Obligations in respect of supplies made through e-commerce route:
All supplies of goods and / or services, whether through e-commerce route or otherwise, are subject to payment of CGST & SGST if the supplies are treated as intrastate supplies or payment of IGST if the supplies are treated as inter-state supplies in terms of section3 and 3A of the IGST Act respectively. The suppliers are eligible for the benefit of threshold exemption provided in the MGL. Section 19 r/w Schedule-III of the MGL, however, provides that the threshold exemption is not available to inter alia following categories of suppliers:
(i) person making inter-state supplies;
(ii) person supplying goods and / or services, other than branded services, through e-commerce Operator;
(iii) every electronic commerce Operator;
(iv) aggregator providing branded services under his brand name or trade name.
It may be seen that the actual supplier of goods and / or services and e-commerce operator making supplies of goods and / or services on his own account would be liable to discharge liability of GST in respect of supplies made by them and they are even not eligible for any threshold benefit either. They are liable to comply with all the obligations cast on normal suppliers under MGL / IGST Act like obtaining registration, payment of GST, filing of periodical returns, etc.
A separate category of supplier of branded services has also been provided in the MGL. The aggregator providing a branded service under his brand name or trade name would be responsible for payment of GST instead of the actual supplier of service. This concept has been borrowed from the present service tax law. Companies like Ola, Uber would get covered under this provision. Section 43(a), 43(c) and 43(b) of the MGL defines aggregator, branded services and brand name / trade name respectively..