GST Updates for Ecommerce Sellers
CBIC notifications and circulars and GSTN advisories that change how marketplace and D2C sellers charge, claim or report GST. Each page pairs a plain-English summary with the official text, which you can search here.
All GST Updates
Section, rule and entry numbers work as typed, e.g. 89(5), 194-O or ₹2,500.
27 updates
Circular No. 265/11/2026-GST.Medium impact
GST clarifications on toys, sublimation paper, used vehicle margin scheme ITC and sea-weed bio-stimulants
Issued Official text · Summary prepared automatically
CBIC Circular No. 265/11/2026-GST clarifies that S. No. 497 of Schedule I (5%, toys other than electronic toys) and S. No. 616 of Schedule II (18%, electronic toys) of notification No. 09/2025-C.T.R. cover all categories of toys in heading 9503, such as dolls, scale models and puzzles, and are not restricted to tricycles, scooters and pedal cars. It also clarifies that sublimation paper falls under heading 4809 attracting 18% GST, that suppliers of old and used motor vehicles under the margin scheme notifications may avail ITC on inputs (other than the vehicles) and input services, and that registered sea-weed extract based bio-stimulants fall under heading 3101. The circular is dated 28 October 2026 and does not state a separate effective date. Online sellers of toys and of sublimation paper are the ecommerce sellers most directly concerned.
Read the summary and full text: GST clarifications on toys, sublimation paper, used vehicle margin scheme ITC and sea-weed bio-stimulantsOfficial PDF(opens in a new tab)
Notification No. 02/2026-Central Tax (Rate)Medium impact
Retreaded tractor tyres moved to the 2.5% central tax schedule; fertiliser entry revised to name sea-weed bio-stimulants
Issued Official text · Summary prepared automatically
Notification No. 02/2026-Central Tax (Rate) amends Notification No. 9/2025-Central Tax (Rate) in three ways. It inserts retreaded tractor tyres (heading 4012) as S.No. 272A in Schedule I (2.5%). It excludes retreaded tractor tyres from the Schedule II (9%) entry at S.No. 138, and it substitutes the Schedule I entry at S.No. 237 for pre-packaged and labelled animal, vegetable or organic fertilisers, adding an explanation that the entry includes sea-weed extract based bio-stimulants registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985. The changes come into force on 1 November 2026 and affect only sellers of these tyres or fertiliser products; for other ecommerce sellers the notification makes no change.
Read the summary and full text: Retreaded tractor tyres moved to the 2.5% central tax schedule; fertiliser entry revised to name sea-weed bio-stimulantsOfficial PDF(opens in a new tab)
Notification No. 03/2026-Central Tax (Rate)Medium impact
Psyllium seeds (Isobgul/Isobgol) inserted in the Schedule of GST notification 10/2025-Central Tax (Rate)
Issued Official text · Summary prepared automatically
Notification No. 03/2026-Central Tax (Rate) inserts a new S. No. 87A, psyllium seeds (Isobgul/Isobgol) under 1211 90 13, into the Schedule to notification No. 10/2025-Central Tax (Rate) dated 17 September 2025. It comes into force from 1 November 2026 and concerns sellers who supply psyllium seeds, including those selling online. The amending text does not itself state a rate, exemption or condition, so the effect of the new entry depends on the Schedule of the principal notification.
Read the summary and full text: Psyllium seeds (Isobgul/Isobgol) inserted in the Schedule of GST notification 10/2025-Central Tax (Rate)Official PDF(opens in a new tab)
Notification No. 05/2026-Central Tax (Rate)General
Definition of Nominated Agency replaced in GST rate notification No. 26/2018-Central Tax (Rate)
Issued Official text · Summary prepared automatically
Notification No. 05/2026-Central Tax (Rate) substitutes clause (c) of the Explanation in notification No. 26/2018-Central Tax (Rate), so that "Nominated Agency" now means the entities mentioned in Appendix 4B of the Handbook of Procedures, as amended by the Directorate General of Foreign Trade from time to time. The change comes into force on 1 November 2026. The text does not refer to ecommerce sellers, marketplaces or online supplies, and it does not change any tax rate.
