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(45) 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, for an e-commerce operator that is required to collect tax at source under Section 52 (Section 24(x) of the CGST Act, 2017), or that is liable to pay tax under Section 9(5): registration is mandatory irrespective of turnover, with no ₹20 lakh or ₹40 lakh threshold. Failing to register when liable attracts a penalty of ₹10,000 or the amount of tax evaded, whichever is higher, under Section 122.

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 0.5% (from 10 July 2024), (3) ECOs must file both GSTR-3B and GSTR-8 monthly, (4) the TCS they report in GSTR-8 is credited to each supplier on the GST portal. Regular GST registration does not have these additional obligations.

TCS (Tax Collected at Source) under Section 52 is tax collected by an ECO on the net value of taxable supplies made through its platform by other suppliers, where the ECO collects the payment. From 10 July 2024 the rate is 0.5%: 0.25% CGST + 0.25% SGST/UTGST for intra-State supplies, or 0.5% IGST for inter-State supplies (it was 1% before). The ECO pays it to the government by the 10th of the next month and reports it in GSTR-8. Suppliers accept it on the portal and it is credited to their electronic cash ledger.

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 of ₹5,000 under CGST plus an equal amount under SGST/UTGST (Section 47(1), which covers section 52 statements since the Finance Act, 2022).

No. Form 16B is an income-tax TDS certificate and has no role in GST. Under GST there is no separate TCS certificate. The TCS reported by the ECO in GSTR-8 shows on each supplier's GST portal; the supplier accepts it, and it is credited to the supplier's electronic cash ledger, where it can be used to pay GST.

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(45). 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 sees the TCS reported by the ECO in GSTR-8 under 'TDS and TCS Credit Received' on the GST portal. The supplier accepts or rejects each entry and files that statement; accepted TCS is credited to the electronic cash ledger and can be used to pay tax. Rejected entries go back to the ECO for correction in GSTR-8. TCS is not input tax credit.

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 (₹20 lakh generally, ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura; ₹40 lakh for goods-only suppliers in most States), an e-commerce operator required to collect tax at source under Section 52 must register with no turnover threshold, even if its turnover is negligible.

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.