What is the Full Form of ECO in GST?
The ECO Full Form in GST is Electronic Commerce Operator. It refers to the owner, operator, or manager of any kind of an online platform for electronic commerce. ECO is defined under Section 2(45) of the CGST Act, 2017, and it plays an important role in online transactions from a buyer to a seller. This role extends to all the major e-commerce sites and online marketplaces that facilitate the trading of goods and services via the Internet.
Summary of an Electronic Commerce Operator:
An ECO is in charge of an electronic platform that makes online sales. They are tasked with handling various GST obligations, including the collection of Tax Collected at Source (TCS).
Legal Requirements for ECOs:
In the GST regime, ECOs are required to be the supplier of a number of specified kinds of services. This may include services such as transporting passengers or providing accommodation, especially in those situations where the actual provider of services may not be required to register under GST due to the thresholds not being met. In such cases, it would be the responsibility of the ECO to issue the invoice, collect the GST, and pay the government on behalf of such suppliers. These are highlighted in papers like the Notification No. 17/2017-Central Tax (Rate) and generally cover sectors like transportation and hospitality.