Article explains Place of Supply and Type of GST charged under GST under different scenarios, which includes includes Buyer, Seller & E-commerce in same state, Buyer,Seller & E-Commerce in different states, E-Commerce& Buyer in same state & supplier in other state, E-Commerce & Supplier in same state & Buyer in other state, Buyer& Supplier in same state & E-Commerce in other state, Buyer& Supplier in different state & E-Commerce in other state. Article further explains provisions related to TCS and TDS under GST by E-Commerce Operator.
♦ Place of Supply and Type of GST charged under GST under different scenario
1. Place of Supply of Services:
In Case of Supply of service made through E-Commerce operator following two Transaction take place:
1. Service by E-Commerce operator to Supplier of service throughE-Commerce.
2. Supplier of service provide service to final consumer through E-Commerce
In such case Place of supply will be as follow:
|S. No||Service Provide||Registered / Unregistered under GST||Place of Supply|
|1||E-Commerce to Supplier of Service through E-Commerce||Registered||Place of such Registered Recipient|
|Unregistered||If address available then place of such recipient otherwise place of E- Commerce operator|
Supplier of Service to Consumer through E- Commerce
|Registered||Place of such Registered Recipient|
|Unregistered||If address available then place of suchrecipient otherwise place of E- Commerce operator|
As discussed above place of Supply will be as follow in different scenario & type of GST:
1. Buyer, Seller & E-commerce in same state:
2. Buyer, Seller & E-Commerce in different states:
3. E-Commerce & Buyer in same state & supplier in other state:
4. E-Commerce& Supplier in same state & Buyer in other state:
5. Buyer& Supplier in same state & E-Commerce in other state-
6. Buyer& Supplier in different state & E-Commerce in other state-
1. E-Commerce operator require to collect TCS under GST from Net Value of Taxable Supply made through it by the other supplier & E- Commerce operator collect the consideration on behalf of the
2. TCS rate is 1% when Inter-State Supply & 5% of CGST & 0.5% of SGST in case of Intra-State supply.
3. E-Commerce operator need to an obtain State-wise registration for TCS purpose in which it has obligation to collect
4. TCS should be CGST & SGST or IGST is based on GST charged by i.e. if supplier charged CGST & SGST on its supply TCS will be CGST & SGST or supplier charged IGST then TCS will be IGST.
1. E-Commerce operator shall deduct TDS also under section 194O under Income Tax Act, 1961 from the payment made to supplier (Individual or HUF) at the Rate 1% in case of supplies exceed Rs. 50,00,000/- with effect from 01st October, 2020.
Please refer all the relevant sections, rules, amendments and consider all the necessary requirements as applicable. The author is not responsible for any losses caused or incurred.
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A Practicing Chartered Accountant with over 4 years of rich experience in Company Law, Audits, Accounts & taxation. She is a writer at her own blog https://insights.buddingbusiness.com/. She is keen in streamlining business accounts of the Company and provide Startup consultancy.