Special Procedure for E-Commerce Operators – Supplies by Exempted Persons (w.e.f. 1 Oct 2023)

Notification No.: 37/2023 – Central Tax
Date of Notification: 4th August 2023

Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 23(2) – Exemption from GST registration
  • Section 52 – Collection of tax at source (TCS) by e-commerce operators
  • Section 148 – Special procedure for certain processes
• Earlier Notification Linked:
  • Notification No. 34/2023 – Central Tax, dated 31st July 2023 – Exemption from registration for small suppliers of goods through ECOs

Summary of Notification:

1. This notification lays down a special procedure for e-commerce operators (ECOs) in relation to suppliers exempted from GST registration under Notification 34/2023.
2. Key provisions are:
   • ECOs can allow supply of goods only if the exempted supplier has been allotted an enrolment number on the GST portal.
   • ECOs shall not allow inter-State supply of goods by such exempted persons.
   • ECOs shall not collect TCS under Section 52(1) on such supplies.
   • ECOs must furnish details of such supplies in FORM GSTR-8 electronically.
3. Where multiple ECOs are involved in a transaction, the ECO making the final payment to the supplier will be considered responsible for compliance under this notification.
4. This notification comes into effect from 1st October 2023, synchronizing with the effective date of Notification 34/2023.

Source: Notification No.: 37/2023 – Central Tax