The GST Council in its 47th meeting had granted In-principal approval for relaxation in the provisions for suppliers making supplies through E-Commerce Operators (ECOs) as a Measure for Trade facilitation such as Composition taxpayers would be allowed to make intra-State supply through e-commerce operators subject to certain conditions.
Accordingly, Section 137 of the Finance Act, 2023 amended Section 10 of the Central Goods and Services Tax Act, 2017 so as to allow the composition taxpayer to make intra-state supply of goods through E-commerce platforms.
Notification:
Accordingly, the CBIC vide Notification no. 37/2023 - Central Tax dated August 04, 2023 has notified electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the special procedure in respect of supply of goods made through it by the persons paying tax under section 10 of the said Act.
The Notification specifies the following special procedure for E-commerce operator:
(i) the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;
(ii) the electronic commerce operator shall collect tax at source under sub-section (1) of section 52 of the said Act in respect of supply of goods made through it by the said person and pay to the Government as per provisions of sub-section (3) of section 52 of the said Act; and
(iii) the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.
This notification shall come into force with effect from the 1st day of October, 2023.
