I want to start an online grocery store like Big Basket for only hyperlocal delivery. I will purchase grocery items from third parties and then sell them to customers who make their purchases through my website. I make money on margin basis.
My questions are:
1. Am I considered an E-commerce operator or an online trader?
2. Do I have to compulsorily register for GST or do I get the 20 lakhs threshold?
Definitely as you are owning digital or electronic platform for electronic commerce , you will be regarded as electronic commerce operator as per Sec 2(45) of the CGST Act.
However you will get Rs 20 lakh (Rs 40 lakh- if engaged solely in goods) threshold in view of fact that as per amended Sec 24(x) of the CGST Act, every electronic commerce operator who is required to collect tax at source only needs to get registration mandatorily . As you intent to sell your own goods through portal, you will not be covered above and thus you will get threshold exemption benefit, provided you should not have any inter-State supply, in which case registration will be required as per Sec 24(i) of the CGST Act.
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