What is ECO Full Form in GST?
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0 The ECO Full Form in GST is Electronic Commerce Operator. It refers to the proprietor of, operator or manager of an online platform that facilitates electronic commerce. ECO is defined in the section 2(45) in the CGST Act, 2017, and plays a significant role in online transactions between the buyer to the seller. This applies to the majority of e-commerce websites and online marketplaces that facilitate trading of products and services over the Internet.
Summary of an Electronic Commerce Operator:
An ECO is responsible for an electronic platform which makes online sales. They are responsible for handling diverse GST obligations, such as the tax collection process for Tax Collected at Source (TCS).
Legal Requirements for ECOs:
Under GST, under the GST system, ECOs are required to be the suppliers of certain kinds of services. This could include things like transporting passengers, or providing accommodation, particularly when the actual supplier of services is not required to be registered under GST because the thresholds are not being satisfied. In these instances it is the duty for the ECO to issue the invoice, collect GST and make payments to the federal government for the providers. They are outlined in documents such as that of Notification No. 17/2017 Central Tax (Rate) and generally concern the areas of transportation and hospitality.
