E-commerce has completely transformed the way of doing business in India. Market share of e-commerce is getting increased day by day due to ease to customer and increased customer base for seller as well. In selling through online channel there are two parties first who facilitates the online platform is called the e-commerce operator and the second party is seller of taxable supplies.
Now a person who is entering in online business, the first question that arises in his mind is, “Is it necessary to take GST registration at initial stage of business.”
The answer is Yes. In a traditional business a person need not to take GST registration for sale of goods until he crosses the threshold limit i.e Rs. 40 (or INR 10 lakhs in case of specified special category States) in a financial year.
But as per Section 24(ix) of the CGST Act, 2017, every person supplying goods through an e-commerce operator shall be mandatorily required to register irrespective of the value of supply made by him.
However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year.
The second question is “I do not have any supplies in initial days is it still required to file GST return”
The answer is Yes. Once you get registered under GST you need to comply with GST regulations and need to file the prescribed return (GSTR-1 and GSTR-3B) on monthly/quarterly basis.
TCS Collection by E-Commerce Operator:-
The e-commerce operator is required to collect an amount at the rate of one percent (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it, where the consideration with respect 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).
TCS is collected by the e-commerce operator in the month in which consideration is collected from the online seller. E-commerce operator need to file return of the same before 10th of the following month in GSTR-8.
The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the 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).
Return of goods:-
There are many events of sales return while selling through online portal. An e-commerce company will 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.
How to determine net value of taxable supplies:-
Total value of supplies of goods, services or both
Less:- Value of supplies returned
Less:- Value of supplies on which tax paid by operator in RCM
Less:- Value of exempt supplies
Matching and Mismatching of sales under E-commerce:-
Details of supplies furnished by Every E-commerce Operator in his statement for the month will be matched with corresponding details of outward supply furnished by concerned supplier in his return. Both the details should ideally match. Where there is mismatch in details of outward supplies declared by E-commerce operator with the corresponding details by the supplier discrepancy will be communicated to both persons.
When discrepancy is communicated to supplier or E-commerce operator and the same is not rectified by either Supplier or E-commerce operator same will be added to the output tax liability of the said supplier in his return for the month succeeding the month in which discrepancy is communicated.
Supplier in whose liability amount has been added, shall be liable to pay tax along with the interest on the amount added from the date such tax was due till the date of its payment.
How to avail TCS credit by the supplier of taxable supplies:-
Supplier has to file acceptance on GST Portal for the amount of TCS deposited by the e commerce operator with the appropriate Government and after this the accepted TCS amount will be credited to the electronic cash ledger of the registered supplier (on whose account such collection has been made). The said credit can be used at the time of discharge of tax liability by the actual supplier.
Due date for filing ‘TDS and TCS credit received:-
There is no due date to file TDS and TCS credit received but it can be filed once in month.
POST COMMENTS