In case of e-commerce companies, the liability to pay GST under reverse charge mechanism (RCM) lies with the e-commerce operator instead of the supplier. This means that if an e-commerce operator supplies goods or services through its portal and the supplier is not registered under GST, then the e-commerce operator is liable to pay GST on behalf of the supplier under RCM.
For example,
if an unregistered supplier sells goods worth Rs. 10,000 through an e-commerce platform, then the e-commerce operator will have to pay GST of Rs. 1,800 (18% of Rs. 10,000) under RCM.
However, if the supplier is registered under GST, then the liability to pay GST will lie with the supplier and not the e-commerce operator. In such cases, the e-commerce operator has to collect and deposit the tax from the customer and not pay the tax under RCM.
