Category: E-Commerce transactions

The value of a supply relating to any payment in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated, the same will be added to the output liability of the said supplier in the subsequent month succeeding in which the discrepancy is communicated. The concerned supplier will, in whose output tax liability any amount has been added, be liable to pay the tax payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 62)

The details of supplies and the amount collected during a calendar month which is furnished by every operator in his return will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return filed under section 37 for the same calendar month or any preceding calendar month. Where the details of outward supply, on which the tax has been collected, as declared by the operator in his statement do not match with the corresponding details declared by the supplier the discrepancy will be communicated to both persons.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 61)

TCS which is deposited by the E-commerce operator into government account will be reflected in the cash ledger of the registered supplier (on whose account such collection has been made) on the basis of the valid return filed by the E-commerce operator. The same can be used at the time of discharge of tax liability in respect of the supplies by the registered supplier.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 60)

The amount collected by the ecommerce operator (‘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 collected. The operator is required to file a return in Form GSTR-8 online giving details of all amounts collected by him for the outward supplies made through his portal, within 10 days of the end of the calendar month to which such statement pertains. The return should contain the names of the actual supplier(s), details of respective supplies made by them and the amount collected on their behalf.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 59)

The rate of TCS as specified in CGST Act, 2017 is payable under CGST and the equal rate of TCS is expected under the SGST Act also in effect aggregating to 2%.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS : FAQ NO. 58)

No, there is no threshold limit specified.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 56)

No clarity in Section 52. However, it may be construed to be the date of collection of consideration by the electronic commerce operator on behalf of the supplier.

No. In terms of section 24(ix) of the CGST Act, 2017 irrespective of the threshold limit the supplier who supplies goods or services or both, other than supplies specified under section 9(5) of the CGST Act, 2017, through E-commerce operator who is required to collected tax at source under Section 52 is required to obtain a registration compulsorily. However, in case of supplier where the consideration with respect to supplies made on electronic commerce is not collected by the electronic commerce operator, then in such case, such supplier will be eligible to claim the threshold benefit for registration as per section 22 of the CGST Act, 2017.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS,INTEREST, PENALTIES AND OTHER AMOUNTS)

No, section 52 does not vest any powers with any authority to increase the rate of tax more than 1% in case of collection of tax at source.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 53)