Important Keywords: Notification 37/2023 CT, Notification No. 37/2023 – Central Tax, Special procedure, ECO, Electronic commerce operators, Unregistered persons, F. No. CBIC-20006/20/2023-GST, Section 148 CGST, Notification No. 34/2023 Central Tax, Section 52(1),
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Table of Contents
[F. No. CBIC-20006/20/2023-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
New Delhi, dated the 4th August, 2023
Notification No. 37/2023 – Central Tax: Seeks to notify special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by unregistered persons.
GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
G.S.R. (E):— In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council,
hereby notifies the electronic commerce operator who is required to collect tax at source under section 52 as the class of persons who shall follow the following special procedure in respect of supply of goods made through it by the persons exempted from obtaining registration (hereinafter referred to as the said person) in accordance with the notification issued under sub-section (2) of section 23 vide notification number 34/2023- Central Tax, dated the 31st July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 577(E), dated the 31st July, 2023, namely: —
- the electronic commerce operator shall allow the supply of goods through it by the said person only if enrolment number has been allotted on the common portal to the said person;
- the electronic commerce operator shall not allow any inter-State supply of goods through it by the said person;
- the electronic commerce operator shall not collect tax at source under sub-section (1) of section 52 in respect of supply of goods made through it by the said person; and
- the electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.
2. Where multiple electronic commerce operators are involved in a single supply of goods through electronic commerce operator platform, “the electronic commerce operator” shall mean the electronic commerce operator who finally releases the payment to the said person for the said supply made by the said person through him.
3. This notification shall come into force with effect from the 1st day of October, 2023.
(Alok Kumar)
Director
Frequently Asked Questions
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What is Notification No. 37/2023 – Central Tax?
Notification No. 37/2023 – Central Tax is a regulation that establishes a special procedure for electronic commerce operators (ECO) regarding the supplies of goods made through them by unregistered persons.
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How does Notification 37/2023 CT affect electronic commerce operators?
Notification 37/2023 CT requires electronic commerce operators to comply with a special procedure for collecting and remitting tax on supplies made by unregistered persons, ensuring proper tax compliance.
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What is the special procedure outlined in Notification No. 37/2023 – Central Tax?
The special procedure outlined in Notification No. 37/2023 – Central Tax involves electronic commerce operators ensuring tax collection at source for sales made by unregistered persons, facilitating accurate tax reporting.
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Who qualifies as an unregistered person under Notification 37/2023 CT?
An unregistered person under Notification 37/2023 CT is an individual or entity that is not registered under the Goods and Services Tax (GST) and is selling goods through electronic commerce operators.
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What responsibilities do electronic commerce operators have under the special procedure?
Under the special procedure, electronic commerce operators must collect tax at source from unregistered persons, maintain records of such transactions, and remit the collected tax to the government.
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How can an electronic commerce operator comply with Notification No. 37/2023 – Central Tax?
An electronic commerce operator can comply with Notification No. 37/2023 – Central Tax by implementing necessary systems to track transactions, ensuring timely tax collection, and filing appropriate returns as required.
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Are there penalties for non-compliance with Notification 37/2023 CT?
Yes, electronic commerce operators may face penalties for non-compliance with Notification 37/2023 CT, including fines and potential legal action for failure to collect and remit the correct taxes.
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What measures should electronic commerce operators take to educate unregistered persons about their obligations?
Electronic commerce operators should provide clear communication and resources to unregistered persons about their tax obligations, the special procedure under Notification No. 37/2023 – Central Tax, and the importance of compliance.
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How does Notification 37/2023 CT impact the overall tax ecosystem?
Notification 37/2023 CT enhances the tax ecosystem by ensuring that sales through electronic commerce operators are taxed appropriately, thereby increasing tax compliance and revenue generation for the government.
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Where can electronic commerce operators find more information about Notification No. 37/2023 – Central Tax?
Electronic commerce operators can find more information about Notification No. 37/2023 – Central Tax on the official GST portal or through guidance provided by tax consultants and legal advisors specializing in GST compliance.
Read More: Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017.
Download Pdf: https://taxinformation.cbic.gov.in/
