any information or any other services incidental to or in connection with such supply of goods and services through electronic platform will be considered as an Operator.


    For instance, Amazon and Flipkart are e-commerce Operators because they are facilitating actual suppliers to supply goods through their platform (popularly called Market place model or Fulfillment Model).



    A person supplying goods/services on his own account, however, will not be considered as an Operator.


    Titan supplying watches and jewels through its own website will not be considered as an e-commerce operator for the purposes of this provision. Similarly Amazon and Flipkart will not be treated as e-commerce operators in relation to those supplies which they make on their own account (popularly called inventory Model).


    Mandatory Registration for E-commerce Operators

    The threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.


    Every E-commerce Operator is required to submit an application in FORM GST REG-07 for Grant of Registration. Proper officer may grant registration after verification and issue certificate of Registration in FORM GST REG-06 within 3 working days from the date of submission of application.


    If Proper officer is satisfied on the non-eligibility of E-commerce operator to deduct of tax at source Under Section 51 or collection of Tax under Section 52 then he may cancel registration and such cancellation shall be communicated to the said person electronically in FORM GST REG-08.



    An Aggregator to mean a person, who owns and manages an electronic platform, and by means of the application and communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator. For instance, Uber Cabs / Ola cabs would be an aggregator.


    Mandatory Registration for Aggregators

    The threshold exemption is not available to aggregators and they would be liable to be registered irrespective of the value of supply made by them.

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