GST
Selling goods on e-commerce under composition
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Facts
Since 1 October 2023, composition taxpayers can supply goods through e-commerce operators within their own State, subject to conditions in Notification 36/2023-CT. The operator must not allow inter-State supplies by them. Supplying services through an e-commerce operator is still not allowed.
Provisions and law
- Sec 10(2), CGST Act 2017Lists who cannot opt, such as inter-State outward suppliers and notified manufacturers; all registrations on the same PAN must opt together
- Notification 36/2023-CTSpecial procedure for e-commerce operators for goods supplied through them by composition taxpayers, limited to intra-State supply
Analysis
Example: a Surat saree trader in composition can list on a marketplace for buyers in Gujarat only, if the platform supports the composition seller restriction. Orders from other States must be blocked by the operator. Check with the platform before listing, as not all platforms enable it. TCS by the operator still applies.
Conclusion
- Check if the marketplace supports composition sellers
- Set delivery to your own State only
- Keep TCS and settlement reports for CMP-08
- Avoid any service supply through the platform
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Opting into composition, CMP-02
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