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CS Executive · Tax Laws and Practice · Levy and Collection of GST

A foreign electronic commerce operator has no physical presence in the taxable territory, but a Mumbai firm represents it for some purpose in India. Services notified under section 9(5) are supplied through its platform. Who is liable to pay the tax under the first proviso to section 9(5)?

The Mumbai firm representing the operator is liable. Where an e-commerce operator lacks physical presence in the taxable territory, the first proviso makes any person representing it for any purpose there liable to pay the tax.

  1. AThe Mumbai firm representing the operator in the taxable territoryCorrect
  2. BThe recipient of the services under reverse charge
  3. CNo one, as the operator has no physical presence
  4. DOnly the actual supplier of the services

Explanation

The first proviso states that where the operator has no physical presence in the taxable territory, any person representing it for any purpose in the taxable territory is liable to pay tax. The Mumbai firm is such a representative. The absence of physical presence does not remove liability.

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