iv) Reverse Charge for Services provided by Electronic Commerce Operator –
Section 2(45) of the CGST Act defines Electronic Commerce Operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
Notification 17/2017 – Central Tax (Rate) dt. 28th June, 2017 provides that in the following categories of services, the tax on intra-State supplies shall be paid by the electronic commerce operator –
(i) services by way of transportation of passengers by a radio –taxi , motor cab, maxicab and motor cycle ;
(ii) 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 Central Goods and Services Tax Act.
Explanation –
For the purposes of this notification, –
(a) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two -way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS);
(b) “maxicab”, “motorcab” and “motor cycle” shall have the same meanings as assigned to them respectively in clauses (22), (25) and (26) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988)
(c) 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 sub-section (1) of Section 22 of the CGST Act.
Thus, the normal taxi drivers where the customer directly contacts the taxi driver and gets the services, are not covered under RCM. However, if the customer contacts third person who controls the taxi drivers and gets the services, the act will be covered under RCM and the tax will be payable by the Electronic Commerce Operator.
Similarly, if the house keeping service provider is not liable for registration and if such services are obtained through Electronic Commerce Operator, the tax will be paid by such Electronic Commerce Operator.