Electronic commerce operator: As per Section 9(5) of the CGST Act, 2017, the Government has been given the power to notify certain categories of services wherein the tax on intra-State supplies will be paid by the electronic commerce operator if the services are provided through it. All the provisions of the law will apply to the electronic commerce operator as if he is the person liable for paying tax in relation to the supply of the services. A similar provision has been kept in Section 5(5) of the IGST Act, 2017 in respect of inter-State supplies. It may be noted here that only the notified supplies will be subject to this provision.
The Government has issued two sets of notifications till date in each of the Acts for notifying the list of services. Vide Notification no. 17/2017-Central Tax (Rate) dated 28th June 2017, Notification no. 14/2017- Integrated Tax (Rate) dated 28th June 2017 read with Notification no. 23/2017-Central Tax (Rate) dated 22nd August 2017 and Notification no. 23/2017 Integrated Tax (Rate) dated 22nd August 2017, the Government notified the following supplies on which electronic commerce operator will be liable to pay tax:
i. services by way of transportation of passengers by a radio-taxi, motor cab, maxi cab and motor cycle;
Example – Uber provides platform through which the drivers provide services of transportation of passengers. In this situation, Uber will be liable to pay the tax and not the driver
services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said CGST Act. Example – Oyo rooms provides its portal through which hotels can be booked by a customer. The person liable to pay tax will be Oyo rooms provided the hotel itself is not liable to register due to the exceeding of the threshold limit of turnover under GST
services by way of house-keeping, such as plumbing, carpentering etc, except where the person supplying such service through electronic commerce operator is liable for registration under subsection (1) of section 22 of the said CGST Act. Example – Urban clap provides a platform through which the customers can order for various housekeeping services such as plumbing, carpentering etc. Even though the person providing services are actually the ones who perform the housekeeping services, the person liable to pay tax will be Urban Clap. This is because the services are provided through such application.