No. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them.
(FAQ 6: E-COMMERCE)
Will an e-commerce operator be liable to pay tax in respect of supply of goods or services made through it, instead of actual supplier
Yes, but only in case of services notified under Sec. 9(5) of the CGST Act, 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)
(FAQ 5: E-COMMERCE)
Whether a person supplying goods or services through e-commerce operator would be entitled to threshold exemption
- No. Section 24(ix) of the CGST Act, 2017 lays down that the threshold exemption is not available to such persons and they would be liable to be registered irrespective of the value of supply made by them.
- This requirement is, however, applicable only if the supply is made through such electronic commerce operator who is required to collect tax at source
under section 52 of the CGST Act, 2017. - However, where the e-commerce operators are liable to pay tax on behalf of the suppliers under a notification issued under section 9 (5) of the
CGST Act, 2017, the suppliers of such services are entitled for threshold exemption.
(FAQ 4: E-COMMERCE)
Is it mandatory for e-commerce operator to obtain registration
Yes. 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.
(FAQ 3: E-COMMERCE)
Who is an e-commerce operator
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.
(FAQ 2: E-COMMERCE)
What is Electronic Commerce
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.
(FAQ 1: E-COMMERCE)
Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know:Can they issue separate series of tax invoices for their supplies from first floor, ground floor and takeaway counter
- In accordance with the provisions of Rule 46(b) of the CGST Rules, 2017 the tax invoice need to be serially numbered not exceeding sixteen characters, in one or multiple series.
- As such, they can issue different series of tax invoices as stated but it must
conform to the requirements as given in the said rule.
(FAQ 10(vii): FOOD PROCESSING)
Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know:Whether they can opt for composition (last year their turnover was more than rupees one Crore)
No. they are not eligible for composition levy as they are also supplying liquor.
( FAQ10(vi): FOOD PROCESSING)
Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know: Whether they will be eligible for ITC on crockery items purchased locally in the month of March, 2017 paying VAT of Rs.72,500/-. The goods have been shown as business assets.
If the State VAT law allowed ITC on such goods, the credit was available on the date of purchase.Section 140(1) of the SGST Act, 2017 allows them to carry forward the credit on account of VAT.
(FAQ10 (v): FOOD PROCESSING)
Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know:) Can they claim ITC of CGST and SGST paid on crockery items to be used in the restaurant
- Yes, they can claim ITC of CGST and SGST paid on crockery items to be used in the restaurant.
- It may be stated that they are entitled to the credit of even IGST paid where such goods are procured from outside the State against a tax invoice.
(FAQ 10(iv): FOOD PROCESSING)