The Government has introduced new Tables 14 and 15 for reporting in GSTR-1 from January’24 onwards. These tables are to be filled only by suppliers supplying through E-commerce operators and also by the E-commerce operators (ECO) paying tax under section 9(5) of the CGST Act in their GSTR-1.
Q. What was the purpose introducing the new tables 14 & 15 in GSTR-1?
A. A new table 3.1.1 was added in GSTR-3B from 1st August 2022, where E-Commerce operators and E-commerce sellers could report supplies made under Section 9(5) of CGST Act. The insertion of new tables 14 and 15 in GSTR-1 will ensure auto-population of Table 3.1.1 in GSTR3B and greater co-relation of data shown by the sellers supplying through ECO and the ECOs in their GST returns. This will further streamline the process of reporting E-commerce outward supplies and the tax payable on the same.
Q. For whom is this new reporting in Table 14 and Table 15 applicable?
A. As described earlier, the reporting in Tables 14 & 15 of GSTR-1 is applicable for E-commerce operators (ECO) and the suppliers supplying through E-commerce operators.
Q. Who are E-Commerce operators?
A. An E-Commerce operator refers to any person who owns, operates, or manages a digital or electronic facility or platform that facilitates the supply of goods or services between suppliers and customers.
The supply of goods or services or both, including digital products over digital or electronic network is called E-commerce.
Therefore, any person who owns, operates and manages a digital or electronic platform for E-commerce is an E-commerce operator (ECO).
Q. Who is liable to pay tax in case of E-Commerce supplies?
A. Normally, the person supplying the goods or services through an ECO is liable to pay tax on its supplies. However, there are certain services supplied through E-commerce operators on which only the ECO is liable to pay tax u/s 9(5) of the CGST Act’2017.
For goods and services supplied through ECO other than those mentioned u/s 9(5) of the CGST Act,2017 the Tax on such supplies is to be paid by the supplier of such goods or services. The ECO pays the tax on the commission it charges on such supplies of goods or services through its digital platform.
Also, as per section 52 of the CGST Act’2017, E-Commerce Operators are required to collect Tax Collected at Source (TCS) at a prescribed rate on the consideration received by sellers from customers. This TCS will be deducted by the ECO from the payments made by them to the seller and the same will be deposited to the Government by the ECO.
Another point to be noted here is that on supplies u/s 9(5) of the CGST Act’2017 on which ECO is himself required to pay the tax there will be no collection of TCS from the seller on these transactions as the seller is not liable to pay GST on the supply of these services notified u/s 9(5).
Q. What are the services which are covered u/s 9 (5) of the CGST Act’ 2017 on which tax is to be paid by the ECO?
A. As per Notification No. 17/2017- Central Tax (Rate), 23/2017- Central Tax (Rate) and 17/2021- Central Tax (Rate), The following services have been notified under section 9(5) of the CGST Act’2017.
(i) services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle, omnibus or any other motor vehicle;
(ii) services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
(iii) services by way of house-keeping, such as plumbing, carpentering etc, except where the person supplying such service through electronic commerce operator is liable for registration under sub-section (1) of section 22 of the said Central Goods and Services Tax Act.
(iv) supply of restaurant service other than the services supplied by restaurant, eating joints etc. located at specified premises.
Therefore, in case of the above-mentioned services the Tax has to be paid by the ECO and not by the sellers supplying services through these ECO.
The services supplied through Uber, OLA, Swiggy, Zomato etc. will be covered u/s 9(5) and these online platforms will need to pay tax on the services provided through their portals.
Another important point to be noted here is that in case of services by way of providing accommodation in hotels, inns, guest houses, clubs etc., the tax on services provided through ECO is to be paid by the ECO only in case the hotels etc. supplying services through these portals are not registered under GST and are not liable for registration under GST. Therefore, the ECO needs to pay tax on services of providing accommodation in hotels, inns, guest houses etc. only in case of unregistered supplier supplying these services through its platform.
If the suppliers providing services of accommodation in hotels, inns, guest houses, clubs etc. through ECO are registered in GST, then the tax will continue to be paid by these suppliers/sellers and not the ECO.
