Sanjay of New Delhi made a request for a Motor cab to "Destiny Rides" for travelling from New Delhi to Jaipur (Rajasthan). Sanjay after paying the cab charges using his debit card, gets details of the driver Joga Singh a

As per section 5(5) of the Integrated Goods and Services Tax Act, 2017, the Government may, on the recommendations of the Council, by notification, specify categories of services, the tax on inter-state supplies which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services. As per section 2(45) of the Central Goods and Services Tax Act, 2017, "Electronic commerce operator" (ECO) means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. The Central Government has notified services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle and the tax on inter-state supplies which shall be paid by the electronic commerce operator. Thus, in the above case D.T. Ltd., is liable to pay GST in respect of supply of the said service. Thus, the contention of D. T. Ltd. that Joga Singh should pay GST on the same as he is provider of service is not correct. Further, proviso to section 5(5) of the Integrated Goods and Services Tax Act, 2017, provides that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax. Where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax. Thus, even if D.T. Ltd, is located in New York (USA) a non-taxable territory its liability to pay GST will not be extinguished. The representative of D.T. Ltd or the person appointed by D.T. Ltd will be required to discharge the GST liability on behalf of D.T. Ltd.