Read the summary and full text: Definition of Nominated Agency replaced in GST rate notification No. 26/2018-Central Tax (Rate)Official PDF(opens in a new tab)
Notification No. 06/2026- Central TaxGeneral
Suppliers of used cooking oil and plastic, tyre, metal and electronics scrap excluded from a Central Tax notification
Issued Official text · Summary prepared automatically
Notification No. 06/2026-Central Tax substitutes the proviso in notification No. 5/2017-Central Tax, so that notification No. 5/2017-Central Tax does not apply to any person engaged in the supply of five listed categories of goods: used cooking oil (heading 1518), waste and scrap of plastics (heading 3915), waste and scrap of tyres (heading 4004), metal scrap (Chapters 72 to 81) and electrical and electronics waste and scrap (heading 8549). The change comes into force from 1 November 2026. It does not concern ecommerce sellers in general and is relevant only to a person who supplies any of the listed goods. The notification does not itself restate what notification No. 5/2017-Central Tax provides, or what the earlier proviso said.
Read the summary and full text: Suppliers of used cooking oil and plastic, tyre, metal and electronics scrap excluded from a Central Tax notificationOfficial PDF(opens in a new tab)
Notification No. 07/2026- Central TaxMedium impact
Clause (d) of Notification 50/2018-Central Tax now covers receivers of used cooking oil, plastic, tyre, metal and e-waste scrap
Issued Official text · Summary prepared automatically
Notification No. 07/2026-Central Tax substitutes clause (d) of Notification No. 50/2018-Central Tax, issued under sub-section (3) of section 1 read with section 51 of the Central Goods and Services Tax Act, 2017. The new clause (d) covers any registered person receiving used cooking oil (heading 1518), waste and scrap of plastics (heading 3915), waste and scrap of tyres (heading 4004), metal scrap (Chapters 72 to 81) or electrical and electronics waste and scrap (heading 8549) from another registered person. The change comes into force from 1 November 2026 and concerns ecommerce sellers only where they receive these goods from registered suppliers. The notification does not itself state the obligation attached to clause (d); that has to be read from the principal Notification No. 50/2018-Central Tax.
Read the summary and full text: Clause (d) of Notification 50/2018-Central Tax now covers receivers of used cooking oil, plastic, tyre, metal and e-waste scrapOfficial PDF(opens in a new tab)
Notification No. 09/2026-Central Tax (Rate)Medium impact
Clause (v) on delivery services through e-commerce operators substituted in the section 9(5) notification
Issued Official text · Summary prepared automatically
Notification No. 09/2026-Central Tax (Rate) substitutes clause (v) of Notification No. 17/2017-Central Tax (Rate), issued under sub-section (5) of section 9 of the CGST Act, 2017. Clause (v) now reads: delivery services, other than postal and courier services, except where the person supplying such services through an electronic commerce operator is liable for registration under sub-section (1) of section 22 of the CGST Act, 2017. The change comes into force from 1 November 2026 and concerns persons supplying delivery services through electronic commerce operators, and the operators. The notification does not reproduce the earlier wording of clause (v), so the text alone does not show exactly what has changed.
Read the summary and full text: Clause (v) on delivery services through e-commerce operators substituted in the section 9(5) notificationOfficial PDF(opens in a new tab)
Notification No. 10/2026-Central Tax (Rate)General
Central tax payment rule for Toll-Operate-Transfer road and highway concessionaires
Issued Official text · Summary prepared automatically
Notification No. 10/2026-Central Tax (Rate), issued under section 148 of the Central Goods and Services Tax Act, 2017, provides that a concessionaire under a Toll-Operate-Transfer concession agreement pays central tax on operation and maintenance services supplied to the concessioning authority on the amount charged or debited from the Escrow Account towards those expenses, in the tax period in which it is so charged or debited. It applies only to concessionaires holding exclusive toll rights over a road or highway who pay the concession fee upfront, with effect from 1 November 2026. It does not concern ecommerce or marketplace sellers.
Read the summary and full text: Central tax payment rule for Toll-Operate-Transfer road and highway concessionairesOfficial PDF(opens in a new tab)
Notification No. 06/2026-Central Tax (Rate)Medium impact
Same-line input tax credit for hospitality, new electric vehicle entries and revised delivery services entry under GST
Issued Official text · Summary prepared automatically
Notification No. 06/2026-Central Tax (Rate) amends Notification No. 11/2017-Central Tax (Rate) in three ways. It allows input tax credit of same-line input services for certain hotel, restaurant, railway food and outdoor catering entries, capped at tax at 2.5% for the hotel and outdoor catering entries. It adds central tax entries for passenger transport and renting of electrically operated vehicles where battery charging cost is included, and substitutes the delivery services entry linked to electronic commerce operators with central tax of 2.5, on the condition that input tax credit on goods and services used in supplying delivery service has not been taken. The changes apply from 1 November 2026; ecommerce sellers are touched mainly through delivery services in relation to goods supplied through an electronic commerce operator, and the notification also omits paragraph 3 of the principal notification without the text stating what that paragraph contained.
