As per the GST Law, a person who owns, operates and manages an E-Commerce platform is known as E-commerce operator and is liable to collect tax (Tax Collected at Source – TCS) from the supplier. For every taxable transaction done by the E-commerce operator on behalf of other suppliers through his platform, he is required to collect tax at 1% per transaction and deposit the same to the government. However, for an E-commerce operator liable to collect tax, he is required to be registered under GST, mandatorily.
Thus, if you are planning to venture into the world of E-commerce, here is:
How you can register as an E-commerce Operator in India
Registration
- Fill the E- application form REG-07 on the common portal.
- The application should be duly signed or verified through EVC (Electronic Verification Code)
- Submit the form, either directly or from the facilitation centres notified by the Commissioner
- The proper officer will grant registration after verification and issue a certificate of registration in FORM GST REG-06 within 3 working days from the date of submission of application
Cancellation of Registration
As per the updates effective February 1, 2019, the GST registration is mandatory only if the given E-commerce operator is liable to collect tax. Thus, if the authorised officer ascertains, through proceedings, that a person is not liable to collect tax, the officer can cancel his/her GST registration. The same shall be notified to the given person electronically via form GST REG- 08.
Registration for People Supplying Online Information from Outside India
Online Information and Database Access or Retrieval (OIDAR) services
Online information and Database Access or Retrieval Services [OIDAR] means services whose delivery is mediated through the internet. The supply is essentially automated involving minimal human intervention and impossible without information technology.
Application
OIDAR is applicable on any services delivered through the internet. Some of the popular examples are:
- Internet Advertising
- Cloud Services
- Media Streaming Services
- Electronic Data/Information Transfers
- Online Gaming
- Web-based services
Non-OIDAR services
Using the internet to communicate or facilitate the outcome of service can often be confused with OIDAR, which need not be the case every time. Thus few examples of non-OIDAR services are: Supplies of goods, where the order and processing is done electronically
- Supplies of newspapers, newsletters, journals, etc.
- Legal/Financial advice through mail.
- Booking/Hiring for Events, Hotels, Cars, etc.
- Services provided by a teacher for Online Educational/Professional courses.
- Remote Location services provided for repair of Hardware or Software.
- Advertising services in newspapers, on posters and on television
- Internet backbone services and internet access services
To Register as for OIDAR Services
- Fill the E- application form REG-10 on the common portal.
- The application should be duly signed or verified through EVC (Electronic Verification Code)
- Submit the form, either directly or from the facilitation centres notified by the Commissioner
- The proper officer will grant registration, in FORM GST REG-06, subject to such conditions and restrictions as may be notified by the Central Government on the recommendations of the Council.
For normal taxpayers, here is how you can register through the GSTN portal.
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