TAX COLLECTED AT SOURCE

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 TAX COLLECTED AT SOURCE

Section 52 of the CGST Act

Relevant Rules/Notification yet to be issued.

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 E -Commerce Operator (U/s 52)
Definitions U/s 2 of CGST Act
Electronic commerce means the supply of goods
and/or services including digital products over
digital /electronic network.

Electronic commerce operator means any

person who owns/operates/manages digital or
electronic facility or platform for electronic
commerce.

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 Provisions U/s 52(1) of the CGST Act

Every Electronic Commerce Operator not an agent shall

Collect an amount at rate not exceeding 1%.
(As per Govt notifications on Council recommendations)
On net value of taxable supplies made through it.
Where consideration for supplies collected by the operator.

Non- compliance of the provisions may entail

penalty of Rs. 10000/- or the amount of TCS
involved whichever is higher.

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 Value of Taxable Supplies

Net Value of Taxable Supplies in a month --

Aggregate Value of Taxable supplies of Goods and/or Services in a month

Less
Services notified U/s(9)(5)
Less
Aggregate Value of Taxable Supplies returned in a month

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 Procedural Compliances

TCS to be deposited by the 10th of the month following the collection.

TCS deposited to be reflected in the electronic cash ledger of the supplier

and can be used for making any payment on account of GST.

Monthly return in GSTR-8 to be filed by 10th of subsequent month giving

details of outward supplies and goods returned in a month along-with details
of TCS collected.

Monthly return details for a financial year to be furnished in the annual return
in GSTR Form 9B filed for such financial year by 31st December.

Return furnished by the e-commerce operator to be matched with the return

of outward supplies of the supplier.

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 Power to requisition information

Proper officer empowered to require via a

notice to furnish prescribed information
including the supplies made and information
on stock of goods held.

Non compliance of information requisitioned

within specified period in notice served may
entail penalty which may extend to Rs.
25000/-

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 Concerns

The explanation in Sec 52(1) for net value of taxable

supplies doesnt clarify that the value of goods will be
inclusive of GST or not. If included this will lead to a
cascading effect.

E-Commerce Operator to face compliance burden. Will

affect small companies with compliance burden as both
operator and supplier will have to maintain records,
specially the operators who have to keep record for
thousands of suppliers.

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