GST on E-Commerce Transactions: By CA Sweta Makwana

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GST on E-Commerce Transactions: By CA Sweta Makwana

 

Author

CA. Sweta Makwana

www.caswetamakwana.com

 

 

 

 

  • Place of Supplyand Type of GST charged under GST under different scenario
1. Place of Supply of Services:

In Case of Supply of service made through E-Commerce operator following two Transaction take place:

  1. Service by E-Commerce operator to Supplier of service throughE-Commerce.
  2. Supplier of service provide service to final consumer through E-Commerce

 

In such case Place of supply will be as follow:
S.

No

  

Service Provide

 Registered / Unregistered under GST  

Place of Supply
 

1

  

E-Commerce to Supplier of Service through E-Commerce

 Registered Place of such Registered Recipient
Unregistered If address available then place of such recipient other wise place of E- Commerce operator
 

 

2

  

Supplier of Service to Consumer through

E-Commerce

 Registered Place of such Registered Recipient
 

Unregistered

 If address available then place of such recipient other wise place of E- Commerce operator

 

 

As discussed above place of Supply will be as follow in different scenario & type of GST:

  1. Buyer,Seller&E-commerce in same state:
  • Place of Supply will be that State & CGST & SGST to be charged
  1. Buyer,Seller&E-Commerce in different states:
  • Service from E-commerce to Supplier of Service–Place of supply will be place of supplier if registered or address of supplier available with E-Commerce other wise place of E-commerce & IGST to be charged.
  • Service from Supplier to Consumer through E-comm.–Place of supply will be place of consumer if registered or address of  consumer available with supplier other wise place of Service Provider& IGST to be charged.
  1. E-Commerce & Buyer in same state & supplier in other state:
  • E-Commerce to Supplier of service-Place of supply will be place of supplier if registered or address of supplier available with E- Commerce other wise place of E-commerce. IGST to be charged if supplier registered or address available other wise CGST & SGST to
  • Supplier to Consumer– Place of  supply will be place of consumer if registered or address of consumer available with supplier other wise place of supply of Service IGST to be charged if supplier registered or address available other wise CGST & SGST to be charged.
  1. E-Commerce&Supplier in same state & Buyer in other state:
  • E-Commerce to Supplier of service–

Place of supply will be place of supplier if registered or address of supplier available with E-Commerce other wise place of E-commerce. CGST & SGST to be charged.

 

  • Supplier to Consumer–

Place of supply will be place of consumer if registered or address of consumer available with supplier other wise place of supply of Service Provider. IGST to be charged if supplier registered or address available other wise CGST & SGST to be charged.

  1. Buyer & Supplier in same state & E-Commerce in other state-
  • E-Commerce to Supplier of service–
  • Supplier to Consumer – Same as per point 1
  1. Buyer&Supplier in different state & E-Commerce in other state-
  • E-Commerce to Supplier of service–
  • Supplier to Consumer – Same as per point 3

 

TCS under GST by E-Commerce Operator:
  1. E-Commerce operator require to collect TCS under GST from Net Value of Taxable Supply made throughit by the other supplier & E
  2. TCS rate is 1% when Inter-State Supply & 0.5% of CGST & 0.5% of SGST in case of Intra-State supply.
  3. E-Commerce operator need to an obtain State-wise registration for TCS purpose in which
  4. TCS should be CGST & SGST or IGST is based on GST charged by i.e. if supplier charged CGST & SGST on its supply TCS will be CGST & SGST or supplier charged IGST then TCS will be IGST.

 

TDS under IncomeTax Law:
  1. E-Commerce operator shall deduct TDS also under section194O under Income Tax Act, 1961 from the payment made to supplier (Individual or HUF ) at the Rate 1% in case of supplies exceed Rs.50,00,000/-with effect from 01st October,2020.

Please refer all the relevant sections, rules, amendments and consider all the necessary requirements as applicable. The author is not responsible for any losses caused or incurred.

The content is merely for sharing knowledge. Author can be reached at sweta@caswetamakwana.com  or 9819244185.

 

A Practicing Chartered Accountant with over 4 years of rich experience in Company Law, Audits, Accounts & taxation. She is a writer at her own blog https://insights.buddingbusiness.com/. She is keen in streamlining business accounts of the Company and provide Startup consultancy.

 

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