Goods and Services Tax

Question 13 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What is the concept of matching in e-commerce provisions and how it is going to work? Ans. As per section 43C (6), the details of supplies and the amount collected during a calendar month, and furnished by every operator in his statement will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return filed

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Question 12 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Ans. Yes, in terms of Section 43C (4), every operator is required to furnish a statement, electronically, of all amounts collected as TCS towards outward supplies of goods and/or services effected through it, during a calendar month

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Question 11 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Is the e-commerce operator required to furnish information to the Government? Ans. Yes. In terms of section 43C(10), an officer not below the rank of Joint Commissioner may require the operator to furnish details relating to: (i) supplies of goods / services effected through the operator during any period; (ii) stock of goods held by actual supplier making supplies

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Question 10 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. How can actual suppliers claim credit of this TCS? Ans. Such TCS which is deposited by the operator into government account will be reflected in the cash ledger 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 resp

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Question 9 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. What is the time within which such TCS is to be remitted by the e-commerce operator to Government account? Is the operator required to file any returns for this purpose? Ans. In terms of Section 43C(3) of the MGL, the amount collected by the operator is to be paid to the credit of appropriate government within 10 days after the end of the month in which amount was so

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Question 8 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. At what time/intervals should the e-commerce operator make such deductions? Ans. The timings for such collection/deduction are earlier of the two events: (i) the time of credit of any amount to the account of the actual supplier of goods and / or services; (ii) the time of payment of any amount in cash or by any other mode to such supplier. – Statutory Provisions, Act

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Question 7 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. What is Tax Collection at Source (TCS)? Ans. In terms of Section 43C(1) of the MGL, the e-commerce operator is required to collect (i.e. deduct) an amount out of the consideration paid or payable to the actual supplier of goods or services in respect of supplies of goods and / or services made through such operator. The amount so deducted/collected is called as Tax Co

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Question 6 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 6 – Q 6. Is an aggregator required to be registered under GST? Ans. Yes. Sectio

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Question 5 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Who is an aggregator? Ans. Section 43B(a) of the MGL defines aggregator to mean a person, who owns and manages an electronic platform, and by means of the application and communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator. For instance, Ola cabs

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Question 4 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption? Ans. No. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them. – Statutory Provisions, Acts, Rules, Re

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Question 3 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. Is it mandatory for e-commerce operator to obtain registration? Ans. Y

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Question 2 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. Who is an e-commerce operator? Ans. Section 43B(e) of the MGL defines an Electronic Commerce Operator (Operator) as every person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also a person providing any information or any other services incidental to or in connect

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Question 1 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is e-commerce? Ans. Section 43B(d) of the MGL defines an Electronic Commerce to mean the supply or receipt of goods and/ or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services, univ

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Question 26 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment? Ans. Yes. The taxpayer would be required to pre-register his credit card, from which the tax payment is intended, with the Common Portal maintained on GSTN. GSTN may also attempt to put in a system with banks in getting the credit card verified by taking a confirmation from the

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Question 25 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 25 – Q 25. What is Tax Collected at Source (TCS)? Ans. This provision is applicable only for E-Commerce Operator under section 43C of MGL. Every E-Commerce Operator needs to withhold a percentage (to be notified later on the recommendation of the GST Council) of the amount which is due from him to the supplier at the time of making actual payment to the supplier. Such withheld

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Question 24 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 24 – Q 24. How will the TDS Deductor account for such TDS? Ans. TDS Deductor will account for such TDS in the following ways: 1. Such deductors needs to get compulsorily registered under section 19 read with Schedule III of MGL. 2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7. 3. The a

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Question 23 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 23 – Q 23. How will the Supplier account for this TDS while filing his return?

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Question 22 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. What is TDS? Ans. TDS stands for Tax Deducted at Source (TDS). As per section 37, this provision is meant for Government and Government undertakings and other notified entities making contractual payments in excess of ₹ 10 Lakhs to suppliers. While making such payment, the concerned Government/authority shall deduct 1% of the total payable amount and remit it

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Question 21 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 21 – Q 21. What is an E-FPB? Ans. E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GST. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST,

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Question 20 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also? Ans. Section 35(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and interest for the previous period; thereafter self-assesse

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Question 19 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. What is a CIN and what is its relevance? Ans. CIN stands for Challan Identification Number. It is a 17 digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account held with them. It is

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What is a CPIN? – Question 18 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. What is a CPIN? Ans. CPIN stands for Common Portal

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Is there a validity period of challan? – Question 17 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 17 – Q 17. Is there a validity period o

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Question 16 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – Q 16. Can a challan generated online be modified? Ans. No. After logging into GSTN portal for generation of challan, payment particulars have to be fed in by the tax payer or his authorized person. He can save the challan midway for future updation. However once the challan is finalized and CPIN generated, no further changes can be made to it by the taxpayer. – Statutory

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Question 15 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 15 – Q 15. Can a taxpayer generate challan in multiple sittings? Ans. Yes, a taxpayer can partially fill in the challan form and temporarily save the challan for completion at a later stage. A saved challan can be edited before finalization. After the tax payer has finalized the challan, he will generate the challan, for use of payment of taxes. The remitter will have option o

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