India’s platform economy now runs on a distinct set of GST rules. When you book a cab on Ola or Uber, order food through Swiggy or Zomato, or hire a plumber via Urban Company, the tax treatment is governed not only by the underlying supplier but by the platform itself. Two mechanisms sit at the heart of this framework: Section 9(5) reverse charge and Tax Collected at Source (TCS) under Section 52 of the CGST Act. This guide explains, for 2026, who qualifies as an Electronic Commerce Operator (ECO) or aggregator, which services trigger platform-level liability, and how registration, invoicing and returns work.<\/p>\n
Under Section 2(45) of the CGST Act, an Electronic Commerce Operator<\/strong> is any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce. Electronic commerce, in turn, is the supply of goods or services over a digital network. This is deliberately broad: marketplaces, ride-hailing apps, food-delivery apps, home-services platforms and cloud-based booking engines all fall within it.<\/p>\n The word “aggregator” is often used interchangeably, but its GST consequence depends on the service being aggregated. An ECO can play one of two roles: it may be treated as the deemed supplier for certain notified services under Section 9(5), or it may act as a marketplace that collects TCS under Section 52 on supplies made by independent sellers through it. Some platforms do both, for different lines of business.<\/p>\n Section 9(5) empowers the Government to notify categories of services where the ECO is liable to pay GST as if it were the supplier<\/strong>. For these services, the entire tax compliance shifts to the platform, and the actual service provider does not charge GST on that supply. The currently notified categories are:<\/p>\n For 9(5) supplies, the platform pays tax in cash and cannot use the input tax credit of the underlying supplier against that liability. Importantly, TCS under Section 52 does not<\/em> apply to supplies covered by 9(5), because the platform is already discharging the full tax.<\/p>\n Where an ECO merely facilitates supplies by other registered sellers and collects the consideration, it must collect Tax at Source<\/strong> on the net value of taxable supplies. “Net value” means the aggregate taxable supplies of goods or services made through the platform, less supplies returned during the month.<\/p>\n The TCS rate was reduced with effect from 10 July 2024. It now stands at 0.25% CGST plus 0.25% SGST (0.5% in total) for intra-State supplies, and 0.5% IGST for inter-State supplies<\/strong>, down from the earlier 1%. The collected amount is not a cost to the seller: it is credited to the seller’s electronic cash ledger and can be used to offset output tax.<\/p>\n The ECO deposits the TCS with the Government and files a monthly statement. The seller then sees this credit auto-populated and claims it. This keeps a data trail of every platform sale and helps the department reconcile marketplace turnover against the seller’s own returns.<\/p>\n Registration rules are stricter for the digital economy than for ordinary businesses:<\/p>\n Getting the invoice right is where many platforms and sellers slip up. For a Section 9(5) service, the ECO raises the tax invoice to the customer and pays the GST; the underlying driver, cook or technician does not issue a GST invoice for that supply. For all other marketplace supplies, the registered seller issues the tax invoice<\/strong> to the customer, charges GST, and the ECO layers TCS on top. Clear contracts between the platform and its partners should specify who invoices, who collects tax, and how credits reconcile.<\/p>\n Most gig workers, drivers, delivery partners and home-service professionals operate below the GST registration threshold. Because their services usually fall within Section 9(5), they are not required to register or file GST returns for platform income, as the aggregator discharges the tax. This is a deliberate relief that keeps individual gig earners out of routine GST compliance. Separately, under the Code on Social Security, aggregators are expected to contribute towards social security for gig and platform workers; that is a labour-law obligation distinct from GST, but relevant to the same business models.<\/p>\n An ECO that collects TCS files Form GSTR-8<\/strong> every month, by the 10th of the following month. It reports the gross supplies made through the platform, supplies returned, and the net TCS collected. The details flow to each seller’s records for credit. An annual reconciliation follows, and mismatches between GSTR-8 and sellers’ returns are a common trigger for departmental notices. Robust monthly reconciliation is therefore essential, and professional support such as TAXAJ’s GST compliance service<\/a> can help platforms and sellers keep their filings aligned.<\/p>\n No. Passenger transport through the app is a Section 9(5) service, so Uber pays the GST and the individual driver need not register for that income.<\/p>\n No. Restaurant service through these platforms is covered by Section 9(5), so the platform pays GST directly and TCS under Section 52 does not apply to it.<\/p>\n 0.5% in total, that is 0.25% CGST plus 0.25% SGST for intra-State supplies, or 0.5% IGST for inter-State supplies, with effect from 10 July 2024.<\/p>\n Yes. TCS is credited to the seller’s electronic cash ledger and can be used to pay output tax, so it is not an additional cost.<\/p>\n By the 10th of the month following the month in which the TCS was collected.<\/p>\n The GST framework for aggregators and ECOs is designed to capture platform commerce efficiently while sparing small suppliers routine compliance. For platforms, the key is disciplined classification of each supply as either a 9(5) service or a TCS-facilitated sale, accurate invoicing, and timely, reconciled GSTR-8 filing. For sellers and gig workers, understanding where liability sits avoids both over-compliance and unexpected notices. When in doubt, a review by qualified GST professionals is the safest route through this evolving area.<\/p>\n","protected":false},"excerpt":{"rendered":" India’s platform economy now runs on a distinct set of GST rules. When you book a cab on Ola or Uber, order food through Swiggy or Zomato, or hire a plumber via Urban Company, the tax treatment is governed not only by the underlying supplier but by the platform itself. Two mechanisms sit at the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-475","post","type-post","status-publish","format-standard","hentry","category-compliances"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=475"}],"version-history":[{"count":0,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/475\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Section 9(5): Notified Services on Reverse Charge<\/h2>\n
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TCS under Section 52<\/h2>\n
How TCS Flows to the Seller<\/h3>\n
Registration Requirements<\/h2>\n
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Invoicing Responsibilities<\/h2>\n
Gig and Platform Workers<\/h2>\n
Filing GSTR-8<\/h2>\n
Recent Developments<\/h2>\n
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Frequently Asked Questions<\/h2>\n
Does a driver on Uber need GST registration?<\/h3>\n
Is TCS charged on food ordered through Swiggy or Zomato?<\/h3>\n
What is the current TCS rate?<\/h3>\n
Can a seller claim the TCS collected?<\/h3>\n
When is GSTR-8 due?<\/h3>\n