Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-11-2017 Last Replied Date:- 21-11-2017 – Chapter X of the CGST Act, 2017 contains provisions in relation Tax Collection at Source (TCS) including e-commerce in section 52. These provisions will be effective from a notified date. However, e-commerce and e-commerce operator are defined in section 2(44) and 2(45) of the CGST Act, 2017 respectively. TCS is collected as a tax by the e-commerce operator on behalf of supplier and is only a method of collection of tax through the operator (just like TDS) and the power to collect TCS is without prejudice to any other mode of recovery from the operator. According to section 52 of the GST Act, every E-commerce operator is required to collect an amount not exceeding 1% of the net value of taxable supplies, made through it by the other suppliers where the consideration of such supplies is to be collected by electronic commerce operator. The tax so collected is called tax collecti
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ST Act, 2017 are required to be excluded for the purpose of TCS. Section 9(5) provides that in respect of notified services, the total tax in respect of those services is required to be paid by e-commerce operator. E-commerce operators will have to collect and deposit tax collected at source (TCS) in addition to what GST is payable in the states in respect of supply of their own goods and services. This tax will have to be collected on payment to vendors which will be subject to reconciliation at a later stage. In terms of section 52(1), collection of tax at source is mandatory irrespective of any other provisions in GST Act or in any contract, arrangement or memorandum of understanding. This provision casts an obligation on the operator to collect an amount at the given rate out of the proceeds payable to the actual supplier of goods or services making supplies through it. In terms of section 52(7) of the CGST Act, 2017, TCS collected from the supplier and deposited with the Governmen
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.e., within ten days after the end of the month in which collection is made. Such TCS amount shall be paid to the credit of appropriate Government by the e-commerce operator. As per section 52(4) of the CGST Act, 2017 an Operator is required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month through an e-commerce operator containing the details of the containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) of section 52 of the CGST Act, 2017 during a month within ten days after the end of such month. The details furnished by the operator under sub-rule (1) shall be made available electronically to each of the suppliers in Part C of FORM GSTR-2A on the common portal after the due date of filing of FORM GSTR-8. Under section 52(5), the e-commerce operator besides collecting and depositing tax by 10th of
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operator. 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 leviable, and will need to be paid to your vendor, on which credit is available for you. The second transaction is a supply on your own account and not by other suppliers and there is no requirement to collect tax at source. The transaction will attract GST at the prevailing rates. Any amount collected and paid to the credit of the appropriate Government by e-commerce operator shall be deemed to be a payment of tax on behalf of the concerned supplier and the supplier can claim credit in his electronic cash ledger. In terms of section 52(12) of the CGST Act, 2017, Any authority not below the rank of Deputy Com
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nt of TCS is collected and deposited by e-commerce operator will be eligible to claim credit of such amount in their electronic cash ledger. The details of supplies, deductions and deposit furnished by e-commerce operator should be matched with the periodical returns furnished by such supplier. On its matching with the details declared by the supplier, the electronic cash ledger of such supplier will be credited with an amount deposited by e-commerce operator on their behalf. In terms of sub-sections 9 and 10 of section 52 of the CGST Act, 2017, the details of the supplies, including the value of supplies, submitted by every Operator in the statements will be matched with the details of supplies submitted by all such suppliers in their returns. If there is any discrepancy in the value of supplies, the same would be communicated to both of them. If such discrepancy in value is not rectified within the given time, then such amount would be added to the output tax liability of such supple
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