GST on E-Commerce Operators (ECO)
By: – CA.VINOD CHAURASIA
Goods and Services Tax – GST
Dated:- 7-9-2017<\/p>\n
Introduction: This article discusses in detail about GST on E-commerce including the following:
\n\tE Commerce Business Models
\n\tUnderstanding on ECO
\n\t Registration of ECO & applicable forms
\n\t Specified services u\/s 9(5)
\n * Tax collected at source
\n\t Reporting Mismatch
\n\t Penalty
\n\tDeclaration of warehouse maintained by ECO as additional place of business by multiple supplier- Any problem ????
\n\t Place of supply
\n\tReporting in GSTR-1 by ECO
\nE Commerce Business Models
\nE-Commerce or Electronics Commerce business models can generally categorized in following categories.
\n * Business – to – Business (B2B)
\n * Business – to – Consumer (B2C)
\n * Consumer – to – Consumer (C2C)
\n * Consumer – to – Business (C2B)
\n * Business – to – Government (B2G)
\n * Government – to – Business (G2B)
\n * Government – to – Citizen (G2C)
\nB<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n rge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post\/advertisement on the website. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n -commerce & the person who owns, operates or manages such market place is called Electronic Commerce Operator (ECO). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n l the provisions of the Act shall apply to such ECO as if he is the supplier liable to pay tax in relation to the supply of such services. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n y such ECO. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n through ECO is to be reported in point no. 7B of GSTR-1 for every ECO & rate wise showing below details: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d by such ECO and declared as additional palace of business by such suppliers. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n be collected on “the net value of taxable supplies” made through an e-commerce operators. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ; Less: Supplies returned = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. ” = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" GST on E-Commerce Operators (ECO)By: – CA.VINOD CHAURASIAGoods and Services Tax – GSTDated:- 7-9-2017 Introduction: This article discusses in detail about GST on E-commerce including the following: E Commerce Business Models Understanding on ECO Registration of ECO & applicable forms Specified services u\/s 9(5) * Tax collected at source Reporting Mismatch Penalty Declaration of warehouse … Continue reading “GST on E-Commerce Operators (ECO)”<\/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-7638","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7638","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=7638"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7638\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nConsumer – to – Business (C2B)
\nIn this model, a consumer approaches website showing multiple business organizations for a particular service. Consumer places an estimate of amount he\/she wants to spend for a particular service. For example, comparison of interest rates of personal loan\/ car loan provided by various banks via website. Business organization who fulfills the consumer's requirement within specified budget approaches the customer and provides its services.
\nBusiness – to – Government (B2G)
\nB2G model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government.
\nGovernment – to – Business (G2B)
\nGovernment uses B2G model <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nRegistration of e-commerce operator
\nCompulsory Registration for ECO
\nAs per sec. 24(x) of the CGST Act, 2017 the benefit of threshold exemption of Rs. 20L or 10L is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them.
\nCompulsory Registration for person supplying through ECO
\nAs per Section 24(ix) of the CGST Act, 2017, the threshold exemption is also not available to persons supplying goods or services through e-commerce operator and they would be liable to be registered irrespective of the value of supply made by them where such electronic commerce operator is required to collect tax at source under section 52 of the CGST Act, 2017.
\nFurthermore, as per sec. 10(2)(d), a composition dealer cannot supply goods through an ECO who is required to collect TCS u\/s 52.
\nSpecified services u\/s 9(5)<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nA similar provision for inter-State supply is provided for in Sec. 5(5) of the IGST Act, 2017.
\nLevy and collection
\nEvery e-commerce transaction involves below 3 parties:
\n * Seller;
\n * Buyer;
\n * ECO.
\nAnd it involves below 2 types of transaction:
\n * Between Seller & Buyer – Sale of Goods ;
\n * Between Seller & ECO – Provision of market place service.
\nGST shall be levied on both transactions:
\n * Between seller & buyer = GST on entire value of goods \/ services supplied (GST shall be paid by the supplier except in case of Sec 9(5) services)
\n * Seller & ECO = GST on commission value \/ other charges earned &n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nECO should make the tax collection during the month in which the consideration amount is collected from the recipient.
\nThe amount of TCS collected by the ECO is to be deposited to the Government within 10 days after the end of the month in which amount was so collected.
\nReporting
\nEvery ECO is required to furnish, a statement in FORM GSTR-8, electronically within 10 days after the end of such month, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month.
\nThe amount of TCS paid by the ECO 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 GSTR-8 filed by the e-commerce operator.
\nThis TCS can be used at the time of discharge of tax liability in respect of the supplies made by the actual supplier.
\nThe operator is <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n * GSTIN of ECO
\n * Consolidated rate wise outward supply
\n * Tax rate
\n * Taxable value
\n * Tax amount
\n * Place of supply
\n\tTaxable outward intra-state supplies made to unregistered persons through ECO is to be reported in point no. 7A(2) of GSTR-1 for every ECO & rate wise showing below details:
\n * GSTIN of ECO
\n * Consolidated rate wise outward supply
\n * Tax rate
\n * Taxable value
\n * Tax amount
\nReporting Mismatch
\nThe details of supplies furnished by every ECO in his month GSTR-08 will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his monthly or any preceding month GSTR-01.
\nWhere the details of outward supplies declared by the ECO in his monthly GSTR-08 do not match with the corresponding details declared by the actual supplier in his monthly GSTR-01, the discrepancy shall be communicated to both persons.\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nPenalty for failure to comply with above notice u\/s 52(13):
\nup to Rs. 25,000\/- u\/s 122
\nAdditional Place of Business
\nMany sellers supplying goods through ECO may have common places of business, especially if their goods are stored in a shared facility operated by the ECO. This will result the same additional place of business being registered by multiple suppliers.
\nUnder GST, there is no restriction about use of a premise by multiple persons provided if he has requisite documents for use of the premises as his place of business (like ownership document, agreement with the owner etc.) and the registered person shall have to comply with the requirements of maintaining records as per section 35 of the CGS T Act, 2017 and Rules 56 to 58 of the CGST Rules, 2017.
\nOnline Travel agents as ECO
\nOnline travel agents providing services through digital or electronic platform will fall under the category of ECOs lia<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nWhen the supply itself is not taxable, the question of TCS does not arise.
\nQuery -3:
\nIf someone is selling his own products through a web site hosted by himself, then he shall come under the definition of an “electronic commerce operator” as per section 2 (44) and 2(45) of the CGST Act, 2017. Is TCS u\/s 52 applicable to him ?
\nAns:
\nAccording to Section 52 of the Act, 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 e-commerce operator.
\nIn such cases where someone is selling their own products through his own website, there is no requirement to collect tax at source as per the provisions of this Section. These transactions will be liable to GST at the prevailing rates.
\nQuery- 4:
\nWhat is the impact of GST on goods returned after Sale ?
\nAns:
\nAn e-commerce company is required to coll<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n Less: Supplies under Section 9(5)
\nPlace of supply in respect of Goods sold through E-commerce operator under GST
\nQ1. Whethe<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nFrom the above, it may construed that the ECO shall not be agent for the purpose GST.
\nECO is an independent service provider and earning commission for the services rendered by it and its primary responsibility is collect TCS @ 2% on the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.
\nFrom the above discussion, it is amply clear that the ECO is not working in the capacity of agent or otherwise. It is only providing the online market place services and earning subscription fees or c<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n