Frequently Asked Questions on TCS under GST (Updated as on 30.11.2018)
GST
Dated:- 1-12-2018
Frequently Asked Questions on TCS
\nSr. no.
\nQuestion
\nAnswer
\n1.
\nWhat is Electronic Commerce?
\nAs per Section 2(44) of the CGST Act, 2017, electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network.
\n2.
\nWho is an e-commerce operator?
\nAs per Section 2(45) of the CGST Act, 2017, electronic Commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
\n3.
\nWhat is Tax Collection at Source (TCS)?
\nAs per Section 52 of the CGST Act, 2017 the e-commerce operator, not being an agent, is required to collect an amount calculated at the rate not exceeding one per cent., as notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it, where the consideration with respect to such supplies<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n perator shall be mandatorily required to register irrespective of the value of supply made by him. However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Government has issued the notification No. 65\/2017 – Central Tax dated 15th November, 2017 in this regard. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n tion in that State \/ UT where it does not have physical presence. It may be noted that each State\/UT has indicated one administrative jurisdiction where all e-commerce operators having business (but not having physical presence) in that State\/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State\/UT. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ed supplier through such operator reduced by the aggregate value of taxable supplies returned to such supplier during the said month. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n llected on any supplies on which the recipient is required to pay tax on reverse charge basis. As far as import of goods is concerned since same would fall within the domain of Customs Act, 1962, it would be outside the purview of TCS. Thus, TCS is not liable to be collected on import of goods or services. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n t? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n of December following the end of the financial year in which the tax was collected in FORM GSTR-9B. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Frequently Asked Questions on TCS under GST (Updated as on 30.11.2018) GSTDated:- 1-12-2018Frequently Asked Questions on TCS Sr. no. Question Answer 1. What is Electronic Commerce? As per Section 2(44) of the CGST Act, 2017, electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network. 2. … Continue reading “Frequently Asked Questions on TCS under GST (Updated as on 30.11.2018)”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15307","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15307"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/15307\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n7.
\nWhether TCS is required to be collected by e-commerce operators on supply of services by unregistered suppliers through their portal?
\nAs per Section 24(ix) of the CGST Act, 2017, every person supplying goods or services through an ecommerce operator is mandatorily required to register. However, vide Notification 65\/2017-Central Tax dated 15th November, 2017 a person supplying services, other than supplier of services under section 9 (5) of t<\/p>\n
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\n9.
\nForeign e-commerce operator do not have place of business in India since they operate from outside. But their supplier and customers are located in India. So, in this scenario will the TCS provision be applicable to such e-commerce operator and if yes, how will foreign e-commerce operator obtain registration?
\nWhere registered supplier is supplying goods or services through a foreign e-commerce operator to a customer in India, such foreign e-commerce operator would be liable to collect TCS on such supply and would be required to obtain registration in each State \/ UT. It may be noted that each State\/UT has indicated one admin<\/p>\n
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\n12.
\nWhether value of net taxable supplies to be calculated at gross level or at GSTIN level?
\nThe value of net taxable supplies is calculated at GSTIN level.
\n13.
\nIs every e-commerce operator required to collect tax on behalf of actual supplier?
\nYes, every e-commerce operator is required to collect tax where the supplier is supplying goods or services through e-commerce operator and consideration with respect to the supply is to be collected by the said e-commerce operator.
\n14.
\nAt what time should the e-commerce operator collect TCS?
\nTCS is to be collected once supply has been made through the e-commerce operator and where the business model is that the consideration is to be collected by the e-commerce operator irrespective of the actual collection of the consideration. For example, if the supply has taken place through the e-commerce operator<\/p>\n
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\n19.
\nIs there any exemption on Gold, owing to the fact that rate of GST is only 3% and TCS on it would erode the margin for the seller?
\nNo such exemption from TCS has been granted.
\n20.
\nWhether payment of TCS through Input Tax Credit of operator for depositing TCS as per Section 52 (3) of the CGST Act, 2017 is allowed?
\nNo, payment of TCS is not allowed through Input Tax Credit of e-Commerce operator.
\n21.
\nIt is very common that customers of e-commerce companies return goods. How these sales returns are going to be adjusted?
\nAn e-commerce company is required to collect tax only on the net value of taxable supplies made through it. In other words, value of the supplies which a<\/p>\n
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\nThe amount collected by the operator is to be paid to appropriate government within 10 days after the end of the month in which the said amount was so collected.
\n24.
\nHow can actual suppliers claim credit of TCS?
\nThe amount of TCS deposited by the operator with the appropriate Government will be reflected in the electronic 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 in FORM GSTR-8 in terms of Rule 67 of the CGST Rules, 2017. The said credit can be used at the time of discharge of tax liability by the actual supplier.
\n25.
\nHow is TCS to be credited in cash ledger? Whether the refund of such TCS credit lying in the ledger would be allowed at par with the refund provisions contained in section 54(1) of the CGST Act, 2017?
\nTCS collected is to be deposited by the e-commerce operator separately under the respectvive tax head (i.e. Central tax \/ State tax \/ Union territory tax \/ I<\/p>\n
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\n27.
\nWhether interest would be applicable on non-collection of TCS?
\nAs per section 52(6) of the CGST Act, 2017, interest is applicable on omission as well in case of incorrect particulars noticed. In such a case, interest is applicable since it is a case of omission. Further penalty under section 122(vi) of the CGST Act, 2017 would also be leviable.
\n28.
\nWhat will be the place of supply for e-commerce operator for recharge of talk time of the Telecom Operator \/ recharge of DTH \/ in relation to convenience fee charged from the customers on booking of air tickets, rail supplied through its online platform?
\nAs per section 12(11) of the IGST Act, 2017, the address on record of the customer with the supplier of services is the place of supply.
\n29.
\nUnder multiple e-commerce model, Customer books a Hotel via ECO-1 who in turn is integrated with ECO-2 who has agreement with the hotelier<\/p>\n
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