Amendment to Section 122: Penalties for Electronic Commerce Operators
A new sub-section (1B) has been added to Section 122 of the Central Goods and Services Tax Act. This amendment targets electronic commerce operators with specific responsibilities. Firstly, if an operator allows an unregistered person, who is not exempt from registration, to supply goods or services through its platform, it will face penalties. Secondly, if an operator permits inter-State supply by someone not eligible for such transactions, it will also be penalized. Lastly, if an operator fails to provide accurate details in the required statement regarding outward supplies by a person exempt from registration, it will incur penalties. The penalty imposed will be either ten thousand rupees or an amount equal to the tax that would have been due if the supply was made by a registered person, whichever is higher. This amendment emphasizes strict compliance by e-commerce operators in adhering to registration and reporting requirements under the GST Act.
Note: It is an AI generated summary for reference purpose only.
Amendment of section 122.
155. In section 122 of the Central Goods and Services Tax Act, after sub-section (1A), the following sub-section shall be inserted, namely:—
"(1B) Any electronic commerce operator who—
(i) allows a supply of goods or services or both through it by an unregistered person other than a person exempted from registration by a notification issued under this Act to make such supply;
(ii) allows an inter-State supply of goods or services or both through it by a person who is not eligible to make such inter-State supply; or
(iii) fails to furnish the correct details in the statement to be furnished under sub-section (4) of section 52 of any outward supply of goods effected through it by a person exempted from obtaining registration under this Act,
shall be liable to pay a penalty of ten thousand rupees, or an amount equivalent to the amount of tax involved had such supply been made by a registered person other than a person paying tax under section 10, whichever is higher.".