Read the summary and full text: Same-line input tax credit for hospitality, new electric vehicle entries and revised delivery services entry under GSTOfficial PDF(opens in a new tab)
Notification No. 07/2026-Central Tax (Rate)Medium impact
GTA services for goods supplied through e-commerce operators carved out of entry 21A, with new Nil entries added
Issued Official text · Summary prepared automatically
From 1 November 2026, the entry at serial number 21A of Notification No. 12/2017-Central Tax (Rate) does not apply to services provided by a goods transport agency in relation to goods supplied through an electronic commerce operator. The notification also substitutes the definition of goods transport agency as any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called. Goods transport agencies, and sellers whose goods are supplied through an electronic commerce operator and moved by such agencies, are affected; the notification does not state what tax treatment applies to these services instead. The other changes cover helicopter seat-share travel in specified states, warehousing of agricultural produce and seeds, and new Nil entries that do not concern ecommerce sellers.
Read the summary and full text: GTA services for goods supplied through e-commerce operators carved out of entry 21A, with new Nil entries addedOfficial PDF(opens in a new tab)
Circular No. 257/03/2026-GSTMedium impact
CBIC guidelines for applicants on documents, premises proof and processing of GST registration applications
Issued Official text · Summary prepared automatically
Circular No. 257/03/2026-GST issues guidelines under section 168(1) of the CGST Act, 2017 for applicants filing GST registration in FORM GST REG-01. It sets out the documents for each type of principal or additional place of business (owned, rented, consent, co-working, SEZ) and directs proper officers not to seek unwarranted documents such as an Udyam certificate. It applies to applicants for registration, including persons supplying through an electronic commerce operator required to collect tax at source under section 52, and was issued on 26 October 2026. A seller registering from a home, rented unit, co-working desk or warehouse would use the premises checklists in the circular's annexures.
Read the summary and full text: CBIC guidelines for applicants on documents, premises proof and processing of GST registration applicationsOfficial PDF(opens in a new tab)
Circular No. 258/04/2026-GSTMedium impact
CBIC guidelines for officers on GST show cause notices, adjudication orders, rectification and first appeals
Issued Official text · Summary prepared automatically
CBIC Circular No. 258/04/2026-GST issues guidelines under section 168(1) of the CGST Act to officers on drafting show cause notices, invoking fraud, wilful misstatement or suppression of facts, conducting personal hearings, writing adjudication orders, rectifying orders under section 161 and deciding first appeals. It concerns any registered person, including marketplace and D2C sellers, who receives a notice or is in adjudication or first appeal proceedings under the CGST Act. The circular is dated 26 October 2026 and states that the guidelines are illustrative, non-exhaustive and must not be cited by proper officers in show cause notices, final or appellate orders.
Read the summary and full text: CBIC guidelines for officers on GST show cause notices, adjudication orders, rectification and first appealsOfficial PDF(opens in a new tab)
Circular No. 259/05/2026-GSTMedium impact
CBIC clarifies how GST appeal pre-deposit is computed and refunded
Issued Official text · Summary prepared automatically
Circular No. 259/05/2026-GST, dated 26 October 2026, clarifies how the pre-deposit for appeals under sub-section (6) of section 107 and sub-section (8) of section 112 of the CGST Act is worked out: the admitted amount is paid in full, and the 10% is calculated on the tax the taxpayer disputes, which at the Appellate Tribunal stage means the liability confirmed by the Appellate Authority that the appellant disputes. It is a clarification issued under sub-section (1) of section 168, not an amendment, and it concerns any taxpayer filing a GST appeal, which includes an ecommerce seller contesting a demand. It also states that refund of pre-deposit is claimed under S. No. 7 of FORM GST RFD-01 and should not be denied merely because the Department intends to appeal or has appealed, unless the favourable order is stayed by the Appellate Tribunal or a Court.
