PROVISIONS OF CGST ACT, 2017 APPLICABLE TO E-COMMERCE OPERATOR AT A GLANCE

E-commerce Operator : E-commerce operator who is liable to collect only TCS, then registration is mandatory ; otherwise threshold limit is applicable. Eg : Titan selling own watches in his own website. He is qualified as a E-Commerce operator as per amended provisions. If he is not liable to collect TCS then registration u/s 24(x) not mandatory.

Supply of goods through E-commerce operator : Person who is supply taxable goods through E-commerce operator has to obtain mandatory registration u/s 24. Eg : Parker supplier selling pens through flipkart. Parker pens supplier has to obtain mandatory registration irrespective of value of supply.

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Supply of services through E-commerce operator : If person supplying services other than specified in section 9(5) through E-commerce operator, then no mandatory registration ; provided turnover is less than threshold limit.

TCS Provisions u/s 52 : If consideration is collected by E-commerce operator from supplier of goods or services then E-commerce operator has to collect TCS @ 1% (0.5% CGST + 0.5% SGST) on net value of taxable supplies supplied through E-commerce operator. Net value of taxable supplies shall be calculated at GSTIN level. Eg : Let say A and B supplying goods through E-commerce operator then net value of taxable supplies shall be calculated for A and B separately.

Return provisions : The amount collected by the E-commerce operator is to be paid to appropriate government within 10 days after the end of the month in which the said amount was so collected. Deductee can claim TCS which is credited in his electronic cash ledger.

Penalty provisions : As per section 52(6) of the CGST Act, 2017, interest is applicable on omission as well as 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.

Any person who fails to furnish the information required by the notice served : Under sub-section (12), he shall (without prejudice to any action that may be taken under section 122) be liable to a penalty which may extend to twenty-five thousand rupees.

AUTHOR : KRISHNA REDDY (CLICK HERE TO VIEW PROFILE)