E-Commerce Companies are called Aggregators
This is because they do not sell goods and Services Directly to Customer
They act as middleman between buyer and seller
Example of Service in E- Commerce: -
Suppose a Customer Miss Kanika Requires Pest Control Service at her home
She approaches a Website (or App) called Urban Clap and books Service of SK Enterprises for Rs 1000
Miss Kanika pays Rs 1000 online to Urban Clap and Urban Clap keeps 300 Commission pays 700 to SK Enterprises
In this case, Service Provider is SK Enterprises and Service Receiver is Kanika
Neither of them pays GST
It is paid by E-Commerce Company Urban Clap
Example of Goods in E- Commerce
Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000
This was sold by Dealer Vishal Trading Company
Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company
In this case, Seller is Vishal Trading Company and Buyer is Dinesh
Neither of them pays GST
It is paid by E-Commerce Company Flipkart
