Electronic Commerce Operator is required to collect tax in GST.
As per section 52(1) of CGST Act, 2017, electronic commerce operator shall collect an amount of tax in respect of taxable supplies of goods or services or both made through it. This section will came into force from 1st October 2018 by notification issued by Central Government.
Registration
As per section 24 of CGST Act, 2017, there is no threshold limit to register every e- commerce operator as well as the supplier who supplies through e- commerce operator has to get itself compulsory registered under GST irrespective of its turnover.
The registration under GST is taken by using the existing Tax Deduction and Collection Account Number (TAN) issued under the Income Tax Act.
Any person required to collect tax at source, shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07 for the grant of registration through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Returns
Monthly Returns: E-commerce operator collecting tax is required to file a TDS return in form GSTR-8 within 10 days from the end of the month.
Annual Returns: E-commerce operator who collects tax, shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both, including the supplies of goods or services or both returned, and the amount collected during the financial year, before 31st December following the end of such financial year in FORM GSTR -9B
TCS Credit
Once the return is filed by E-commerce operator, the amount of TCS collected will be reflected in the electronic ledger of supplier
The supplier can claim credit of the tax collected and reflected in the return by the operator in the supplier’s electronic cash ledger.
Rate of TCS and period for depositing with government
TCS is required to be deducted at the rate of 2% (1% CGST + 1% SGST) of the net value of taxable supplies.
Tax collected shall be deposited with the government within 10 days of succeeding month.
Matching
The details of supplies furnished by e- commerce operator in Form GSTR-8 shall be matched with the supplier GSTR-1.
If the details are not matched, the same shall be communicated to both of them
If the discrepancy is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward supplies furnished by the supplier and such supplier shall pay the tax payable in respect of such supply along with interest as specified under Section 50(1).
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