Read the summary and full text: CBIC clarifies how GST appeal pre-deposit is computed and refundedOfficial PDF(opens in a new tab)
Circular No. 260/06/2026-GSTMedium impact
CBIC clarifies ISD registration, timing of credit distribution and who must meet conditions and make reversals
Issued Official text · Summary prepared automatically
CBIC Circular No. 260/06/2026-GST clarifies that recipients of credit distributed by an Input Service Distributor (ISD), not the ISD, must meet the input tax credit conditions in section 16 or section 17 of the CGST Act, 2017 and make reversals, and that an ISD distributes credit in the month it ascertains the credit to be prima facie eligible. It also clarifies that each separately registered vertical or place of business receiving input service invoices for distinct persons is required to obtain an ISD registration, and that amounts on rule 54(1A) transfer invoices are not turnover in State, Adjusted total turnover or NET ITC. It concerns sellers with ISD registrations or multiple registrations that procure services centrally, and was issued on 26 October 2026 as a clarification under section 168(1).
Read the summary and full text: CBIC clarifies ISD registration, timing of credit distribution and who must meet conditions and make reversalsOfficial PDF(opens in a new tab)
Circular No. 261/07/2026-GSTGeneral
CBIC clarifies how banks and NBFCs use the fifty per cent input tax credit option under section 17(4)
Issued Official text · Summary prepared automatically
Circular No. 261/07/2026-GST clarifies which registrations of a banking company or financial institution, including a non-banking financial company, may opt for the fifty per cent input tax credit route under section 17(4) of the CGST Act, when the second proviso relaxation applies, and how availment and reversal are to be reported in FORM GSTR-3B. It applies to such entities engaged in accepting deposits, extending loans or advances, and advises field formations not to take an adverse view of a different past reporting method where the credit availed matches the principles set out. The circular does not concern ecommerce sellers or marketplace operators.
Read the summary and full text: CBIC clarifies how banks and NBFCs use the fifty per cent input tax credit option under section 17(4)Official PDF(opens in a new tab)
Circular No. 262/08/2026-GSTGeneral
Input tax credit on demo vehicles no longer blocked for authorised dealers in the dealer-agency model
Issued Official text · Summary prepared automatically
Circular No. 262/08/2026-GST withdraws para 4.6 of Circular No. 231/25/2024-GST and clarifies that input tax credit on demo vehicles is not blocked under clause (a) of section 17(5) of the CGST Act for the dealer in the dealer-agency model, where the manufacturer sells new vehicles directly to customers. It concerns authorised dealers appointed by vehicle manufacturers for sale of motor vehicles, and does not concern ecommerce sellers generally. The circular is dated 26 October 2026 and does not state a separate effective date or deal with earlier periods.
Read the summary and full text: Input tax credit on demo vehicles no longer blocked for authorised dealers in the dealer-agency modelOfficial PDF(opens in a new tab)
Circular No. 263/09/2026-GSTMedium impact
CBIC clarifies when rupee account receipts and set-offs meet the export of services payment condition, and Rule 96B recovery for goods
Issued Official text · Summary prepared automatically
Circular No. 263/09/2026-GST clarifies that payment for export of services received in convertible foreign exchange or in repatriable rupee (INR) accounts, such as SNRR or INR Nostro accounts, or settled by set-off of export receivables against import payables in accordance with RBI directions, fulfils sub-clause (iv) of clause (6) of section 2 of the IGST Act, 2017. For export of goods, it clarifies that the time limit for realisation of export proceeds under Rule 96B of the CGST Rules is the period prescribed in RBI FED Master Direction No. 16/2015-16, and that refund recovery under rule 96B shall not be done where the AD Bank has written off the realisation requirement. It is a clarification issued under section 168 (1) of the CGST Act, not an amendment, and is relevant to sellers who export goods or services and claim GST refunds. The circular does not address marketplace-specific payment arrangements.
Read the summary and full text: CBIC clarifies when rupee account receipts and set-offs meet the export of services payment condition, and Rule 96B recovery for goodsOfficial PDF(opens in a new tab)
Circular No. 264/10/2026-GSTMedium impact
CBIC clarifies that the omission of rule 96(10) of the CGST Rules applies retrospectively
Issued Official text · Summary prepared automatically
CBIC Circular No. 264/10/2026-GST clarifies that the omission of rule 96(10) of the CGST Rules, 2017, earlier made prospectively with effect from 8 October 2024, will be effective retrospectively from 23 October 2017, following the Supreme Court judgment dated 6 August 2026 in Goodluck India Limited. Rule 96(10) prevented exporters who benefited from IGST exemption on procurement under specified notifications from also claiming IGST refunds on export of those goods, so the clarification concerns sellers who export goods. Field formations are advised to deal with pending proceedings concerning rule 96(10) in accordance with the judgment, and the same treatment applies mutatis mutandis to the omission of rules 89(4A) and 89(4B). The circular does not say whether proceedings that are no longer pending are affected.
