CA Final · Indirect Tax Laws · Electronic Commerce Transactions
Streamly Inc., a company based in Ireland, provides online information and database access or retrieval services from a place outside India to customers in India, including some unregistered individuals. Under section 24 of the CGST Act, which statement is correct about Streamly's registration obligation?
Streamly must register. Section 24(xi) makes registration compulsory for every person supplying online information and database access or retrieval services from outside India to a person in India other than a registered person, irrespective of any turnover threshold or lack of an Indian place of business.
- AStreamly must register as a person supplying such services to a person in India other than a registered personCorrect
- BStreamly need not register as it has no place of business in India
- CStreamly must register only if it supplies to registered persons
- DStreamly must register only after crossing the normal turnover threshold
Explanation
Section 24(xi) requires registration of every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person. Absence of an Indian place of business or a threshold does not matter because section 24 applies notwithstanding section 22(1). Option C reverses the condition, as supplies to registered persons are excluded.
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