Goods and Services Tax – GST – By: – Abhishek Gupta – Dated:- 30-12-2016 Last Replied Date:- 9-1-2017 – E Commerce Recent 5 years bang in e-commerce industry has changed the way of doing business in India. According to industry body Internet and Mobile Association of India (IAMAI) and IMRB, e-commerce industry in India is expected to nearly double to ₹ 2, 11, 005 crore by December, 2016. This industry has shown huge potential of growth in domestic markets of India despite the fact that 100% foreign direct investment is allowed only in B2B commerce and none in B2C model. Meaning of E-commerce and E-commerce operator Electronic commerce, commonly written as e-commerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet or online social networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electron
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ng as a marketplace, providing services such as marketing, technology support, warehousing and logistic support to the sellers. Existing Law: Recently, service tax law has introduced the concept of an aggregator , whereby the e-commerce company must pay tax on services provided by service providers under the brand name of the e-commerce company. However, the sector strongly opposes the imposition of this levy as they stand on the view that vendor should comply all the provisions related to supply of goods and/or services and that no liability should accrue to e-commerce players. View of judiciary in case of VAT on e-commerce: In recent landmark case of Flipkart Internet (P.) Ltd. Versus State of Kerala [2015 (11) TMI 159 – KERALA HIGH COURT] , it was held that assessee who was an online service provider is not liable to pay any VAT liability and file returns as department s view that the situs of the virtual shop can be traced to Kerala is legally flawed. The same view is upheld by Kar
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ollected by the operator shall be paid to the account of the appropriate government within 10 days from the end of the month in which such collection is made. 1.5 Filing of Return [Section 56(3)] for operators E-commerce companies falling under section 56 will also have to file return(called as statement) and contains the following information: Amount of TCS deducted Outward supply of goods or services effected through operator Return of goods or services through operator TCS return has to be filed by the operator within 10 days after the end of each month containing above information. Details of goods or services supplied in the statement will be cross-verified with the corresponding details of outward supply of supplier. If details provided are not tallied then same issue will be communicated to both the parties. If above problem is not rectified , then the unmatched amount will be added to the liability of supplier, if value of outward supply furnished by operator is more than the v
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