Background:
Earlier, the GST Council in its 47th meeting had granted in-principle approval for allowing unregistered suppliers to make the intra-state supply of goods through e-commerce operators, so as to empower small traders who are below the GST threshold limit to expand their business through e-commerce platforms.
Notification
Now, the CBIC vide Notification no. 37/2023 – Central Tax dated August 04, 2023, in exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) notifies the electronic commerce operator as the class of persons who shall follow the special procedure in respect of supply of goods made through it by unregistered person.
The Notification specifies special procedure for E-commerce operator:
i. The unregistered person shall be allowed to supply goods only after allotment of enrolment number by common portal;
ii. E-commerce operator shall not allow inter-state supply of goods to unregistered person ;
iii. The E-commerce operator shall not collect any Tax at source (TCS) under Section 52 of CGST Act in relation to the supply of goods made through the unregistered person; and
iv. The E-commerce operator shall furnish all the details of supplies made through unregistered person in the statement in FORM GSTR-8 electronically on common portal.
Further, it has been notified that where multiple E-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 unregistered supplier.
The Notification is effective from October 01, 2023.
The Notification can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/08/Notification-No.-37-2023-Central-Tax-dated-August-04-2023.pdf
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