services by way of house-keeping, such as plumbing, carpentering etc, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act
This entry covers housekeeping and home maintenance services, when such services are provided through a digital platform or mobile app, and the actual service provider is not liable for registration under Section 22(1) of the CGST Act.
In such cases, the electronic commerce operator (ECO)-such as Urban Clap (now Urban Company), Housejoy, etc.-is made liable to pay GST under reverse charge, i.e., under Section 9(5)
This entry was designed to bring within the GST net individual household service providers and gig economy workers who operate informally through mobile apps or platforms, often without formal invoicing or registration. Instead of burdening them with compliance, the liability is shifted to the ECO, which is organized, well-funded, and technologically capable of managing tax compliance.
Plumber Booked via UrbanClap - Unregistered Supplier :-
Mr. A books a plumbing service via UrbanClap. The plumber is Mr. X, who earns Rs. 7 lakhs a year. Since Mr. X is not liable for registration under Section 22(1), UrbanClap must pay GST under Section 9(5).
Carpenter Booked via Housejoy - Registered Supplier :-
Ms. B books a carpenter through Housejoy. The carpenter is M/s Woodworks Pvt. Ltd., whose turnover is Rs. 35 lakhs. Here, the supplier is liable for registration, so Housejoy is not liable, and M/s Woodworks pays GST under forward charge.
Freelance Cleaner on App - ECO Pays :-
An unregistered individual cleaner provides services through a cleaning app. Since they are below the threshold and not liable for registration, the ECO must pay GST under Section 9(5).