GST : Electronic Commerce in GST in Hindi
Electronic Commerce in GST
Meaning: - Electronic Commerce means Supply of Goods or Services or both, including digital products over “Digital” or “Electronic Network”. [Section 2(44)]
Electronic Commerce operator:-Means any person who owns, operates or manages Digital or Electronic Facility or “Platform for electronic commerce”. [Section 2(45)]
Various Models of E-Commerce Business: -
1. Business to Consumer (B2C): - Examples are, Flipkart, Amazon, Snap deal, Paytm, Shop clues, Uber, Ola etc.
2. Business to Business (B2B): - Examples are Indiamart.com, Tradeindia.com, Sulekha.com, Truckers.com, etc.
3. Consumers to Consumers (C2C): -Here Consumers interact with each other. These cover sale of second hand Goods. Examples are eBay, Olx etc
Registration under GST:- No composition is allowed to ECO and supplier on E Commerce even if ECO as registration, TCS registration is still required
1. For E-Commerce Operator [Section 24(x) of CGST Act 2017]:-
Every E-Commerce operator (who is required to collect tax at source under section 52), irrespective of his Turnover is mandatorily required to obtain GSTIN registration. This registration is in addition to and separate from GST registration obtained as normal Supplier.
If electronic commerce operator has supplies in different states, he is required to obtain registration in each State. However, he can indicate his Head Office as place of business, if he does not have place of business in that state. Thus, all returns can be filed through Head Office. Electronic commerce Operator cannot opt for Composition scheme.
2. For Supplier: -
Registration of supplier who is supplying goods or services through E-Commerce operator is mandatory (Irrespective of his annual Turnover, except in case of Supply of services- as perNotification no. 65/2017-CT dated 15.11.2017)
The Supplier cannot supply Goods & Services under Composition scheme.
1. Not applicable to persons supplying their own products on own websites
2. Whether TCS to be collected on exempt supplies?- NO
Tax Collection & Payment: -
• Tax collected at source will be applicable for E-Commerce Operator.
• Every E-commerce Operator shall collect an amount calculated at rate not exceeding 1% of Net Value of Taxable Supplies.(SALES-RETURNS)
• The Rate as above will be bifurcated as: -
For Inter-State Supply: - 1% IGST
For Intra-State Supply: - 0.5% CGST&0.5% SGST
• The Payment Tax collected at Source can only be made from Electronic Cash Ledger. It cannot be done using Electronic Credit Ledger.
• Supplier of Goods or Services shall claim credit in his Electronic Cash Ledger, of the amount collected and reflected in the statement of the Operator.
• TCS available to suppliers for use as ITC or refund
• TCS collected to be paid within 10 days from the end of month in which it is collected
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