Digital Platform deemed Supplier of Services u/s 9(5) of GST Act, Liable for GST: AAR

The Authority for Advance Rulings (AAR) determined that Vyavshay, a mobile app connecting service providers with customers, qualifies as an 'e-commerce operator' under Section 9(5) of the GST Act. Despite the applicant's argument that they merely facilitate transactions, the AAR bench found their platform meets the definition of an e-commerce operator. \r

Section 9(5) mandates e-commerce operators to pay GST on specific services booked through their platform, considering them as the deemed suppliers. The ruling obliges Vyavshay to pay GST on notified services facilitated through their app, highlighting the statutory obligation on e-commerce operators to collect and remit taxes on such transactions.