An e-commerce set-up is integral to every sector – FMCG, Electronics, Logistics, Banking and Financial services, etc. Integration of e-commerce operations with the respective industry can throw up intriguing issues. Conventional business practices are squandered by fluid business models (without appropriate legal documentation) being adopted by new-gen start-ups, hence posing difficulty in the ascertainment of the true nature of the transaction (sometimes even identifying its true supplier). In an earlier article, we discussed some of the challenges faced in the implementation of GST for the said sector. Certain further conceptual issues have been discussed in the ensuing paragraphs.
STATE WISE REGISTRATION
E-commerce marketplaces operate on a time-sensitive delivery model to end consumers. For this purpose, local hubs are being set up nearest to the customers’ locations in every part of the country. The said marketplaces operate the hub for logistical and last mile delivery of goods by suppliers spread across various locations. Goods from multiple parts are picked up and stocked at their locations. Marketplaces claim that they merely provide e-commerce and logistical support services to the vendors enlisted on their portal. Yet, the question of the requirement of registration of the hubs by (a) Marketplace and/or (b) Listed vendor falls into consideration. The said analysis requires the application of the definition of ‘p
