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 by way of waiver of requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions, such as-
Notification
Accordingly, the CBIC vide Notification no. 37/2023 - Central Tax dated August 04, 2023 has notified the 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 exempted from obtaining registration (hereinafter referred to as the said person) in accordance with the notification issued under sub-section (2) of section 23 vide notification number 34/2023- Central Tax, dated the 31st July, 2023.
The Notification specifies the following special procedure for E-commerce operator:
(i) the electronic commerce operator shall allow the supply of goods through it by the said person only if enrolment number has been allotted on the common portal to the said person;
(ii) the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;
(iii) the electronic commerce operator shall not collect tax at source under sub-section (1) of section 52 in respect of supply of goods made through it by the said person; and
(iv) 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.
Further, Where multiple electronic commerce operators are involved in a single supply of goods through electronic commerce operator platform, "the electronic commerce operator" shall mean the electronic commerce operator who finally releases the payment to the said person for the said supply made by the said person through him.
This notification shall come into force with effect from the 1st day of October, 2023.
