As Per Sec. 2(45) of the CGST Act, 2017 E-commerce operator means any person who owns, operates or Manages digital or electronic facility or platform for electronic commerce. Any Person who is supplying Goods/Services on his account, however would not be considered as E-commerce operator.
Registration and Threshold Under E-Commerce Operator
Registration for E-commerce operator
Registration for suppliers supplying Goods or services through E-commerce operator
TCS (Tax Collection at source) under E-commerce Operator
Situations where TCS will be/will not be collected by E-commerce operator
If a Person Supplying own products through his own hosting website then as per Sec. 52 of CGST Act, 2017 TCS will not be collected because TCS is required to be collected by E-commerce operator when taxable supply is made through it by other supplier & consideration is collected by E-commerce operator. When someone is selling own product through own website there is no need to collect TCS. Here normal GST rate will be applicable.
If Someone is Purchasing goods from different vendors and are selling such goods on own website under through his own billing then TCS will not be collected because supply is not made by other supplier. Here 2 transactions are in picture- (a) Purchasing through another vendor (b) Selling through own website
In First situation GST will be charged by Vendor and Input will be available to the person receiving such supply.
In the second situation is supply through own and not through other suppliers so no need to collect TCS and Transaction will attract GST at normal rates.
a. When Seller supplies exempted or Zero-Rated Goods through E-commerce Operator then As Per Section 52(1) of CGST Act, 2017 TCS will not be collected because according to such provision TCS will be collected when taxable supply is made through E-commerce operator when supply is not taxable TCS will not be collected.
b. Travel agent providing services through E-commerce Operator will be liable to collect TCS under Section 52 of CGST Acct, 2017.
c. When if there is transaction in which 2 or more E-commerce Operator are involved then in such case each transaction will separately examined as per sec. 52 of the CGST Act, 2107 and TCS will be collected accordingly.
Collection/Remittance/ Input tax credit of TCS
Collection: E-commerce Operator should make collection during the month in which consideration amount is collected from the recipients.
Remittance: The amount collected by E-commerce Operator to be remitted to the Government within 10 days after the end of the month in which amount was so collected.
Input Tax Credit to the Supplier: TCS paid by operator to Government will reflect in GSTR-2 of actual supplier based on GSTR-8 filed by operator
Return and Matching concept in E-commerce Provision
Return: As Per Section 52(4) & Section 52(9) of the CGST Act, 2017, Every E-commerce Operator is required to furnish a statement electronically containing the details of outward supplies of goods or services made by it and includes supplies returned through it and amount collected by it as TCS during a month Within 10 days after the end of such month.
Statement will be filed in form GSTR-8 except this operator is also required to file an annual statement by 31st day of December following the end of the financial year in which the tax was collected.
Matching and Mismatching under E-commerce
Details of supply furnished by Every E-commerce Operator is his statement for the month will be matched with corresponding details of outward supply furnish by concerned supplier in his return. Where the details of outward supplies declared by E-commerce operator do not match with the corresponding details by the supplier discrepancy will shall be communicated to both persons. [Section 52(8) and Section 52(9) of the CGST Act, 2017]
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. [Section 52(10) and section 52(11) of the CGST Act, 2017]