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.

Consideration Structure in Aggregator Business

♦ 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
2  

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:

Place of Supply will under different scenario & type of GST

1. Buyer, Seller & E-commerce in same state:

  • Place of Supply will be that State & CGST & SGST to be charged

2. Buyer, Seller & E-Commerce in different states:

  • Service from E-commerce to Supplier of Service Place of supply will be place of supplier if registered or address of supplier available with E-Commerce otherwise place of E-commerce & IGST to be charged.
  • Service from Supplier to Consumer through E-comm. Place of supply will be place of consumer if registered or address of consumer available with supplier otherwise place of Service Provider & IGST to be charged.

Woman is using tablet pc, pressing on virtual screen and selecting e-commerce

3. E-Commerce & Buyer in same state & supplier in other state:

  • E-Commerce to Supplier of service – Place of supply will be place of supplier if registered or address of supplier available with E- Commerce otherwise place of E-commerce. IGST to be charged if supplier registered or address available otherwise CGST & SGST to be charged.
  • Supplier to Consumer – Place of supply will be place of consumer if registered or address of consumer available with supplier otherwise place of supply of Service IGST to be charged if supplier registered or address available otherwise CGST & SGST to be charged.

4. E-Commerce& Supplier in same state & Buyer in other state:

  • E-Commerce to Supplier of servicePlace of supply will be place of supplier if registered or address of supplier available with E- Commerce otherwise place of E- commerce. CGST & SGST to be charged.
  • Supplier to ConsumerPlace of supply will be place of consumer if registered or address of consumer available with supplier otherwise place of supply of Service Provider. IGST to be charged if supplier registered or address available otherwise CGST & SGST to be charged.

5. Buyer& Supplier in same state & E-Commerce in other state-

  • E-Commerce to Supplier of service Same as per point 3
  • Supplier to Consumer Same as per point 1

6. Buyer& Supplier in different state & E-Commerce in other state-

  • E-Commerce to Supplier of service Same as per point 3
  • Supplier to Consumer Same as per point 3

TCS under GST by E-Commerce Operator:

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.

TDS under Income Tax Law by E-Commerce Operator:

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.

*****

The content is merely for sharing knowledge. Author can be reached at [email protected] or 9819244185.

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.

Author Bio

Qualification: CA in Practice
Company: Co-founder of Budding Business & Makwana Sweta & Associates
Location: Mumbai, Maharashtra, India
Member Since: 20 Aug 2017 | Total Posts: 66
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. View Full Profile

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One Comment

  1. Rajender Kalia says:

    Dear Madam Thanks for valuable information. Pl let me know answer of one question that one person selling Ice Cream through Swiggy and received TCS statement on monthly basis. How much Sales to be booked and Sales to be shown to Swiggy or B2C normal Customer in GST return in GSTR1 Thanks in advance.

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