New Tax Rule for E-commerce Operators

Scope: Electronic commerce operators must collect 1% of the net value of inter-State taxable supplies facilitated through their platforms. Authority: Mandated by the Integrated Goods and Services Tax Act, 2017, and Central Goods and Services Tax Act, 2017.

Purpose: To ensure tax compliance and streamline collection for supplies made by other suppliers via e-commerce platforms.

Applicability: Applies to all e-commerce operators, excluding agents, facilitating transactions where the operator collects consideration for inter-State taxable supplies. Implementation: Enforced by the Central Government based on recommendations from the Council.

Enforcement Officer: Gunjan Kumar Verma, Under Secretary to the Government of India. Impact: Aims to regulate taxation in the e-commerce sector and bolster revenue collection mechanisms.