Electronic Commerce under GST

Print Topic

 

1.         Tax collection at source

Every electronic commerce operator shall collect an amount out of the amount payable or paid to the supplier, representing consideration towards the supply of goods and /or services made through it calculated at prescribed rate, whichever is earlier:

  • At the time of credit of any amount to the account of the supplier of goods and/or services or
  • At the time of payment of any amount in cash or by any other mode

 

2.         Time Limit of payment

The amount collected shall be paid to the credit of the appropriate Government by the operator within ten days after the end of the month in which such collection is made, in the manner prescribed.

 

3.         Monthly TCS Returns in 10 days

Every operator shall furnish a statement of all amounts collected during a calendar month, in such form and manner as may be prescribed, within 10 days after the end of such calendar month. This statement shall contain the details of the amount collected on behalf of each supplier in respect of all supplies of goods and/or services affected through the operator and the details of such supplies during the said calendar month.

 

4.         Credit to Supplier

Any amount collected in accordance shall be deemed to be a payment of tax on behalf of the concerned supplier and the supplier shall claim credit of the tax collected and reflected in the statement of the operator filed.

In case any discrepancy is communicated and which is not rectified by the supplier in his valid return it shall be added to the output liability of the said supplier, in the manner as may be prescribed, for the calendar month succeeding the calendar month in which the discrepancy is communicated.

 

5. Comparison between previous scenario and current scenairo

5.1 Previous Scenario i.e., with Service Tax/Excise & VAT

As we all know Flipkart is the aggregator of Services, and his supplier is WS Retail. He acts as a communicator between WS Retail and customers. Customer pays the amount of goods/items purchased to Flipkart either through Cash on Delivery or electronically.

Cost of goods                                                                           Rs.  1000/-

VAT/Excise @ 20%                                                                Rs.     200/-

———————————————————————————

Total Price to be charged by customer                                Rs.  1200/-

———————————————————————————

Income of Flipkart

Commission Fee (assuming 10%)                                      Rs.       100/-

Shipping Fee                                                                           Rs.         30/-

Collection Fee (2.5%of the order value)                           Rs.         25/-

Fixed Fee (Fee charged by Flipkart)                                   Rs.         30/-

                                                                                              ——————

Total Marketplace Fee                                                         Rs.       185/-

                                                                                              ——————

 Service Tax (assumed 15%)                                               Rs.   27.75/-

                                                                                              ——————

Total amount to be retained by Flipkart                           Rs. 212.75/-

 

Net Amount to be paid to WS Retail                                 Rs. 987.25/-               

                                                                                              ——————

                                                                                              ——————

(1200-212.75)

Income of WS Retail

Amount received from Flipkart                                          Rs. 987.25/-               

Less VAT paid to Department                                            Rs.       200/-

Net amount retained by WS Retail                                    Rs. 787.25/-

5.2 Present Scenario i.e., with GST

Cost of goods                                                                         Rs.    1000/-

GST @ 20%                                                                            Rs.       200/-

———————————————————————————

Total Price to be charged by customer                              Rs.    1200/-

———————————————————————————

Income of Flipkart

Commission Fee (assuming 10%)                                      Rs.       100/-

Shipping Fee                                                                           Rs.         30/-

Collection Fee (2.5%of the order value)                           Rs.         25/-

Fixed Fee (Fee charged by Flipkart)                                   Rs.         30/-

                                                                                                  —————

Total Marketplace Fee                                                         Rs.       185/-

                                                                                                  —————

GST (assumed 20%)                                                             Rs.         37/-

                                                                                                  —————

Total amount to be retained by Flipkart                           Rs.       222/-

Net Amount to be paid to WS Retail                                 Rs.       978/-

                                                                                                  —————

                                                                                                  —————

(1200-222)

Income of WS Retail

Amount received from Flipkart                                          Rs.       978/-               

Less: VAT paid to Department                                           Rs.       200/-

Net amount retained by WS Retail                                    Rs.       778/-

 

Category: articles
Source/Author: RAJAT MOHAN




facebook share Twitter share Google share





Comments



Write Your Comment

Error message here!

Error message here!

Characters Left


Contact - us

Office Address:

18-A, SF, North Avenue Road
Punjabi Bagh West
New Delhi
Postcode: 110026
Email : rajat.mohan@icai.org

Enquiry Form:

Stay Up to Date With What's Happening

  • facebook
  • twitter
  • google plus
  • pinterest
Unsubscribe To Our Regular GST Updates:

Top