The Central Board of Indirect Taxes and Customs (CBIC) has notified a special procedure for e-commerce operators (ECOs), in respect of supply of goods made through their platform by suppliers who are unregistered or exempted from obtaining registration. This procedure will be effective from October 1, 2023.
Special Procedure for Supply of Goods
According to the CBIC notification, the e-operators who are required to collect tax at source u/s 52 of the CGST Act, are required to follow prescribed procedure for the supply of goods made through their platform by unregistered/exempted suppliers as specified in Central Tax Notification 34/2023, as follows:
1. The e-commerce operator (ECO) can allow the supply of goods through their platform only if the supplier has obtained an enrollment number on the common GST portal.
2. The e-commerce operator cannot permit inter-state supply of goods by exempted/unregistered suppliers through their platform.
3. The e-commerce operator (ECO) shall not collect tax at source (TCS) u/s 52 of the CGST Act, for the supply of goods made by exempted/unregistered suppliers through their platform.
4. The e-commerce operator must electronically furnish the details of these supplies in FORM GSTR-8 on the common GST portal.
Where Multiple E-Commerce Operators Involved
In cases where multiple e-commerce operators are involved in a single supply of goods, the term “the e-commerce operator” refers to the operator who finally releases the payment to the exempted/unregistered supplier.
Effective Date of Special Procedure
This special procedure will come into effect from October 1, 2023.
CBIC Central Tax Notification 37/2023 dated 04/08/2023: Special Procedure for E-Commerce Operators regarding Unregistered/Exempted Suppliers
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