E-Commerce under GST

Today I will discuss E-commerce in very simplified manner-

Meaning of Electronic commerce-means the supply of goods or services or both including digital products over digital or electronic network.

Electronic commerce operator means- any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

♠ Now there can be any of situations-

1. Supply of goods/services on its own account- E-commerce operator supplies goods/services himself but not act as facilitator between supplier and recipient.

2. E-commerce carries on as faciltator between supplier and the recipient.

3. Deemed Supplier of services u/s 9(5)- E-commerce operator is not actual supplier of services but all provisions of act shall apply as if he is supplier of services and liable for paying tax in relation to supply of services. Reference-Notification no 17/2017dated 28.06.2017

4. Other E-commerce operator liable for TCS U/S 52-TCS will be collected by e-commerce operators while making payment to vendor.

• Important points- Where e-commerce operator does not have a physical presence in the taxable territory, any person reprenting such e-commerce operator shall be liable to pay tax.
• Registration requirement- The e-commerce operator liable to collect TCS have to compulsorily register under GST u/s 24 CGST ACT as there is no threshold exemption for it but remember get GST registration UNDER TCS.
• Deemed Supplier of services u/s 9(5) has to take normal registration.
• Every person who supplies who supplies goods/services through e-commerce operater registration requirement as follows-
  • In case of services- Exemption limit Rs 20 lacs
  • In case of goods –No exemption
• Registration requirement of E-commerce operator in case Principal place of business is different and place of supply is different (rule 12) – A person applying for registration to deduct or tax collect tax in accordamce with provisions of section 52 in a State or UT where he does not have physical presence shall mention
• The name of other state in Part A
• The name of the state in Part –B in which principal place of business is located.

Example:

A –Supplier of goods located in Delhi

B- Recipient of goods located in Delhi

E-commerce operator located in Gurgaon

Part A- Name of State need to be mentioned- Delhi

Part B- Name of State need to be mentioned -Haryana

• Section 52- Collection at Source- Every electronic commerce operator shall collect an amount not exceeding one percentof net value of taxable supplies made through it by other suppliers.
• For intra state supply – 0.5 % under CGST /0.5% under SGST
• For Inter state supply- 1% under IGST ACT
• Gst Return- GSTR-8 needs to be submitted -10^th of Next month.
• How to claim TCS collected – Transfer TCS collected into cash ledger by filling TDS/TCS credit received under Services/Returns TAB /TDS-TCS credit recvd at GST PORTAL.
• How to REPORT sales through E-commerce operator in GSTR-1
  • Report as B TO B transaction if sales is made to Registered recipient
  • Report as BTO C transaction if sales made to Unregistered recipient .

Any doubts related to above mailed at mamta0581@gmail.com