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TMI BlogGST — FAQ on E-Commerce dated 31-07-2017 dated 31-07-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 24(x) of the CGST Act, 2017 the benefit of threshold exemption is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them. Question 4 : Whether a person supplying goods or services through e-commerce operator would be entitled to threshold exemption? Answer : No. Section 24(ix) of the CGST Act, 2017 lays down that the threshold exemption is not available to such persons and they would be liable to be registered irrespective of the value of supply made by them. This requirement is, however, applicable only if the supply is made through such electronic commerce operator who is required to collect tax at source under Section 52 of the CGST Act, 2017. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). [Refer to Section 52(1) of the CGST Act, 2017]. Question 8 : It is very common that customers of e-commerce companies return goods. How these returns are going to be adjusted? Answer : An e-commerce company is required to collect tax only on the net value of taxable supplies. In other words, the value of supplies which are returned are adjusted in the aggregate value of taxable supplies. [Refer to Explanation to Sec. 52(1) of the CGST Act, 2017]. Question 9 : What is meant by net value of taxable supplies ? Answer : The net value of taxable supplies means the aggregate value of taxable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies made by the actual supplier. [Refer to Section 52(7) of the CGST Act, 2017]. Question 14 : Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Answer : Yes, every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment. [Refer to Section 52(10) and Section 52(11) of the CGST Act, 2017]. Question 17 : Are there any powers given to tax officials under the GST Act to seek information on supply/stock details from e-commerce operators? Answer : Yes. Any officer not below the rank of Deputy Commissioner may issue a notice to the electronic commerce operator to furnish such details within a period of 15 working days from the date of service of such notice. [Refer to Section 52(12), (13) and (14) of the CGST Act, 2017]. Question 18 : The sellers supplying goods through e-Commerce operators (ECO) may have common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution to the seller. In such cases, invoice is generated by the seller and received by the buyer without ECO getting to know about it. The payment flows through the ECO. In such cases, on what value is TCS to be collected? Can TCS be collected on the entire value of the transaction? Answer : Section 52(1) of the CGST Act, 2017 mandates that TCS is to be collected on the net taxable value of such supplies in respect of which the ECO collects the consideration. The amount collected should be duly reported in GSTR-8 and remitted to the Government. Any such amount collected will be available to the concerned supplier as credit in his electronic cash ledger. Question 22 : GST requires a dealer to maintain a consecutive serial num ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to Section 52 of the Act ibid, TCS is required to be collected on the net value of taxable supplies made through it by other suppliers where the consideration is to be collected by the ECO. In cases where someone is selling their own products through a website, there is no requirement to collect tax at source as per the provisions of this Section. These transactions will be liable to GST at the prevailing rates. Question 25 : We purchase goods from different vendors and are selling them on our website under our own billing. Is TCS required to be collected on such supplies? Answer : No. According to Section 52 of the CGST Act, 2017, TCS is required to be collected on the net value of taxable supplies made through it by o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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