Regulatory Compliance Guide
GST Section 9(5) vs Section 52 for Logistics Platforms
For digital aggregators in the logistics space, GST compliance hinges on whether the platform operates under Section 9(5) or Section 52 of the CGST Act. Here is what transporters and shippers need to know.
Key fact: GoMyTruck charges a transparent 5% platform commission — vs the standard 10–20% broker margins. As a trusted Motor Vehicle Aggregator, we ensure 100% compliance with all GST ECO provisions to protect our shippers and fleet owners.
Section 52: Tax Collected at Source (TCS)
Under Section 52, an Electronic Commerce Operator (ECO) is required to collect a small percentage (TCS) on the net value of taxable supplies made through it by other suppliers. The platform facilitates the transaction but does not assume the tax liability of the underlying service.
Section 9(5): E-Commerce Operator as the Supplier
Section 9(5) notifies specific services where the ECO is liable to pay GST as if they were the actual supplier. For passenger transport (like cabs), Section 9(5) clearly applies. For goods transport, the application depends on the exact nature of the platform's contract and whether it functions as a GTA.
Impact on GTAs and Fleet Owners
If a platform falls under Section 52, fleet owners (the actual suppliers) handle their own GST compliance, subject to the TCS collected by the platform. If the platform operates under Section 9(5), the platform itself assumes the GST liability, removing that compliance burden from the individual transporter.
GST laws governing e-commerce and aggregators are complex and continually evolving. This summary does not constitute legal or tax advice. Consult a Chartered Accountant for specific guidance.