Order Date – 28 February 2024

Facts – 

• The Applicant, M/s. Changejar Technologies Pvt. Ltd., provides an online platform for offering sale of DGIPL's gold, under the distribution agreement with Digital Gold India Private Limited.
• They are one of the channel partners of DGIPL such as Tanishq, Amazon etc.,. Digital gold is a non-custodial form of owning gold which is vaulted by the seller. 

Issue – 

• Whether the applicant is required to obtain registration as an E-commerce operator?

Order – 

• The AAR observed that since the sale of DGIPL products happen through the applicant's online platform, the applicant squarely fits into the definition and qualifies to be an Electronic Commerce Operator.
• Since all conditions of Section 52 are satisfied, the applicant is liable to collect the tax u/s 52 of the CGST Act 2017 read with Notification 52/2018-CT(R) on the net value of the taxable supply.
• The applicant, being an electronic commerce operator, is required to collect tax at source under Section 52 of the CGST Act 2017 and thus is liable to be registered compulsorily under Section 24(x) of the CGST Act 2017 read with the provisions of the Rule 12 of CGST Rules 2017.