Levy of GST— In the instant case, the applicant stated that they are registered under the GST Act and are engaged in the business of providing computer software application services designed to run on digital devices such as mobile phones, tablets, personal computers in the state of Karnataka and the said services are meant for facilitating business transactions of supply of goods or services or both connecting through the platform of suppliers/sellers and recipients/buyers.
In view of the above, the applicant has sought advance ruling in respect of the following questions:-
a. Whether the Applicant satisfies the definition of an e-commerce operator and the nature of supply as conceptualized in Section 9(5) of CGST Act 2017 r/w notification No. 17/2017 dated 28.06.2017?
b. Whether the supply by the service provider (person who has subscribed to Applicant's app) to his customers (who also have subscribed to Applicant's app) on the Applicant's computer application amounts to supply by the Applicant?
c. Whether the Applicant is liable to collect and pay GST on the supply of goods or services supplied by the service provider (person who has subscribed to Applicant's app) to his customers (who also have subscribed to Applicant's app) on the Applicant's computer application?
The applicant provides computer application services through the APP known as MYn for facilitating business transactions of goods or services or both connecting through the said APP/platform to the suppliers/sellers and recipients/buyers, registered under the said APP on payment of membership charges & subscription fee and also on furnishing required documents as well as on entering into EULA (End User Licence Agreement).
The applicant, quoting the definitions of 'electronic commerce' and 'electronic commerce operator' in terms of Sections 2(44) and 2(45) respectively, Section 9(5) of the CGST Act 2017 and Notification No. 17/2017-Central Tax (Rate) dated 28.06.2017 contends that the applicant is a technology provider to cab service provider and would like to distinguish from rent-a-cab aggregator; they do not maintain control room and call centre due to their unique business model and hence they do not fulfill the conditions that are required to obtain rent-a-cab aggregator licence from the RTO and therefore they are not registered with the regional transport office (RTO) as a rent-a-cab aggregator and thus they are not an e-commerce operator.
Held that— a. The Applicant satisfies the definition of an e-commerce operator but does not satisfy the conditions of Section 9(5) of CGST Act 2017 r/w Notification No. 17/2017 dated 28.06.2017, for the discharge of tax liability by electronic commerce operator.
b. The supply by the service provider (person who has subscribed to Applicant's app) to his customers (who also have subscribed to Applicant's app) on the Applicant's computer application does not amounts to supply by the Applicant
c. The Applicant is not liable to collect and pay GST on the supply of goods or services supplied by the service provider (person who has subscribed to Applicant's app) to his customers (who also have subscribed to Applicant's app) on the Applicant's computer application.