E-commerce operator under GST explained

Duties of the operator

An ECO must register under GST regardless of turnover. Under Section 52, an ECO that collects payment on behalf of suppliers must collect tax at source (TCS) at the notified percentage of the net value of taxable supplies made through it, deposit it, and file GSTR-8 by the 10th of the following month. The TCS then appears as a credit in the seller's electronic cash ledger.

• Under Section 9(5), for notified services such as passenger transport, certain accommodation, housekeeping and restaurant services supplied through the platform, the ECO itself pays the GST as if it were the supplier.
• The ECO must provide information on supplies when the department asks.

What sellers should know

Suppliers of goods through an ECO that collects TCS generally need registration, though small suppliers have been given conditional relief under notified conditions, and service providers below the threshold are exempt from registration. Sellers should reconcile the TCS credit in their cash ledger with the operator's GSTR-8 data and their own GSTR-1, because the operator's reported sales are visible to the department.

Common mismatches

Returns, cancellations and platform commissions often create differences between the seller's sales figures and the ECO's figures. Platform commission is a separate service by the operator to the seller, billed with GST, on which the seller can usually claim input tax credit.

Get it handled for you

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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.