Same is the case with housekeeping service where ECO will be liable to pay tax u/s 9(5) on the housekeeping services supplied through its digital platform only when the person supplying the services through its portal is unregistered.
Q. What is TCS to be collected by ECOs on supplies made though their portals?
A. As per section 52 of the CGST Act’2017, ECOs are required to collect TCS on the net value of taxable supplies made by suppliers through their platform. This net value on which TCS is to be collected does not include the value of services on which tax is to be paid u/s 9(5) of the CGST Act’2017. Also, since the value on which TCS is to be collected on the net value therefore the same is net of returns.
Therefore, the ECO collects such tax from the suppliers supplying through their portal and pay it to the Govt.
The rate of TCS to be collected by the ECO is 1% and this TCS is not on the transactions on which the ECO himself has to pay the tax u/s 9(5).
Q. What are the key differences between TCS u/s 52 and tax paid u/s 9(5)?
A.
| Section 52 | Section 9(5) | |
| Liability for payment of tax | TCS to be collected and deposited by the e-commerce operator on the net value of taxable supplies made by other suppliers through the ECO. | Liability to pay tax falls on the e-commerce operator and is treated as it is the supplier of the services. |
| Registration | Compulsory registration for both the e-commerce operator as well as the actual supplier | Voluntary registration can be availed by the actual supplier. Compulsory registration for the E-Commerce operator. |
| Threshold Exemption | Not applicable. |
Applicable only in the case of the actual supplier. |
|
Compliance |
Form GSTR-8 has to be filed every month showing TCS collected as well as details regarding the supplies. TCS credit will be available to the supplier. | Form GSTR-3B needs to be filed in this case and the details to be shown in the newly introduced columns in GSTR-1. |
| Reverse Charge Mechanism | Not Applicable |
Applicable |
Q. What is the reporting applicable in new Tables 14 & 15 of GSTR-1?
A. The ECO and the sellers supplying goods and services through ECO need to report the details of supplies made through ECO in Table 14 and 15 of GSTR-1.
The reporting in Table number 14 is to be done by the suppliers supplying goods or services through E-commerce operators and the reporting in Table 15 is to be done by the ECO themselves.
Q. What is to be reported in new Table 14 of the GSTR-1?
A. There is a two-part reporting under Table 14 to be provided by the supplier of goods or service supplying through ECO:
- In part 14 (A), the supplier needs to declare The ECO-GSTIN wise summary of the supplies made through ECO on which ECO is liable to collect tax at source (TCS) and liability on which has already been reported in any table 4 to 10 of GSTR-1. No taxable value or tax liabilities will be auto populated from this table to GSTR-3B. Amendments to be reported in 14A(a).
Therefore, in part 14(A), the those supplies on which tax is collected by ECO are shown. Here the liability to pay tax falls on the supplier itself therefore the same is also to be shown in Tables 4 to 10 of the GSTR-1. The values provided in tables 4 to 10 should match with the Net value of supplies and Tax shown in Tables 14(A). The values will be auto-populated in 3B from tables 4 to 10 and not from Table 14.
- Under part 14 (B), the suppliers need to declare the summary details of the supplies made through ECO on which ECO is liable to pay tax u/s 9(5). Tax on such supplies shall be paid by the ECO and not by the supplier. This is to be reported net of credit / debit note (if any), hence the net value of supplies is to be declared. Such values will be auto-populated to Table 3.1.1(ii) of GSTR-3B. The GSTIN of the ECO will also be shown under this part. Amendments to be reported in 14A(b).
Q. What is to be reported in new Table 15 of the GSTR-1?
A. The details to be reported in Table 15 by the ECO are:
- ECO shall report the supplies on which they are liable to pay tax u/s 9(5) in Table 15. Such supplies shall not be reported anywhere else in GSTR-1/IFF. The supplies to be reported under Table 15 are under the following headings:
- Registered Supplier and Registered Recipient (B2B)– In this section the details of such supplies where both the supplier and receiver of supplies are registered persons, is to be reported by ECOs at invoice level. This will be available in IFF also. Debit Note / credit note (if any) to be reported in Table 9B.
