The 2023 Budget has proposed the extension of the Composition Scheme to registered individuals which was earlier not available to registered persons supplying goods through e-commerce operators. The restriction on registered persons supplying goods through e-commerce operators from opting into the Composition Scheme has been lifted by amending Section 10 of the CGST Act, 2017.
Clause 128 of the Finance Bill, 2023 proposes to amend section 10 of the Central Goods and Services Tax (GST) Act :
"(a) in sub-section (2), in clause (d), the words “goods or” shall be omitted;(b) in sub-section (2A), in clause (c), the words “goods or” shall be omitted."
The restriction on suppliers of goods through e-commerce operators is being lifted by removing the words "goods or" in Sub-sections (2) and (2A). As a result, these registered persons now have the option to pay taxes under the Composition Levy.
Q Can composition taxpayer make Supply of services through an e-commerce Operator?
A The amendment applies only to the supply of goods through e-commerce operators and not to the supply of services through e-commerce operators. Service providers supplying through e-commerce portals are still not eligible for the Composition Scheme.
Q Can a composition taxpayer make "Inter State" supply of goods through an e-commerce operator?
A No, after the amendment, a composition taxpayer can only make "Intra State" supply of goods through e-commerce operators. The "Inter State" supply of goods through e-commerce operators is still not permitted under the Composition Scheme.
This Article was authored by Tushant a passionate blogger by .
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