Ques: 901: The startup intends to provide an online platform where vendors can register and clients can select their services. Example, one Dance Academy has registered on our site, and a consumer wishes to identify a Dance Academy near his location. Our website assists people in finding a nearby Dance academy in their area. Customers will pay for registration at the dancing academy through our website. We charged customers extra convenience fees in addition to academy enrollment costs.
We will pay the Dance Academy after deducting a certain proportion of the commission charges from the revenue received from clients.
Does e-commerce activity cover the startup and must obtain GST registration before starting an e-commerce business, or will it be covered solely by e-business?
How do I charge GST from customers? It will be levied on the price, including vendor services, or our convenience fees only.
Does the vendor need to raise the Invoice to us for his service or directly to customers?

Ans. In GST, you are working as E-commerce operator. Being an E-comm operator you are required to deduct TCS from vendor payment and to take registration in all states where vendors are located.GST will apply on convince fee charged from customer as well as commission charged from vendor.Vendor will charge GST on services provided to end customer.GST provisions w.r.t. E-commerce business are little complex, therefore it is advisable to thoroughly map business model with GST provisions.

Ques: 900: I have transfer my business on 6.10.2023 to another firm. Now I want to tranfer itc to the new firm by filing ITC-02 form on portal. Now amount to be transferred should be closing balance as on 06.10.2023 or it should be the amount in electronic credit ledger after filing my return of October

Ans: As per Rule 41 of CGST Rules, a registered person shall, in the event of sale, merger, de-merger, amalgamation, lease or transfer or change in the ownership of business for any reason, furnish the details of sale, merger, de-merger, amalgamation, lease or transfer of business, in FORM GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee.

Accordingly, the taxpayer will be eligible transfer whatever input tax credit is available on the GST portal on the date of filing of ITC-02.

Ques: 899: Please forward any notification, circular, guideline, FAQ or case law that may be available in support of the opinion that RCM supplies have to be excluded from the calculation of aggregate turnover.

Ans. In our view, outward supplies covered under RCM will form part of aggregate turnover.