Notification Notification 17/2017 Central Tax Rate dated 28th June 2017 provides for taxability of E commerce or Electronic Commerce operators i.e on Radio taxi and Hotels Only

Financial Year: 2017

Dear Friends

 

Govt has issued a notification on 28th June 2017 for 2 types of E-commerce Operators

 

(a) Radio Taxi

(b) Hotels

 

The notification says that intra state tax on these 2 services shall be paid by the Electronic Commerce operator like

 

(a) For Radio Taxi GST is to be paid by E Commerce operator (like Ola, Uber) and not the driver who is driving the car.

 

(b) (i) For hotel services GST is to be paid by hotel owner (or you can say Hotel itself) if he is registered under GST or

 

          If Hotel Owner is not registered in GST then GST is to be paid by the Oyo (or Any other E commerce operator) from whose platform booking has been conducted.

 

Please read complete notification from this link

 

Notification 17/2017 Central Tax Rate 

 

Author Comments:-

Radio Taxi and Hotels:-

Since radio taxi operators (drivers) and hotel owners are usually not educated and cant make GST Compliances, so government decided to exclude them from GST Compliances.

They have been specifically excluded from taking GST Registration requirements as well. They are covered under section 9(5) of CGST Act as per notification no 17/2017.

Radio Taxi and hotels are the only 2 services which has been provided through electronic commerce operators and are specifically excluded from taking mandatory registration as per Section 24(ix)

Although Hotel owners can themselves take registration and make compliances, It will be there option that whether they will take registration and make compliances but such option has not been provided in case of Radio Taxi Services,

In radio taxi services there will be mandatory GST Compliances on the part of electronic commerce operators.

 

 

Thanks

CA Rahul Gupta