Read the summary and full text: CBIC clarifies that the omission of rule 96(10) of the CGST Rules applies retrospectivelyOfficial PDF(opens in a new tab)
Notification No. 03/2026-Central TaxGeneral
Sections 153 to 155 of the Finance Act, 2026 come into force on 1 November 2026
Issued Official text · Summary prepared automatically
Notification No. 03/2026-Central Tax appoints 1 November 2026 as the date on which the provisions of sections 153 to 155 of the Finance Act, 2026 (4 of 2026) come into force. The Central Government issued it under clause (b) of sub-section (2) of section 1 of the Finance Act, 2026. The notification does not set out what sections 153 to 155 provide. It therefore does not, by itself, show whether or how ecommerce or marketplace sellers are affected; that depends on the text of those sections.
Read the summary and full text: Sections 153 to 155 of the Finance Act, 2026 come into force on 1 November 2026Official PDF(opens in a new tab)
Notification No. 04/2026-Central TaxMedium impact
E-invoicing extended to reverse charge supplies from unregistered persons and import of services
Issued Official text · Summary prepared automatically
Notification No. 04/2026-Central Tax amends Notification No. 13/2020-Central Tax, issued under rule 48(4) of the Central Goods and Services Tax Rules, 2017. Two categories are added to supplies to registered persons and exports: supplies received from an unregistered person where tax is payable on reverse charge basis by the recipient, and import of services. The change comes into force on 1 January 2027. A seller that buys from unregistered persons under reverse charge or imports services would be affected, though the text does not restate who must prepare e-invoices or any turnover condition.
Read the summary and full text: E-invoicing extended to reverse charge supplies from unregistered persons and import of servicesOfficial PDF(opens in a new tab)
Notification No. 05/2026-Central TaxHigh impact
New rule 14B lets sellers register in other States using an e-commerce operator's warehouse, alongside changes to cancellation and refund rules
Issued Official text · Summary prepared automatically
Notification No. 05/2026-Central Tax inserts rule 14B into the CGST Rules, 2017. It allows a person registered in one State or Union territory to obtain registration against the same PAN in another State or Union territory where it has no physical presence. It does this by declaring, as principal place of business, the warehouse of an e-commerce operator required to collect tax at source under section 52, subject to the operator's consent and a cap of two lakh fifty thousand rupees per month on output tax liability on such supplies to registered persons. The rules come into force on 1 November 2026 save as otherwise provided; the same notification also substitutes rules 19, 20, 21 and 21A, changes the inverted duty structure refund formula in rule 89(5) and refund processing in rules 90 to 92, with several parts taking effect from 1 December 2026 or 1 April 2027.
Read the summary and full text: New rule 14B lets sellers register in other States using an e-commerce operator's warehouse, alongside changes to cancellation and refund rulesOfficial PDF(opens in a new tab)
GSTN Advisory on Invoice Management System (IMS) and FAQ on IMS changes from October 2025High impact
Invoice Management System (IMS): accept, reject, pending and deemed acceptance
Issued Reviewed by CA Apurav Garg
Every invoice, debit note and credit note your suppliers report in GSTR-1, IFF or GSTR-1A appears in your IMS dashboard. You can accept, reject or keep it pending until you file GSTR-3B. Anything you leave untouched is deemed accepted when GSTR-2B is generated. For a brand that buys from many vendors, logistics partners and marketplaces (commission invoices), IMS decides which input tax credit reaches GSTR-2B. Rejecting a supplier's credit note raises that supplier's liability. From the October 2025 tax period, credit notes can also be kept pending for one tax period, and you can declare the amount of ITC to be reduced.
Read the summary and full text: Invoice Management System (IMS): accept, reject, pending and deemed acceptanceOfficial PDF(opens in a new tab)
Notification No. 09/2025–Central Tax (Rate)High impact
GST on apparel, made-up textiles and footwear: the ₹2,500 per piece / per pair line
Issued Reviewed by CA Apurav Garg
From 22 September 2025, the GST rate on readymade garments (Chapters 61 and 62), other made-up textile articles (Chapter 63) and footwear (Chapter 64) depends on the sale value of each piece or pair. Up to ₹2,500 a piece or pair falls in Schedule I (2.5% central tax, 5% in total with state tax). Above ₹2,500 falls in Schedule II (9% central tax, 18% in total). For a fashion or footwear brand, the rate can change with the discount, so the rate is decided on the actual sale value of each item, not the MRP.
