TMI BlogElectronic Commerce and Tax Collected at SourceX X X X Extracts X X X X X X X X Extracts X X X X ..... supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). Q 4. What is the rate of TCS notified by Government? Ans. Rate of TCS is 0.5% under each Act (i.e. the CGST Act, 2017 and the respective SGST Act / UTGST Act respectively) and the same is 1% under the IGST Act, 2017 . Notifications No. 52/2018 Central Tax and 02/2018-Integrated Tax both dated 20th September, 2018 have been issued in this regard. Similar notifications have been issued by the respective State Governments also. Q 5. Is it mandatory for e-commerce operator to obtain registration? Ans. Yes. As per section 24(x) of the CGST Act, 2017 , every electronic commerce operator has to obtain compulsory registration irrespective of the value of supply made by him. The benefit of threshold exemption is not available to e-commerce operators. Q 6. Whether a supplier of goods or services supplying through e-commerce operator would be entitled to threshold exemption? Ans. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness in India since they operate from outside. But their supplier and customers are located in India. So, in this scenario will the TCS provision be applicable to such e-commerce operator and if yes, how will foreign e-commerce operator obtain registration? Ans. Where registered supplier is supplying goods or services through a foreign e-commerce operator to a customer in India, such foreign e-commerce operator would be liable to collect TCS on such supply and would be required to obtain registration in each State / UT. It may be noted that each State/UT has indicated one administrative jurisdiction where all e-commerce operators having business (but not having physical presence) in that State/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State/UT. If the foreign e-commerce operator does not have physical presence in a particular State / UT, he may appoint an agent on his behalf. Q 10. Is it necessary for e-Commerce operators who are already registered under GST and have GSTIN, to have separate registration for TCS as well? Ans. E-Commerce operator has to obtain separate registration for TCS irrespective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to be collected on import of goods or services or both? Ans. TCS is not liable to be collected on any supplies on which the recipient is required to pay tax on reverse charge basis. As far as import of goods is concerned since same would fall within the domain of Customs Act, 1962 , it would be outside the purview of TCS. Thus, TCS is not liable to be collected on import of goods or services. Q 19. Is there any exemption on Gold, owing to the fact that rate of GST is only 3% and TCS on it would erode the margin for the seller? Ans. No such exemption from TCS has been granted. Q 20. Whether payment of TCS through Input Tax Credit of operator for depositing TCS as per Section 52 (3) of the CGST Act, 2017 is allowed? Ans. No, payment of TCS is not allowed through Input Tax Credit of e-Commerce operator. Q 21. It is very common that customers of e-commerce companies return goods. How these sales returns are going to be adjusted? Ans. An e-commerce company is required to collect tax only on the net value of taxable supplies made through it. In other words, value of the supplies which are returned (supply return) may be adjusted from the aggregate valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 54(1) of the CGST Act, 2017 . Q 26. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Ans. 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 10 days after the end of such month in FORM GSTR-8 . The 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 in FORM GSTR-9B .. Q 27. Whether interest would be applicable on noncollection of TCS? Ans. As per section 52(6) of the CGST Act, 2017 , interest is applicable on omission as well in case of incorrect particulars noticed. In such a case, interest is applicable since it is a case of omission. Further penalty under section 122(vi) of the CGST Act, 2017 would also be leviable. Q 28. What will be the place of supply for e-commerce operator for recharge of talk time of the Telecom Operator / rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le, and will need to be paid by your vendor, on which credit is available for you. The second transaction is a supply on your own account, and not by other suppliers and there is no requirement to collect tax at source. The transaction will attract GST at the prevailing rates. Q 33. The sellers supplying goods through e-commerce operators (ECO) may have common places of business, especially if their goods are stored in a shared facility operated by the ECO. This will result in the same additional place of business being registered by multiple suppliers. Is this allowed? Ans. Yes, this is allowed. Any registered person can declare a premises as a place of business if he has requisite documents for use of the premises as his place of business (like ownership document, agreement with the owner etc.) and there is no restriction about use of a premises by multiple persons. The registered person shall have to comply with the requirements of maintaining records as per section 35 of the CGST Act, 2017 and Rules 56 to 58 of the CGST Rules, 2017 . Q 34. I am a supplier, supplying my own products through a website hosted by me. Do I fall under the definition of an electroni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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