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What provision govern registration of E-Commerce operators under proposed GST law?
Ambica Sood
watch_later 24/12/16

Which provision under the proposed law govern E-Commerce sector? Does law specifies seperate provision requirements and what is the minimum threshold limit for obtaining registration for E-commerce operators?

1 Response | Latest response: 31/12/16 | Sort by Likes(thumb_up) Recent | GST Reply
Pulkit Sharma
watch_later 31/12/16
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Chapter-VI of Model GST Law governs the registration requirements. As per this chapter following persons are required to be registered under GST:


Every person who is liable to be registered under Schedule V of this Act shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration,in such manner and subject to such conditions as may be prescribed:

PROVIDED that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.

The section talks about persons specified in Schedule V. Persons specified in schedule V are liable to take registration. Please note above I have quoted only the first point. There are various provisions listed under Registration head.

On reading schedule V, point 6 of explanation which says:

  1. Notwithstanding anything contained in paragraph 1 and 3 above, the following categories of persons shall be required to be registered under this Act:      
  1. persons making any inter-State taxable supply, irrespective of the threshold specified under paragraph 1;
  2. casual taxable persons, irrespective of the threshold specified under paragraph 1;
  3. persons who are required to pay tax under reverse charge, irrespective of the threshold specified under paragraph 1;
  4. persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold specified under paragraph 1;
  5. non-resident taxable persons, irrespective of the threshold specified under paragraph 1;
  6. persons who are required to deduct tax under section 46, whether or not separately registered under this Act;
  7. persons who are required to collect tax under 56, whether or not separately registered under the Act;
  8. persons who supply goods and/or services on behalf of other taxable persons whether as an agent or otherwise, irrespective of the threshold specified under paragraph 1;
  9. input service distributor, whether or not separately registered under the Act;
  10. persons who supply goods and/or services, other than supplies specified under sub-section (4) of section 8 , through such electronic commerce operator who is required to collect tax at source under section 56, irrespective of the threshold specified in paragraph 1;
  11. every electronic commerce operator, irrespective of the threshold specified in paragraph 1;
  12. every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person; and
  13. such other person or class of persons as may be notified by the Central Government or a State Government on the recommendation of the Council.

Point vii and xi make registration compulsory for E-Commerce operators. Model GST Law makes every E-commerce operator liable for registration.

However looking at the complexity of nature of business, registration requirements for operators looks logical.

Compulsory registration will ensure online sellers get proper credit of withholding tax. Again TCS is made compulsory for operators, which automatically make them liable for registration.

Conclusion: GST registration is mendatory for E-Commerce operators.

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