Read the summary and full text: GST on apparel, made-up textiles and footwear: the ₹2,500 per piece / per pair lineOfficial PDF(opens in a new tab)
Notification No. 16/2024–Central TaxMedium impact
Input Service Distributor (ISD) becomes mandatory from 1 April 2025
Issued Reviewed by CA Apurav Garg
Notification 16/2024–Central Tax brings sections 11 and 12 of the Finance Act, 2024 into force on 1 April 2025. These sections changed the definition of Input Service Distributor in section 2(61) and the manner of distribution in section 20 of the CGST Act, so that distributing credit of common input services through an ISD is mandatory. Notification 09/2025–Central Tax brought the related CGST Rules amendments into force on the same date. A brand with GSTINs in several states (for example warehouse or APOB registrations) that receives common services billed to one GSTIN needs to check whether it must register as an ISD.
Read the summary and full text: Input Service Distributor (ISD) becomes mandatory from 1 April 2025Official PDF(opens in a new tab)
Notification No. 26/2022–Central Tax and Notification No. 38/2023–Central TaxHigh impact
Rules 88C and 88D: DRC-01B and DRC-01C intimations for GSTR-1, GSTR-3B and GSTR-2B gaps
Issued Reviewed by CA Apurav Garg
The GST portal now compares your returns automatically. Rule 88C (Notification 26/2022): if tax in GSTR-1 exceeds tax paid in GSTR-3B by more than the limits recommended by the GST Council, you get an intimation in Part A of DRC-01B. Rule 88D (Notification 38/2023): if ITC claimed in GSTR-3B exceeds ITC in GSTR-2B beyond those limits, you get DRC-01C. In both cases you have seven days to pay through DRC-03 or explain the difference in Part B, and until you do, the next GSTR-1 cannot be filed. For marketplace sellers, timing gaps between invoices, credit notes and returns are a common cause.
Read the summary and full text: Rules 88C and 88D: DRC-01B and DRC-01C intimations for GSTR-1, GSTR-3B and GSTR-2B gapsOfficial PDF(opens in a new tab)
Notification No. 14/2022–Central TaxHigh impact
Rule 89(5) inverted duty refund formula and Rule 88B interest on delayed GSTR-3B
Issued Reviewed by CA Apurav Garg
Two changes matter to ecommerce brands. First, the inverted duty refund formula in Rule 89(5) now deducts only the share of output tax that is paid from input credit: tax payable on the inverted rated supply × (Net ITC ÷ ITC availed on inputs and input services). This usually raises the refund for brands that buy inputs at a higher rate than they sell at, for example fabric at 5% or 12% and garments at 5%. Second, Rule 88B (deemed inserted from 1 July 2017) confirms that interest on a late GSTR-3B is charged on the part of tax paid in cash, for the days of delay.
Read the summary and full text: Rule 89(5) inverted duty refund formula and Rule 88B interest on delayed GSTR-3BOfficial PDF(opens in a new tab)
Circular No. 167/23/2021–GST and GSTN Advisory on GSTR-1 Tables 14 and 15Medium impact
Supplies through e-commerce operators: Section 9(5), TCS and GSTR-1 Tables 14 and 15
Issued Reviewed by CA Apurav Garg
Circular 167/23/2021–GST clarifies how GST works when restaurant service is notified under section 9(5): the e-commerce operator (ECO) pays the GST in cash, issues the invoice and stops collecting TCS on those supplies, while TCS under section 52 continues on all other supplies through the ECO. GSTN's advisory adds two GSTR-1 tables from the January 2024 tax period. A seller reports ECO-wise sales on which the ECO collects TCS in Table 14(a), and sales on which the ECO pays tax under section 9(5) in Table 14(b). The ECO reports its section 9(5) supplies in Table 15. For product sellers on marketplaces, Table 14(a) is a summary of sales already reported in Tables 4 to 10, and it helps match the TCS the marketplace reports in GSTR-8.
Read the summary and full text: Supplies through e-commerce operators: Section 9(5), TCS and GSTR-1 Tables 14 and 15Official PDF(opens in a new tab)
Official text from CBIC and GSTN. General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.