This document defines key terms related to e-commerce and GST in India. It outlines different e-commerce models and explains that under GST all would be considered e-commerce operators. It discusses tax liability for different transaction types on e-commerce platforms. Finally, it notes some foreseeable challenges for e-commerce marketplaces under GST compliance requirements like TCS, database maintenance, valuation, and reconciliation.

1. SETH & ASSOCIATES
Chartered Accountants
New Delhi | Lucknow
www.sethspro.com
GST
E-Commerce

2. KEY DEFINITIONS
E-Commerce & E-Commerce operator
(44) “electronic commerce” means the supply of
goods or services or both, including digital products
over digital or electronic network;
(45) “electronic commerce operator” means any
person who owns, operates or manages digital or
electronic facility or platform for electronic
commerce;

3. E-Commerce Models
Someone else's goods
Marketplace
Self Goods
Normal Trader
Self Goods Normal Trader
Someone else's goods Marketplace
Someone else’s Services
Aggregator
NOTE
For the purposes of GST all the above models would be termed as an “E-Commerce”
operator since as per the definition any supply made over digital or electronic network
(related to other’s or own goods / services) would be termed as an e-commerce and
the person who owns, operates or manages the platform is called “E-commerce operator”

4. TAX LIABILITY
TYPE TRANSACTION Tax Liability
E-Commerce
Self Goods E-Commerce
Others Goods Others
Aggregator 1 Other’s Services E-Commerce
NOTE -
1. Notified sectors vide Notification 17/2017-Central Tax (Rate) dated 28th June, 2017
a.) Taxi
b.) Hotels
2. Government of India is yet to notify Sec 52 of the respective acts to enforce the
provisions of collection of TCS in case goods are sold through e-commerce operators. Till
the same is not notified there is no onus on the E-Commerce operator to collect such TCS
and deposit with the Government. Whenever enforced it is expected to be at 1%.

5. E-COMMERCE SEGMENT
Foreseeable Challenges - Marketplaces
TCS
Whenever the provisions of Sec 52 are
notified the implications of TCS would
have deep impacts. The cash flow of
the sellers would be curtailed by 2%
DATABASE
Maintenance of correct database of users
and suppliers is going to be the key ahead.
This would be the determining factor
between Inter state or Intra State levy.
Wrong levy would curtail cash flows.
VALUATION
Valuation of the various components
charged by the E-Commerce operator
would play an integral part of
discharging correct tax. Such as
freight and packing are levied extra
RECONCILIATION
Every Electronic commerce operator is
required under the Act to ensure the sales
on their portal reported match with the
sales as reported by the vendors listed.

6. COMPLIANCES
GSTR 1 (Outward Supply)
By 10th of next month
GSTR 2 (Inward Supply)
By 15th of next month after reconciling GSTR 1
GSTR 3 (Monthly Return)
By 20th of next month along with payment of tax
GSTR 8 (Monthly Return) if E-Commerce marketplace
By 10th of next month along with payment of tax
Monthly Returns

7. THANK YOU
Seth & Associates
Chartered Accountants
New Delhi | Lucknow
Dhruv Seth
(dhruv@sethspro.com)
This document is solely for the circulation to the clients of Seth & Associates and should not be construed as an solicitation of any kind. Any
forward to anyone who is not our client is not intended by us and we shall not be liable for the same.
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entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as
of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate
professional advice after a thorough examination of the particular situation.