Goods and Services Tax – GST – Dated:- 1-8-2017 – 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 goods or services through e-commerce operator would be entitled to threshold exemption? Answer: No. Section 24(ix) of the CGST Act,
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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 28.06.2017). 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 percent (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). (Refer to Section 52(1) of the CGST Act,
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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 which amount was so collected. (Refer to Section 52(3) of the CGST Act, 2017). Question 13: How can actual suppliers claim credit of this TCS? Answer: The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the actua
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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 remain mismatched? Answer: The amount in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated shall be added to the output liability of the said supplier i
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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 providing services through digital or electronic platform qualify as ECOs? Will they be required to collect tax at source as per the provisions of Section 52 of the GST Act? Answer: Online travel agents providing services through digital or electronic platform will fall under the category of ECOs liable to deduct TCS under Section 52 of the CGS
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ed 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 supplier can have multiple series for the same year, so long as the same series is not used across financial years. Therefore, you may have a different invoice series for each location having consecutive serial numbers running across that series. Question 23: There are sellers who are selling exempted or zero-tax goods like books through ECOs. Will marketplaces be required to collect TCS on such
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