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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Supply under GST

Where an electronic commerce operator notified for specified services has no physical presence and no representative in the taxable territory, what does the Act require?

The electronic commerce operator must appoint a person in the taxable territory for the purpose of paying tax, and that appointed person becomes liable to pay the tax on the notified services supplied through the operator.

  1. AThe recipient of the service pays the tax
  2. BThe supplier on the platform is relieved of all liability and no tax is due
  3. CThe operator must appoint a person in the taxable territory for the purpose of paying tax, and that person is liable to pay taxCorrect
  4. DThe Government appoints a representative on behalf of the operator

Explanation

The second proviso requires such an operator to appoint a person in the taxable territory for paying tax, and that person is liable. The other options are not provided in the Act.

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