Chhajer Yash & Co.

E-commerce GST

Two entirely different provisions govern e-commerce platforms, and mixing them up leads to real confusion about who actually owes what. One has the platform collecting tax on someone else’s behalf. The other has the platform paying the tax itself, as if it made the sale.

GST Compliance

E-commerce GST

Restaurant & Hospitality GST

Real Estate GST

Export Refund

GST Registration

Input Tax Credit: The Rules

Notified categories and TCS rates can change. This article is for general information and does not constitute tax advice.

Two Mechanisms, Often Confused

Under Section 52, an e-commerce operator collects Tax Collected at Source on sales made through its platform by other registered sellers — an advance collection mechanism, not a liability shift; the seller still computes and pays their own actual GST. Under Section 9(5), for a specific notified list of services, the operator itself becomes the deemed supplier, paying GST directly as if it had made the supply, and the underlying service provider doesn’t pay GST on that transaction at all.

Section 52: TCS on Regular Marketplace Sales

TCS is currently 0.5% (0.25% CGST + 0.25% SGST intra-state, or 0.5% IGST inter-state), reduced from an earlier 1% effective 10 July 2024. Calculated on net value of taxable supplies (aggregate sales less returns for the month), reported through Form GSTR-8, due by the 10th of the following month. A composition scheme seller can sell through such a platform, but the operator still collects TCS, and specifically must not allow that seller to make inter-state supplies through the platform.

Section 9(5): Where the Platform Itself Becomes the Supplier

Notified categories include passenger transport via cab aggregators, housekeeping services, hotel accommodation booked through unregistered suppliers, and restaurant services including cloud kitchens. This applies regardless of whether the underlying supplier is even GST-registered — individual drivers and small food businesses can participate without needing their own registration for this specific purpose. E-commerce operator registration is mandatory regardless of turnover, with no threshold exemption, a stricter requirement than almost any other GST registration category.

FAQs: E-commerce GST

When selling through an e-commerce platform, does the seller pay GST, or does the platform handle it entirely?

It depends on what’s being sold. For most regular marketplace goods, the platform collects a small TCS as an advance, but the seller still pays their own GST. For notified services, the platform itself is liable and pays directly.

As a driver for a cab aggregator, is separate GST registration and payment required?

No, for these notified services under Section 9(5), the platform itself is liable to pay GST, regardless of the driver’s own registration status.

Does TCS under Section 52 mean the seller doesn’t need to pay their own GST at all?

No, TCS is only an advance collection. Sellers still compute and pay their own actual liability; the TCS collected gets credited against it.

Is there a turnover threshold below which an e-commerce operator doesn’t need to register?

No, registration is mandatory regardless of turnover, with no exemption at all.

Can the e-commerce operator claim ITC on Section 9(5) supplies?

Yes, since it’s treated as the deemed supplier for those services, it can claim ITC on eligible inputs and input services used to provide them.

Last updated on 11 August 2026