Notification No. 65/2017 – Central Tax Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 65/2017 – Central Tax: Seeks to exempt suppliers of services through an e-commerce platform from obtaining compulsory registration

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 sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council,

hereby specifies the persons making supplies of services, other than supplies specified under sub- section (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year, as the category of persons exempted from obtaining registration under the said Act:

Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.

(Dr. Sree Parvathy S.L.)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 65/2017 – Central Tax

Q1: What is Notification No. 65/2017 – Central Tax?

Answer:
Notification No. 65/2017 – Central Tax exempts small service providers supplying services through e-commerce platforms from mandatory GST registration if their turnover does not exceed ₹20 lakh.

Q2: When was Notification No. 65/2017 issued?

Answer:
It was issued on 15 November 2017 by the Government of India under the CGST Act, 2017.

Q3: Who benefits from this notification?

Answer:
The notification benefits small service providers using e-commerce platforms, such as freelancers, consultants, and professionals.

Q4: What is the GST registration threshold under this notification?

Answer:
The threshold is:
₹20 lakh for normal states
₹10 lakh for special category states

Q5: Does this exemption apply to goods sold on e-commerce platforms?

Answer:
No. This notification applies only to suppliers of services, not suppliers of goods.

Q6: Does this exemption apply to services under Section 9(5)?

Answer:
No. Services covered under Section 9(5) are excluded because the e-commerce operator pays GST on behalf of the supplier.

Q7: What is Section 52 of the CGST Act?

Answer:
Section 52 requires e-commerce operators to collect Tax Collected at Source (TCS) on transactions made through their platforms.

Q8: Do freelancers need GST registration under this notification?

Answer:
Freelancers supplying services through online platforms do not need GST registration if their turnover is below ₹20 lakh.

Q9: What happens if turnover exceeds ₹20 lakh?

Answer:
Once turnover crosses ₹20 lakh, GST registration becomes mandatory.
Businesses can register easily through:
https://finodha.in/online-gst-registration/

Q10: Do service providers still need to maintain invoices?

Answer:
Yes. Even without GST registration, businesses should maintain proper records of income and invoices.

Q11: How does this notification support the gig economy?

Answer:
It allows freelancers and small professionals to work through digital platforms without complex GST compliance, encouraging entrepreneurship.

Q12: Can service providers voluntarily register for GST?

Answer:
Yes. Even if turnover is below ₹20 lakh, a person can voluntarily register for GST.

Q13: How should service providers handle income tax on such income?

Answer:
Income from services must still be reported in Income Tax Returns (ITR).
You can file ITR easily through:
https://finodha.in/income-tax-return-filing-online/

Q14: What compliance should e-commerce service providers follow?

Answer:
They should:
Track turnover
Maintain transaction records
Understand GST thresholds
Register when required
Finodha experts can help ensure compliance:
https://finodha.in/gst-compliance/

Q15: Why is Notification No. 65/2017 important?

Answer:
It removed unnecessary GST registration requirements for small service providers using e-commerce platforms, making it easier for freelancers and startups to operate.

Conclusion

Notification No. 65/2017 – Central Tax played an important role in simplifying GST compliance for small service providers working through e-commerce platforms.

By allowing exemption from compulsory GST registration below the threshold limit, the government supported freelancers, startups, and the digital economy.