CA Final · Indirect Tax Laws · Electronic Commerce Transactions
Zenith Cloud Inc., based in Singapore, supplies online information and database access or retrieval services to individuals in India. It has no registration in India. Under section 24 of the CGST Act, what is the position regarding its registration?
Zenith Cloud Inc. must be registered. Section 24 makes registration compulsory for every person supplying online information and database access or retrieval services from outside India to a person in India who is not registered, regardless of any turnover threshold.
- ARegistration is required only if its aggregate turnover crosses the normal threshold
- BRegistration is required, since every person supplying such services from a place outside India to a non-registered person in India must be registeredCorrect
- CRegistration is required only if it supplies through an Indian electronic commerce operator
- DNo registration is needed because the supplier is located outside India
Explanation
Section 24(xi) requires compulsory 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. The threshold under section 22 does not apply because section 24 operates notwithstanding it. Being located abroad does not exempt it.
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