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Everything to Know About GST Compliance related to Supply through E-Commerce and by the E-Commerce Portals

In Today's market, E-Commerce Companies & start-ups are everywhere in the life of us. It is pertinent to mention here that E-commerce Portals are just facilitator of the Actual Supply between Supplier and Customer. Apart from Supply of Goods/Services by Actual Supplier to Consumer, E-Commerce Portals also supplies their own supplies to either Supplier or the Customer in the forms of Delivery Charges, Portal Fee etc.



There are Lakhs of Suppliers and in some of industries like Cab Service, Suppliers (Cab -Drivers) may belong to un-organised sector, therefore, to protect the revenue and to ease compliance, special provisions have been made with respect to E-Commerce Operators. In this article, we will discuss each and every thing about GST Compliance with respect to E-commerce industry.


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Article is divided in two Parts as below:



1. Where GST Needs to be Discharged by the Actual Supplier of Goods & Services


As a General Rule, Supplier need to pay GST on the supply of Goods and services to the consumer through portal as applicable to him except for some supplies as discussed in next Part of the Article. Therefore, in this Part, we will discuss what all GST compliance requirement need to be fulfilled by both Supplier of Goods & Services and the E-Commerce Portal.


GST Compliance in the Hand of Supplier


Registration Requirement of Supplier


Any person who wants to Supply Goods & Services through E-Commerce Portal need to take compulsory registration as per Section-24(1)(ix).


However, vide Notification-34/2023, Government has allowed the intra-state (not inter-state) supply of Goods (Not Services) by Un-registered Person through E-Commerce if his aggregate turnover is less than specified limit required for Registration subject to conditions prescribed in the Notification.


Similarly, earlier Suppliers under Composition Levy were not allowed to Supply through E-Commerce Portal except intra-state Supply where Portals were required to Pay GST. However, vide Finance Act, 2023, Now Composition Dealers have also been allowed intra-state (Not Inter-State) Supply of Goods (Services still not allowed except intra-state where E-Commerce Portals are required to Pay GST) on E-Commerce Portals.


Further, it is to be noted that where Supplier stores his goods in the fulfillment centre of Portal, then it needs to declare it as an Additional Place of Business if Fulfillment Centre (like Haryana) is situated in the same State as of Principle Registration (Haryana). In case, Fulfillment Centre is situated in different State (Haryana) from State of Principle Registration (Delhi), then New Registration will be required for storing goods in Fulfillment Centre.

Other GST Compliances:


Supplier need to comply with other compliances just like other normal taxpayers like Issuance of Invoice, Payment of GST, Filing of Returns etc.


GST Compliance in the Hand of E-Commerce Portal


It must be noted that in case where GST on Principal Supply of Goods/Services is need to be discharged by the Actual Supplier of Goods/Service, GST on the Supply of Services by the E-Commerce Portal like Convenience Fee, Portal Fee, Delivery Fee etc. need to be discharged by the Portal.


In addition to the same, Portal is also required to comply with TCS Provisions as discussed below.


Compliance of Tax Collected at Source (TCS) (Section-52)


When TCS is required to be collected from the Suppliers


Except for few services for which Portal itself is required to pay GST (as discussed in Next Section of the Article), in every case, E-Commerce Portal is required to collect 1% as TCS of "Net Value of Taxable Supplies" made through it by the Suppliers for which consideration from customers has been collected by the Portal.


Like Amazon need to deduct 1% of Net Value of Taxable Supplies made through Amazon from the Suppliers as Payment from customers is being collected by it.


Here Key words are:


Net Value of Taxable Supplies: Net Value of Taxable Supplies means Gross Supplies through Portal minus Returned by the consumers in a month.


TCS is only applicable where Payments from customers is being collected by the Portal.


TCS need to be deducted even if Suppliers are Un-Registered.


Other Compliance Requirements related to TCS

  1. E-Commerce Portal needs to take separate Registration for TCS Compliance Requirement apart from its normal Registration. (24(1)(ix).

  2. Payment of TCS by the Portal will only be through Cash Ledger.

  3. Portal needs to deposit TCS with the Government with in 10 days of the end of the month.

  4. Portal needs to file monthly GSTR-08 with in 10 days. Similarly, Annual Return need to be filed in GSTR-9B.

  5. Suppliers can claim such TCS in their Cash Ledger in terms of Rule 87(9) if they are Registered Persons.

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2. Where GST Needs to be Discharged by the E-Commerce Operator


As per Section-9(5) of CGST Act & Section-5(5) of IGST Act, 2017, Government may notify category of Services for which GST will be paid by the Electronic Commerce Operator and all the Provisions of the Act will apply to him like if he is the Supplier for such Service.


Under this Provision, only unorganised sector has been notified like Car Service (Ola, Under etc.) This Provisions has been made by the Government to shift the burden of compliance from unorganised Persons like Drivers to the E-Commerce Portals.


Updated List of Services as on date for which E-Commerce Companies need to pay GST


  • Services of Hotel Accommodation by Un-Registered Persons: 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 section 22 of the said Central Goods and Services Tax Act.


  • Services by way of house-keeping by Un-Registered Persons: such as plumbing, carpentering 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.


  • Restaurant Services Except by Specified Premise: Supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises. (Specified Premise means premises providing hotel accommodation service having declared tariff of any unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent).


  • Services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle, omnibus (except by Company) or any other motor vehicle.


In case of Omnibus Service, E-Commerce Portal needs to pay GST only if Bus Operator is not a Company.


For all other services whether they are Company or not or registered or un-registered, E-Commerce Portal needs to pay GST.


GST Compliance in the Hand of E-Commerce Portal


For these Services, E-Commerce Portal needs to act just like Supplier and fulfill all compliance requirements like issue of Invoices, Payment of GST etc.


Special Points


  • Supplies covered under Section 9(5), E-Commerce Portals are not required to deduct TCS under Section-52. However for all other Supplies, they will continue to deduct TCS as discussed above.

  • There is no need to take separate Registration for these supplies. Portals can discharge their Tax Payment in their regular GSTR-3B. For this necessary modification in GSTR-3B has been made:



  • GST against these services will be paid by the Portal through Cash only.

GST Compliance in the Hand of Supplier


A. In case Supplier does not have any Supply other than for Specified Services that is also only through E-Commerce Portals:


No GST Compliance Requirement in the hand of Supplier.


B. In Case Supplier has other Supplies or also Supplies other than through E-Commerce Portals


Registration Requirement: In this case, Supplier needs to take Registration if his Aggregate turnover is more than specified limit. For calculation of Aggregate Turnover, Supplies through E-Commerce will also be considered.


In case, He is Registered Person, he needs to fulfill all GST Compliances in respect of Supplies of Goods & Services other than Specified Services and Supply of Specified Services made through other than E-Commerce Portals.


Availability of ITC: For ITC purpose, Supplies of Specified Services through E-Commerce Portal would be considered as Exempt Supplies under Section 17(2). Accordingly, Taxpayer will not be eligible for ITC against such supplies. Further, Proportionate Reversal of Common ITC under Rule-42 & 43 is also required to be made.


GST Return: Taxpayer need to file their respective GST Return. Further, as depicted above, they need to report Supplies made of Specified Services through E-Commerce Portals in their GSTR-3B.


It is for this reason only, on the demand of Trade, Companies for Omnibus Services have been excluded from 2023 from the Specified Services so that they can avail ITC.


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For any other query, please raise in Comment Section.


Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. While due care has been taken by Fab Gyan in preparing this article, certain mistakes and omissions may creep in. The Fab Gyan or its Author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.

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