GST for electronic commerce operators: the complete obligation set
A platform carries tax risk it did not create, on transactions it cannot see the inside of.
An electronic commerce operator under Section 2(45) is a person who owns, operates or manages a digital or electronic facility or platform for electronic commerce. The obligations are compulsory registration under Section 24 in every State where supplies are facilitated, collection of tax at source under Section 52 at the notified rate on the net value of taxable supplies made through it, monthly and annual statements, and liability as the deemed supplier under Section 9(5) for notified services. Where the operator supplies on its own account, it is an ordinary supplier for those supplies.
The four hats a platform wears
Own account supplier: where the platform sells its own inventory, it is an ordinary supplier and TCS does not apply to those supplies.
Collector under Section 52: for supplies by other suppliers through the platform, it collects tax at source at the notified rate on the net value of taxable supplies, and files GSTR-8.
Deemed supplier under Section 9(5): for notified services, the platform pays the tax as if it were the supplier, and the actual supplier does not.
Facilitator: for everything else, it has reporting and record keeping obligations, including under Section 52(12) to furnish information when required.
Most platforms wear more than one hat simultaneously, and the systems must classify each transaction correctly at the point of order.
Registration and the state footprint
Registration is compulsory irrespective of turnover, in every State from which supplies are facilitated, and the threshold exemptions do not apply.
The operator must obtain registration in each State where the suppliers whose supplies it facilitates are located, in the manner the law requires, and the practical position on that has been the subject of clarification. Verify the current requirement.
Warehousing states create their own registration questions for both the platform and the sellers.
TCS is deposited State wise and reported State wise, which means the state allocation of every transaction has to be right at source.
Where platforms get into difficulty
Classifying a transaction as own account when it is facilitated, or the reverse, which changes the entire tax treatment.
TCS computed on gross value rather than net value of taxable supplies, or without adjusting returns.
Section 9(5) services not identified, so neither the platform nor the supplier pays.
Convenience fees, delivery charges and packaging charges treated inconsistently with the underlying supply.
Coupons, cashbacks and platform funded discounts treated as reductions in the supplier's value when they are not.
Seller onboarding without registration verification, which produces TCS on supplies by unregistered persons and a compliance failure for both.
Exhibit — Classifying a platform transaction
| Transaction | Who pays the tax on the supply | Platform's obligation |
|---|---|---|
| Platform sells own inventory | Platform, as supplier | Ordinary compliance; no TCS on own supplies |
| Registered seller sells goods through platform | Seller | TCS under Section 52, GSTR-8 |
| Notified service under Section 9(5) | Platform, as deemed supplier | Pay tax as supplier; no TCS on that supply |
| Platform commission charged to seller | Platform, as supplier of service | Ordinary invoice and tax |
| Convenience or delivery fee charged to customer | Depends on who supplies it | Classify at order level; composite supply analysis |
The classification has to happen at the point of order, in the system. It cannot be reconstructed at the end of the month.
What to do on Monday
Classify every transaction type at order level in the system — own account, facilitated, Section 9(5) — and document the mapping.
Verify seller registration status at onboarding and periodically thereafter.
Reconcile TCS collected, deposited and reported, State wise, every month.
Review the state registration footprint against the supplies actually facilitated each year.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
Is registration required in every state?
Registration is compulsory and the state footprint follows the supplies facilitated. Verify the current requirement, which has been clarified more than once.
Does TCS apply to our own sales?
No. TCS applies to supplies made by other suppliers through the platform.
What if a seller is unregistered?
Registration is compulsory for most sellers supplying through a platform, with limited exceptions. Verify status at onboarding.
Who pays on a Section 9(5) service?
The operator, as the deemed supplier, and TCS does not apply to that supply.
Are we liable for a seller's tax?
Not generally, but the TCS obligation, the Section 9(5) liability and the information obligations under Section 52(12) create real exposure.
In this cluster
- Section 52 tax collection at source: collection, credit and mismatch disputes
- Section 9(5) notified services and the platform as deemed supplier
- Cloud kitchens, food delivery and the restaurant service fiction
- Ride hailing, aggregators and the driver's registration question
- Marketplace sellers: registration, warehouse states and returns
- Coupons, cashbacks and platform funded discounts
- Convenience fees, delivery charges and composite supply on platforms
- Cross border digital supplies and the OIDAR overlap
- Influencer, creator and affiliate income under GST
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.