Register your e-commerce operation under GST - correctly and completely

An E-Commerce Operator (ECO) is any person who owns, operates, or manages a digital or electronic platform enabling the supply of goods or services by other persons. Under Section 2(27) of CGST Act, 2017, this includes Amazon, Flipkart, Swiggy, Zomato, Ola, and similar platforms. ECOs must collect TCS at 1% (0.5% CGST + 0.5% SGST/UTGST) on net value of supplies made through their platform.

Yes. Under Section 24 of the CGST Act, 2017, ECO registration is mandatory regardless of turnover. There is no ₹20 lakh or ₹40 lakh threshold. Every person operating an e-commerce platform enabling third-party sales must obtain GSTIN. Operating without registration attracts a penalty of ₹10,000 or the amount of tax evaded under Section 125.

ECO registration (via REG-07) is specifically for platform operators enabling third-party sales. Key differences: (1) No turnover threshold for ECOs, (2) ECOs must collect TCS at 1%, (3) ECOs must file both GSTR-3B and GSTR-8 monthly, (4) ECOs must issue Form 16B annually to suppliers. Regular GST registration does not have these additional obligations.

TCS (Tax Collected at Source) is tax collected by an ECO at 1% on the net value of taxable supplies made through its platform. The rate is 0.5% CGST + 0.5% SGST/UTGST for intra-state supplies, and 1% IGST for inter-state supplies. The ECO must remit this TCS to the government and issue Form 16B annually to each supplier, who can then claim it as ITC.

GSTR-8 is the monthly return filed by an ECO. It contains details of supplies made through the e-commerce platform and the TCS collected on those supplies. The due date is the 10th of the following month. Late filing attracts a late fee of ₹100 under CGST + ₹100 under SGST/UTGST per day, up to a maximum based on the amount of TCS not collected.

Form 16B is the annual TCS certificate issued by an ECO to each supplier. It certifies the amount of TCS deducted during the financial year. Suppliers need Form 16B to claim the TCS as Input Tax Credit (ITC) in their GSTR-3B. Without Form 16B, suppliers cannot claim ITC for TCS deducted by the ECO.

REG-07 is the specific application form for ECO GST registration on the GST portal. It is filed under Section 24 of the CGST Act. Unlike regular GST registration (REG-01), REG-07 requires additional details about the e-commerce platform, nature of services provided, and TCS applicability.

Yes. If you both operate a marketplace (enabling third-party sales) and sell your own products, you need ECO registration for the marketplace activity and may also need regular registration for your own sales. You would have a single GSTIN with ECO registration, but your GSTR-1 and GSTR-3B must reflect both types of supplies correctly.

Under Section 125 of the CGST Act, 2017, operating as an ECO without GST registration attracts a penalty of ₹10,000 or the amount of tax evaded (TCS not collected), whichever is higher. Additionally, non-filing of GSTR-8 for consecutive months can trigger a show-cause notice and potential GSTIN cancellation.

Yes. Aggregators that provide services through a digital platform and collect consideration from recipients of such services fall under the definition of ECO under Section 2(27). Swiggy, Zomato, Ola, Uber, and similar platforms must register as ECOs and collect TCS on the services provided through their platforms.

Net value of supplies = Gross value of all supplies made through the e-commerce platform minus the value of returns of supplies. Only the net amount is used for TCS calculation. If a supplier returns goods worth ₹50,000 on gross sales of ₹10 lakh, TCS is calculated on ₹9.5 lakh.

The supplier claims TCS credit in their GSTR-3B under the 'TCS credit' section. The TCS credit must match the amount shown in Form 16B issued by the ECO. If there is a mismatch, the GST department will flag it. The supplier can verify the TCS credit by checking their GSTR-2B - it appears under the 'TDS and TCS details' section.

Mismatches between GSTR-8 and supplier GSTR-2B can arise due to: wrong GSTIN entered, incorrect invoice value, or timing differences. We proactively reconcile your GSTR-8 data with supplier claims and notify mismatches early. Correcting GSTR-8 for previous months is possible by filing an amended GSTR-8.

No. Unlike regular GST registration (threshold of ₹40 lakh for goods, ₹20 lakh for services, ₹10 lakh for special category states), ECO registration is mandatory with zero turnover threshold. Even if your platform has no transactions or negligible turnover, registration is mandatory under Section 24.

Yes. A non-resident e-commerce operator making taxable supplies in India through a digital platform must obtain GST registration. They can apply online on the GST portal without a DSC (using Aadhaar-based e-KYC) if they have no place of business in India. They need to appoint an authorized signatory in India.