GST implementation is a reality, many states have already registered existing vat dealers. With respect to GST and E-Commerce sector:
- How E-commerce is defined under GST Law?
- How E-commerce operators such as Flipkart or Amazon among many others are placed?
We have different versions of Model GST Law, latest draft Model GST Law was revised in November 2016. GST law is yet not fully finalised.
Based on Draft Model GST Laws:
Electronic commerce means supply of goods and/or services including digital products over digital or electronic network
If we analyse this definition, refering to earlier Model Draft GST Law will give an insight. E-Commerce was defined as,
Electronic commerce shall mean the supply or receipt of goods and / or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the
internet, like but not limited to e-mail, instant messaging, shopping carts, Web services, Universal Description, Discovery and Integration (UDDI), File Transfer Protocol (FTP), and Electronic Data Interchange (EDI),
whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator.
The definition is wide enough to cover every transaction carried online. Again we should refer to taxability and definition of Good and supply, considering the consideration for such supplies.
With respect to E-commerce, e-commerce Operators are defined under model draft GST Law.
Electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
Electronic operator is defined as any person who owns, operates or manages the digital and electronic facility or platform for ecommerce. Flipkart, Amazon, Snapdeal or Paytm and other marketplaces are covered under this definition.
Further to extend this definition lets refer the previous deraft model GST Law.
Electronic commerce operator shall include every person who, directly or indirectly, owns, operates or manages an electronic platform that is engaged in facilitating the supply of any goods and/or services or in providing any information or any other services incidental to or in connection there with but shall not include persons engaged in supply of such goods and/or services on their own behalf.
The definition covers both Aggregator and market places.
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