Who is an Electronic Commerce Operator?
As per section 2 (44) of the CGST act, electronic commerce means the supply of goods or services or both over digital or electronic network. The products sold also include digital products.
And as per section 2(45) of the CGST act, electronic commerce operator means any person who owns, operates or manages digital platform for electronic commerce.For instance, platforms like Amazon, Flipkart, Jabong etc are few of the many e-commerce operators functioning in India. These operators display products or services on their e – commerce portal. But such products or services are supplied to the end consumers by other suppliers.
This means that the consumers buy the displayed goods or services through these portals. Thus, the actual supplier supplies selected goods or services to the consumer. This is done once the consumer places the order for such goods or services on the portal. Furthermore, the e-commerce operator collects the payment from the consumer and gives the same to the concerned supplier. Finally, the operator deducts a specific amount of margin and commission from the net value of goods and services sold by a supplier through the portal.
You May Also Read
GST Impact on E-Commerce Sellers