1. TAX COLLECTED AT SOURCE
GOODS & SERVICES TAX
TAX COLLECTED AT SOURCE

2. TAX COLLECTED AT SOURCE
Section 52 of the CGST Act
Relevant Rules/Notification yet to be issued.
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3. 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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4. 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 /- or the amount of TCS involved whichever is higher.
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5. 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)
Aggregate Value of Taxable Supplies returned in a month
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6. 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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7. 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 /-
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8. Concerns
The explanation in Sec 52(1) for “net value of taxable supplies” doesn’t 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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