Page 13 - Chapter 10 Registration

made through such electronic commerce operator who is required to collect tax at are entitled for threshold exemption.
source. Since Hi-Tech Indya Pvt. Ltd. owns and manages a website for e commerce
But, Person making supply of services, other than supplies specified under sec 9(5) of where both goods and services are supplied, it will be classified as an ECO under
the said Act through E-commerce operator who is required to collect TCS under Sec section 2(45).
52 of the said Act, is eligible for threshold `20 lakhs (`10 lakhs in 4 special catagory Notification No. 17/2017 issued under section 9(5) specifies services by way
of states namely, States of Manipur, Mizoram, Nagaland, Tripura) of house-keeping, except where the person supplying such service through ECO is

liable for registration under section 22(1), as one such service where the ECO is liable
CCP 10.04.17.00 to pay tax on behalf of the suppliers.

AB Pvt. Ltd., Pune provides house-keeping services. The company supplies its In the given case, AB Pvt. Ltd. provides house-keeping services through an
services exclusively through an e-commerce website owned and managed by Hi- ECO. It is presumed that Hi-Tech Indya is an ECO which is required to collect tax at
Tech Indya Pvt. Ltd., Pune. The turnover of AB Pvt. Ltd. in the current financial source under section 52 . However, house-keeping services provided by AB Pvt. Ltd.,
year is ` 18 lakh. which is not liable for registration under section 22(1) as its turnover is less than ` Ch10
Advise AB Pvt. Ltd. as to whether they are required to obtain GST registration. 20 lakh, is a service notified under section 9(5).
Registration
Will your advice be any different if AB Pvt. Ltd. sells readymade garments Thus, AB Pvt. Ltd. will be entitled for threshold exemption for registration
exclusively through the e-commerce website owned and managed by Hi-Tech and will not be required to obtain registration even though it supplies services through
Indya Pvt. Ltd [ICAI Material](CA final MTP Aug 2018) ECO
Answer: As per section 22 of the CGST Act every supplier of goods or services or both In the second case , AB Pvt. Ltd. sells readymade garments through ECO.
is required to obtain registration in the State/ Union territory from where he makes Such supply cannot be notified under section 9(5) as only supplies of services are
the taxable supply if his aggregate turnover exceeds ` 20 lakh (`10 lakhs in 4 special notified under that section.

catagory of states namely, States of Manipur, Mizoram, Nagaland, Tripura) in a Therefore, in the second case, AB Pvt. Ltd. will not be entitled for threshold
financial year. exemption and will have to compulsorily obtain registration in terms of section
However, As per section 24 of the said Act , Persons who supply goods or 24(ix) .
services or both through such electronic commerce operator (ECO), who is required to
collect tax at source under section 52 , required to obtain compulsory registration. 05. Sec 25 Procedure for registration
But, Person making supply of services, other than supplies specified under sec CCP 10.05.18.00

9(5) of the said Act through E-commerce operator who is required to collect TCS State the time period within which registration needs to be obtained in each of
under Sec 52 of the said Act, is eligible for threshold `20 lakhs (`10 lakhs in 4 the following independent cases:
special catagory of states namely, States of Manipur, Mizoram, Nagaland, Tripura) (a) Person liable to register u/s 22 or 24
However, where the ECO is liable to pay tax on behalf of the suppliers of (b) Casual Taxable Person or NRTP
services under a notification issued under section 9(5) , the suppliers of such services (c) Person making inter-State taxable supply

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CA Final GST Questioner