Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 19-8-2017 – E-commerce related concepts and other provisions are as follows: 1. 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. Examples: a) In case of supply of goods : www.amazon.com , www.flipkart.com etc. b) In case of services : www.makemytrip.com, www.trivigo.com, www.bookmyshow.com, etc. 2. 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. Examples: a) Flipkart b) Amazon c) Bookmyshow, etc. 3. 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. 4. Section 24(ix) of the CGST Act, 2017
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t, 2017. In such cases tax shall 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 28.06.2017). Example, In case of hotel booking through e commerce operators such as make my trip, trivigo etc, such e commerce operator would be liable to collect and pay TCS to the Government. 6. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them. 7. The e-commerce operator is required to collect an amount at the rate of one (1) percent of the net value of taxable supplies made through it, where the consideration with respect to such s
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ax 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). 11. The e-commerce operator should make the collection during the month in which the consideration amount is collected from the recipient. 12. 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). 13. The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies made by the actual supplier. (Refer to Section 52(7) of the CGST Act, 2017). 14. Every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods
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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 in his return for the month succeeding the month in which the discrepancy is communicated. The concerned supplier in whose output tax liability any amount has been added, shall be liable to pay the tax payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment. (Refer to Section 52(10) and Section 52(11) of the CGST Act, 2017). 17. Any officer not below the rank of Deputy Commissioner may issue a notice to the electronic commerce operator to furnish 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). 18. The sellers supplying goods through e-Commerce opera
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ording to the provisions of Section 52 of the CGST Act, 2017. The TCS will be deducted accordingly. 21. There are cases in which the ECO does not provide invoicing solution to the seller. In such cases, invoice is generated by the seller and received by the buyer without ECO getting to know about it. The payment flows through the ECO. In such cases, 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 FORM 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. 22. GST requires a dealer to maintain a consecutive serial number for invoices. If suppliers are supplying from multiple locations, a supplier can have multiple series for the same year, so long as the same series is not used across financial years. Therefore, suppliers may
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