- Registered Supplier and Unregistered Recipient (B2C)– In this section the supplier level details along with POS and rate wise detail of the supplies related to the transaction where the supply is being made from a registered supplier to unregistered recipient need to be reported by the e-commerce operator. This will not be available in IFF. This is to be reported net of credit / debit note (if any).
- Unregistered Supplier and Registered Recipient (URP2B)– In this section the document level details of the supplies made from unregistered supplier to registered recipient through ECO needs to be reported by the e-commerce operator. The detail to furnish will include the document detail and GSTIN of the recipient. This will be available in IFF also. Debit Note / credit note (if any) to be reported in Table 9B.
- Unregistered Supplier and Unregistered Recipient (URP2C)– In this section the POS and rate wise detail of the supplies to be reported by e-commerce operators related to the transaction of such supplies from an unregistered supplier to unregistered recipient through ECO. This will not be available in IFF. This is to be reported net of credit/debit note (if any).
- The values shall be auto-populated in Table 3.1.1(i) of corresponding GSTR-3B and such liabilities are to be paid by the ECOs in GSTR-3B in cash. Amendments to be reported in Table 15A(I) & 15A(II).
Q. What are some of the examples of the reporting to be done in Tables 14 & 15 of the GSTR-1?
A. Some examples of the reporting under Tables 14 & 15 of the GSTR-1 are:
- If an online seller sells its products through online platforms such as Amazon or Flipkart or others then how will it be shown in GSTR-1?
In most cases like this TCS will be collected by the ECO. The tax on such supply is to be paid by the suppliers supplying through ECO. Such supplies will be shown in any of the applicable Tables 4 to 10 of GSTR-1 of the suppliers and also in Table 14A of the GSTR-1. The ECO will file its TCS return under GST.
- There are also online platforms which purchase the goods from the sellers and sell it on their own. These do not act as agents and sell the products in their own name and also do not Collect TCS on the same. These supplies are shown as normal supplies by the suppliers and shown in any of the Tables 4 to 10 of GSTR-1.
- Now suppose a hotel provides accommodation through one of the online platforms such as OYO, MakeMyTrip, Goibibo etc. In this case if the hotel is registered or is a liable to be registered under GST, the tax on the supplies will be paid by the hotel itself and such hotel needs to report such supplies in its GSTR-1 under any of the applicable Tables 4 to 10 and also to be reported in table 14 (A) when TCS is collected by the ECO on such supplies.
In case the hotel providing accommodation through ECO is unregistered and is not liable to be registered under GST then the tax on the same has to be paid by the ECO u/s 9(5) and is to be reported under Table 15 of the GSTR-1 only.
The above example also applies to the housekeeping services provided through ECOs such as Urban Clap where the ECO pays the tax except where the seller is registered or liable to register under GST.
- In case of car owners supplying services through ECOs such as OLA or UBER, the tax on such supplies is to be paid by OLA and Uber u/s 9 (5). Such supplies are to be reported by OLA, Uber under Table 15 of GSTR-1 and by the suppliers (if they are registered) in Table 14 (B).
- Suppose an eating joint or a restaurant sells through Swiggy or Zomato. How will it be shown in GSTR-1?
In case a restaurant or eating joint (which is not situated in specified premises) sells and delivers through Zomato or Swiggy, the tax on such supplies will be paid by the ECOs like Zomato or Swiggy u/s 9(5). Such supplies will be shown by the restaurant in Table 14 (B) in GSTR-1. Also, the ECO will report such supplies in Table 15 of GSTR-1.
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(The author is a Chartered Accountant and can be contacted at info@youronlinefilings.in or capratikanand@gmail.com or Mobile: +91-9953199493)
Author Bio
Very well explained sir.
However, one issue practically faced is that even after updating table 14(b) by the supplier, the total turnover in GSTR-1 is not covering the values in Table 14(b). This will cause difference between GSTR-1 and GsSTR-3B.
Is this happening elsewhere?