Goods and Services Tax – GST – By: – Anuj Bansal – Dated:- 22-9-2018 – Section 52 of CGST Act governs the provision of TCS in case of Electronic Commerce Operator(here after referred as ECO ). By press release dated 26/6/2017, Government has deferred the applicability of provisions of Section 52 relating to TCS, until further notice. The GST Council in their 22nd meeting held on 6th October, 2017 at New Delhi decided that operationalisation of TCS provisions shall be postponed till 31.03.2018. Thereafter, vide press release Dt.10/03/18, Government during 26th meeting of GST council held in New Delhi, decided that provisions relation to TCS stand suspended till 30.06.18. Then again vide press release Dt.29.06.18 provisions of Section 52 were suspended till 30.09.18 by the Government.Now finally, vide Notification no. 51/2018- Central Tax, Dt. 13.09.18 provisions of section 52 shall come in force from 01.10.2018, which is going to open a Pandora box like reconciliation, filing of return
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ors through ECO, Government has introduced provisions of TCS in GST Act. ECO is required to collect TCS of 1% from net taxable value of supplies made through them. For an example,suppose a certain product is sold at ₹ 10000/- through an Operator by a seller. The Operator would collect tax @ 1% of the net value of ₹ 10000/- i.e. ₹ 100/- as TCS. Further, following definitions are relevant before we proceed to analyse section 52 of CGST Act:- According to Section 2(45) of CGST Act, Electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. According to Section 2(44) of CGST Act, Electronic commerce means the supply of goods or services or both, including digital products over digital or electronic network. Section 52 of CGST Act and its analysis: As per above section, Every Electronic commerce operator not being an agent, shall collect an amount calculated at such rate not exceeding 1%,
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mmercial places meant for residential or lodging purposes, except where such hotel, guest house etc. are liable for registration. RATE OF TCS, COLLECTION AND PAYMENT OF TAX Tax shall be collected by ECO @ 1% of net value of taxable supplies made through it, where payment of such supplies has to be collected by ECO.After determining the value of turnover as stated above, tax has to be collected on monthly basis. Tax collected shall be deposited by the ECO to the Government within 10 days after the end of the month in which such collection is made. Tax collected has to be bifurcated in IGST, CGST, SGST and Union territory tax as is charged on invoice and deposited accordingly. Meaning, in case of Intra- state transaction TCS will be bifurcated in (0.5% CGST+ 0.5% SGST) and shall be deposited accordingly. While in case of Inter-state transaction, TCS of 1% will be deposited towards IGST as per Sectoral FAQ issued by CBEC. Rate of TCS has also been notified vide notifications Dt. 20.09.18
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by supplier in GSTR 1. Both the details should match. In case of discrepancy, both the parties shall be communicated discrepancies. The discrepancies shall be communicated in Form GST-MIS-3 to the supplier and GST MIS-4 to the ECO. As per CGST Rules 79(2) & 79(3) both of them should rectify the same. If rectification is not done in the month of communication of discrepancy, and if value of outward supply declared by operator is more than that of supplier, tax liability to the extent of discrepancy shall be added to output tax liability of supplier in following month in which discrepancy was communicated. Concern supplier is required to pay the tax along with the interest specified. DEPARTMENT MAY CALL DETAILS The department may issue a notice to theoperator to furnish details about: Supplies of goods/or services effected during any period, or Stock of goods held by the suppliers in the godowns or warehouse managed by such operators and declared as additional places of business by s
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