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What Is E-Commerce Under GST?

In the present business scenario, E-Commerce has become a widely accepted trend. How does GST for online businesses work? How does E-Commerce relate to GST Laws? Know more about international import and export and start your business with us. In electronic commerce, goods and services are delivered via digital or electronic means, including digital products.

Here is E-Commerce defined under GST:

According to GST Law, ‘electronic commerce’ is defined as the supply or receipt of goods and / or services, or the transmission of funds or data, over an electronic network, primarily the internet, through any application that relies on the internet, such as but not limited to e-mail, web services, shopping carts, electronic data interchange. A payment may be conducted online, but the operator may be responsible for delivering the goods or services. GST has been imposed on the “supply of goods and services.” It does not matter how a contract is negotiated, whether it is oral, written, or through electronic communication. GST remains the same whether it is negotiated orally, in writing or electronically.

Three parties are involved in every e-commerce transaction:

Seller
Buyer
E-Commerce Operator (ECO)

Any person providing goods or services through an e-commerce operator must become compulsorily registered, regardless of the threshold exemption limit. Did you like our article? Do share your feedback and experience. The above information is a part of Online Training Course of Digital Exim.