Home Case Index All Cases GST GST + AAR GST - 2024 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 261 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKACollection of tax at source u/s 52 - Electronic commerce operator - Exclusion of "Agent" - Exemption under Notification No. 52/2018 - Whether applicant, who only collects a commission as a percentage of the value of digital gold sold through its platform and the entire sale proceeds are paid directly to seller of Digital gold through an Escrow account would qualify him as an 'Agent' for the purpose of GST law and is therefore not covered by applicability of Notification No. 52/2018 - Central Tax, read with Section 52 of Central Goods and Services Tax, 2017 and corresponding state Notification 20/2018 (Karnataka) read with Section 52 of Karnataka Goods and Services Tax, 2017? - HELD THAT:- The applicant, quoting Section 52 of the CGST Act 2017 that deals with collection of tax at source and Section 2(45) of the CGST Act 2017 which defines “electronic commerce operator” contends that Section 52 excludes the 'agent' from its purview; their obligation is only to provide platform between the customer and the seller DGIPL as per article 2.2.1 of the agreement; correlating e-commerce operator and an agent with that of the tour operator and travel agent respectively submits that e-commerce operator is comparable to tour operator and is referred to as “Principal” as they take responsibility of their service whereas the agent is comparable to the Travel agent and do not act as a “Principal” as they don't take responsibility of the service but mere provide intended / selected service and thereby claims that they qualify to be a “Selling Agent”; quoting different clauses of the agreement, the applicant contends that they are merely acting as an agent for DGIPL, and the operation carried out by them is beyond the scope of Section 52. The applicant, in comparison with e-commerce operators such as amazon etc., contends that they do not assume any responsibility; they do not collect any platform fee from the seller DGIPL; they charge only commission at a rate percent of the value of digital gold sold; they transact only single product at present through the app and thus they claim that they are a selling agent but not an e-commerce operator & therefore they are excluded from the purview of Section 52 of the CGST Act 2017. Whether applicant is required to obtain registration as an E-commerce operator as per provisions of Rule 12 of Central Goods and Services Tax Rules, 2017? - HELD THAT:- The applicant, being an electronic commerce operator, is required to collect tax at source under Section 52 of the CGST Act 2017 and thus is liable to be registered compulsorily under Section 24(x) of the CGST Act 2017 read with the provisions of the Rule 12 of CGST Rules 2017.
|