In this we have discussed the recent change in Composition Scheme allowing a person registered under section 10 of Central Goods & Service Tax Act, 2017 to supply the goods through e commerce operators like amazon, flipkart, meesho etc. we.f. October 1, 2023.

1. Composition Levy Extension: Section 137 of the Finance Act, 2023 extends the benefit of the composition scheme to suppliers of goods operating under the e-commerce model. Previously, this scheme was not available to registered persons engaged in supplying goods through an E-commerce operator (ECO). However, this benefit does not apply to registered persons under section 10 engaged in the supply of services through an E-commerce operator.

2. Special Procedure for E-commerce Operators: The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification Nos. 36/2023 and 37/2023 – Central Tax dated August 04, 2023, which outline a special procedure to be followed by E-commerce operators regarding the supply of goods made by composition dealers (those paying tax under Section 10 of the CGST Act). The procedure includes:

• Prohibition of inter-state supply of goods through the ECO platform by the composition dealer.

• Allowance of supply of goods through the ECO platform only if the composition dealer has been allotted an enrollment number on the common portal.

• Collection of tax at source by the ECO under subsection (1) of Section 52 of the CGST Act for the supplies of goods made by the composition dealer through its platform.

• Electronic submission of details of supplies of goods made by the composition dealer through its platform in FORM GSTR-8.

These changes are for streamlining the taxation of goods supplied through e-commerce platforms and ensuring compliance with GST regulations.