ॐ असतो मा सद्गमय
As per the provisions of Section 52(1), an electronic commerce operator shall collect tax at source only where the consideration in respect of supplies is to be collected by the operator.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 52)
Yes, the taxable supplies returned to the supplier on the electronic commerce is allowed as a deduction while calculating the net value.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 51)
No, net value does not include transactions pertaining to supply of services notified by the Government under section 9(5) of the CGST Act, 2017. Net value of taxable supplies is the aggregate value of taxable supplies of goods or services or both, other than services notified under section 9(5) of the CGST Act, 2017, made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 50)
The rate of tax for collection of tax source prescribed in the CGST Act, 2017 is 1%. The said 1% would be on the net value of taxable supplies made through the electronic commerce by other suppliers where the consideration with respect to such supplies is to be collected by the electronic commerce operator. Where, net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under section 9(5) of the CGSTAct,2017, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 49)
Yes, there is no such restrictions under the GST. However, it would be treated as any other form of supply of goods and/or services and chargeable to tax accordingly. Since the goods and/or services are supplied on his own behalf, provisions of collection of tax source do not apply to such transaction.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST ,PENALTY AND OTHER AMOUNTS: FAQ NO. 48)
As per Section 2(44) of the CGST Act, 2017, electronic commerce means supply of goods and/or services including digital products over digital or electronic network. As 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.
(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTY AND OTHER AMOUNTS: FAQ NO. 47)
An intra-State supply or inter-State supply must be determined based on the location of actual supplier and place of supply. Tax payment under these provisions merely require the ecommerce operator to deposit tax, but the nature of supply will still be determined based on the actual supplier.
(ICAI FAQ PUBLICATION 06-09-2017 REVERSE CHARGE: FAQ NO.50)
No, in respect of supplies directly by such a supplier, GST registration, tax payment and all other compliances are applicable. However, for purposes of threshold benefit, supplies through ecommerce operator would not be included.
(ICAI FAQ PUBLICATION 06-09-2017 REVERSE CHARGE: FAQ NO. 49)
Due to the remote nature of the business undertaken, greater vigil is being exercise by the Government.
(ICAI FAQ PUBLICATION 06-09-2017 REVERSE CHARGE: FAQ NO. 48)
Since tax is payable by the ecommerce operator under section 9(5), the supplier no longer has any tax liability and insisting on registration will be of no effect.
(ICAI FAQ PUBLICATION 06-09-2017 REVERSE CHARGE: FAQ NO. 47)