GST on E-Commerce Operator Services and Marketplace Commissions
With the rise of online shopping platforms like Amazon, Flipkart, Zomato, and Swiggy, the role of e-commerce operators in India’s economy has become more significant than ever. But with that growth comes compliance—and that’s where GST steps in. In this blog, we explain the gst on e commerce operator services, who is liable to pay it, and how it impacts sellers and platforms.
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Who Is an E-Commerce Operator?
As per GST law, an E-Commerce Operator (ECO) is any digital platform that:
- Facilitates the supply of goods or services
- Connects sellers and buyers
- Collects payment on behalf of sellers
Examples include marketplaces (Amazon, Flipkart), food delivery platforms (Swiggy, Zomato), and ride-hailing apps (Ola, Uber).
E-Commerce and GST: Basic Rules
| Service | GST Rate |
|---|---|
| Commission charged by ECO | 18% |
| Delivery charges (collected by ECO) | 18% |
| Listing, hosting, and tech fees | 18% |
| Restaurant service through ECO | 5% |
So, the gst on e commerce operator services like commissions, convenience fees, and hosting charges is 18%.
Who Pays GST: Seller or Platform?
- Marketplace Commission – GST is paid by the platform. Sellers can claim Input Tax Credit.
- Restaurant Orders – ECO collects and pays 5% GST on behalf of restaurants.
- Seller Sales – Sellers are responsible for charging GST, filing GST returns, and complying with TCS provisions.
TCS under GST for E-Commerce Operators
Platforms must collect TCS @1% on the net value of taxable supplies and deposit it with the government.
| TCS Rate | GST Type |
|---|---|
| 0.5% CGST + 0.5% SGST | Intra-state |
| 1% IGST | Inter-state |
Sellers can claim credit for TCS collected by the platform while filing GSTR-3B.
GST Registration for Sellers on E-Commerce Platforms
If you sell on an ECO like Flipkart, Amazon, or Zomato, GST registration is mandatory—even if your turnover is below ₹20 lakh. This is because Section 24 of the CGST Act overrides the exemption limit.
Input Tax Credit for Sellers
Sellers can claim ITC on:
- Platform commission GST
- Packaging and logistics
- Ads paid to the platform
- Warehouse or courier charges
Conclusion
Understanding the gst on e commerce operator services is crucial for sellers, platforms, and even end consumers. It ensures transparency in commissions, taxes, and compliance across India’s growing digital marketplace.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions (FAQs)
- What is the GST on e-commerce operator commission?Platforms charge 18% GST on commission, delivery fees, and related services.
- Who pays GST on food delivery through apps?The platform (like Zomato or Swiggy) collects and pays 5% GST on restaurant services.
- Is GST registration mandatory for sellers on Amazon or Flipkart?Yes, even small sellers must register under GST to sell on e-commerce platforms.
- What is the role of TCS in e-commerce and GST?Platforms must deduct 1% TCS on seller sales and deposit it with the government. Sellers can claim it in returns.
- Can sellers claim Input Tax Credit on platform charges?Yes, GST paid on commission and services is eligible for ITC.
