# Tax Payable by Electronic Commerce Operator – Section 9(5)

## Who is an ECO?

An Electronic Commerce Operator (ECO) is a person who owns, operates or manages a digital/electronic platform for supply of goods and/or services.

ECO may directly supply or merely display third-party listings.
Typically collects payment from consumer and remits to supplier after deducting commission.

## Section 9(5) – Notified Services

For the following services supplied through an ECO, GST is payable by the ECO itself, as if the ECO were the supplier. All provisions of the Act apply to it accordingly.

#	Notified Service	Exception (when ECO is NOT liable)
(a)	Transportation of passengers by radio-taxi, motorcab, maxicab, motorcycle or any other motor vehicle EXCEPT omnibus	–
(b)	Transportation of passengers by omnibus	When supplier through ECO is a company
(c)	Accommodation in hotels, inns, guest houses, clubs, campsites and other commercial places meant for residential/lodging	When supplier through ECO is liable for registration u/s 22(1)
(d)	House-keeping services (plumbing, carpentering, etc.)	When supplier through ECO is liable for registration u/s 22(1)
(e)	Restaurant service (other than services from restaurants/eating joints located at 'specified premises' — hotels with declared tariff > ₹7,500/unit/day)	–

## Compliance Mechanics for ECO

ECO discharges the GST liability by furnishing details in Form GSTR-3B as outward supplies.

## Key Clarifications on Restaurant Services through ECO

1. ECO is NOT required to collect TCS, file GSTR-8, or take separate registration for paying GST on restaurant services notified u/s 9(5).

2. ECO must pay GST on all restaurant services supplied through it — including those by unregistered restaurants.

3. The restaurant supply is included in the aggregate turnover of the restaurant (supplier) — NOT in ECO's turnover.

4. For ECO, restaurant services supplied through it are NOT inward supplies for RCM purposes.

5. No reversal of proportionate ITC by ECO:

ECO uses inputs/input services for running its platform.
ECO can avail ITC for paying GST on its own services (commission/fees).
But ECO must pay GST on Sec 9(5) restaurant supplies entirely in cash — cannot use ITC against that liability.

6. If supplies through ECO are not notified under Section 9(5) → supplier pays GST and ECO deposits TCS (under Sec 52).

7. ECO must raise the invoice for restaurant services supplied through it.

8. Mixed orders: Where restaurant service AND other goods/services are sold under the same order, ECO must raise a separate bill for the restaurant service; the supplier handles invoicing for the other items.

## Person Liable to Pay GST — Geographic Rules

Situation	Person liable
ECO has physical presence in TT	ECO
ECO has no physical presence but has a representative in TT	Representative of ECO
ECO has neither physical presence nor representative in TT	Person appointed by ECO for the purpose of paying tax

Worked example

### Example 1

Example 1 (Cab aggregator): A platform connecting cab drivers and riders — GST on passenger transport service is paid by the ECO under Sec 9(5), not by the individual driver.

### Example 2

Example 2 (Hotel via aggregator): A small unregistered guest-house lists rooms on an aggregator portal. The ECO is liable to pay GST under Sec 9(5)(c). However, if the guest-house is itself liable for registration u/s 22(1), ECO is NOT liable.

### Example 3

Example 3 (Restaurant on food aggregator): A small unregistered restaurant supplies food through a food-delivery app. The app (ECO) pays GST on the restaurant service entirely in cash — cannot offset with ITC. Restaurant's turnover (not the app's) includes these supplies.

### Example 4

Example 4 (Mixed order): A customer orders restaurant food + groceries from a quick-commerce app. ECO raises a separate bill for the restaurant food (pays GST under 9(5)); the grocery supplier handles its own invoice and GST.

### Example 5

Example 5 (Premium hotel restaurant): Restaurant located in a hotel with declared tariff of ₹10,000/unit/day supplies food through an ECO. Sec 9(5) does NOT apply (excluded as 'specified premises'); the restaurant pays GST and ECO collects TCS u/s 52.

⚠️ Common exam mistakes

ECO offsetting Sec 9(5) restaurant liability with ITC — must be paid in cash.
Including Sec 9(5) restaurant service value in ECO's aggregate turnover — it belongs to the supplier.
Collecting TCS on Sec 9(5) supplies — TCS is for non-9(5) supplies.
Forgetting the 'specified premises' exception for premium hotel restaurants.
Applying Sec 9(5)(b) (omnibus) when the supplier is a company — Sec 9(5)(b) carves out companies.

Bare-Act text Section 9(5) · CGST Act, 2017 · click to expand

The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services.

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Tax Payable by Electronic Commerce Operator (ECO) – Section 9(5)

Worked example

⚠️ Common exam mistakes