GST — FAQ on E-Commerce dated 31-07-2017 dated 31-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Question 1 : What is Electronic Commerce?
Answer : Electronic Commerce has been defined in Sec. 2(44) of the CGST Act, 2017 to mean the supply of goods or services or both, including digital products over digital or electronic network.
Question 2 : Who is an e-commerce operator?
Answer : Electronic Commerce Operator has been defined in Sec. 2(45) of the CGST Act, 2017 to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
Question 3 : Is it mandatory for e-commerce operator to obtain registration?
Answer : Yes. As per Section 24(x) of the CGST Act, 2017 the benefit of threshold exemption is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them.
Question 4 : Whether a person supplying go
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be paid by the electronic commerce operator if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the supplier liable to pay tax in relation to the supply of such services. A similar provision for inter-State supply is provided for in Sec. 5(5) of the IGST Act, 2017. [Refer to Notification No. 17/2017-Central Tax (Rate) and 14/2017-Integrated Tax (Rate) dated 28-6-2017].
Question 6 : Will threshold exemption be available to electronic commerce operators liable to pay tax on notified services?
Answer : No. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them.
Question 7 : What is Tax Collection at Source (TCS)?
Answer : The e-commerce operator is required to collect an amount at the rate of one per cent (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it, where the consideration
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eturned to the suppliers during the said month. [Refer to Explanation to Section 52(1) of the CGST Act, 2017].
Question 10 : Is every e-commerce operator required to collect tax on behalf of actual supplier?
Answer : Yes, every e-commerce operator [other than an operator required to pay tax under Section 9(5) of the CGST Act, 2017] is required to collect tax where consideration with respect to a taxable supply is collected by such e-commerce operator. [Refer to Section 52(1) of the CGST Act, 2017].
Question 11 : What time should the e-commerce operator make such collection?
Answer : The e-commerce operator should make the collection during the month in which the consideration amount is collected from the recipient.
Question 12 : What is the time within which such TCS is to be remitted by the e-commerce operator to Government?
Answer : The amount collected by the operator is to be paid to the government within 10 days after the end of the month in whi
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thin ten days after the end of such month. The statement will be filed in FORM GSTR-8. The operator is also required to file an annual statement by 31st day of December following the end of the financial year in which the tax was collected. [Refer to Section 52(4) and Section 52(5) of the CGST Act, 2017].
Question 15 : What is the concept of matching in e-commerce provisions and how it is going to work?
Answer : The details of supplies furnished by every operator in his statement for the month will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same month or any preceding month. Where the details of outward supplies declared by the operator in his statement do not match with the corresponding details declared by the supplier, the discrepancy shall be communicated to both persons. [Refer to Section 52(8) and Section 52(9) of the CGST Act, 2017].
Question 16 : What will happen if the details
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nish such details within a period of 15 working days from the date of service of such notice. [Refer to Section 52(12), (13) and (14) of the CGST Act, 2017].
Question 18 : The sellers supplying goods through e-Commerce operators (ECO) may have common places of business, especially if their goods are stored in a shared facility operated by the ECO. This will result in the same additional place of business being registered by multiple suppliers. Is this allowed?
Answer : Yes, this is allowed. Any registered person can declare a premises as a place of business if he has requisite documents for use of the premises as his place of business (like ownership document, agreement with the owner etc.) and there is no restriction about use of a premises by multiple persons. The registered person shall have to comply with the requirements of maintaining records as per Section 35 of the CGST Act, 2017 and Rules 56 to 58 of the CGST Rules, 2017.
Question 19 : Do travel agents provid
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ted on the entire value of the transaction?
Answer : Section 52(1) of the CGST Act, 2017 mandates that TCS is to be collected on the net taxable value of such supplies in respect of which the ECO collects the consideration. The amount collected should be duly reported in GSTR-8 and remitted to the Government. Any such amount collected will be available to the concerned supplier as credit in his electronic cash ledger.
Question 22 : GST requires a dealer to maintain a consecutive serial number for invoices. If we are supplying from multiple locations, do we need to centrally maintain the invoice numbers serially?
Answer : Section 46 of the CGST Rules, 2017 provides that invoice may have “a consecutive serial number not exceeding sixteen characters, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as “-” and “/” respectively, and any combination thereof, unique for a financial year”. Therefore, a suppl
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ver, according to Section 52 of the Act ibid, TCS is required to be collected on the net value of taxable supplies made through it by other suppliers where the consideration is to be collected by the ECO. In cases where someone is selling their own products through a website, there is no requirement to collect tax at source as per the provisions of this Section. These transactions will be liable to GST at the prevailing rates.
Question 25 : We purchase goods from different vendors and are selling them on our website under our own billing. Is TCS required to be collected on such supplies?
Answer : No. According to Section 52 of the CGST Act, 2017, TCS is required to be collected on the net value of taxable supplies made through it by other suppliers where the consideration is to be collected by the ECO. In this case, there are two transactions – where you purchase the goods from the vendors, and where you sell it through your website. For the first transaction, GST is leviab
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