Home » GST » Articles » E-commerce operators under GST

E-commerce operatorsFurnishing of statement of supplies by an e-commerce operator under GST

It is pertinent to note that if any person makes any taxable supplies through e-commerce platform than it mandatory to register irrespective of whether threshold limit for registration is triggered or not. E-commerce operators are responsible to collect tax from suppliers using their platforms to make taxable supplies. In case of notified services e-commerce operators are liable to pay tax as if they are the suppliers instead of the actual suppliers.

Statutory meaning of electronic commerce and electronic commerce operator

electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

From the above it is clear if any organisation owns any digital or electronic platform it will be classified as an e-commerce operator. it is also essential to note that

Furnishing of statement of supplies

As per section 52(4) of the CGST Act read with Returns Rules, every operator who collects the tax at source as per section 52(1) is required to furnish a statement in FORM GSTR-8 electronically through the Common Portal, either directly or from a Facilitation Centre notified by the Commissioner, containing details of supplies effected through such operator and the amount of tax collected, within ten days after the end of such month.

The details furnished by the operator shall be made available electronically to each of the suppliers in Part D of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-8.

It is essential to note that the liability to collect tax would arise only on third party supplies. It will not arise on supplies made on own account. And hence in such cases there is no need to file statement of supplies.

Matching of details furnished by the e-Commerce operator with the details furnished by the supplier

As per section 52(8) of the CGST Act, the details of supplies furnished by every operator shall be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under this Act.

The following details relating to the supplies made through an e-Commerce operator, as declared in FORM GSTR-8, shall be matched with the corresponding details declared by the supplier in FORM GSTR-1-

  1.  GSTIN of the supplier.
  2.  GSTIN or UIN of the recipient, if the recipient is a registered person.
  3.  State of place of supply.
  4.  Invoice number of the supplier.
  5.  Date of invoice of the supplier.
  6.  Taxable value.
  7.  Tax amount.

Where the supplier is not required to furnish the details separately for each supply, the following details relating to such supplies made through an e- Commerce operator, as declared in FORM GSTR-8, shall be matched with the corresponding details declared by the supplier in FORM GSTR-1-

  1.  GSTIN of the supplier.
  2.  State of place of supply.
  3.  Total taxable value of all supplies made in the State through e-commerce portal.
  4.  Tax amount on all supplies made in the State.

Where the time limit for furnishing FORM GSTR-1 under section 37 has been extended, the date of matching of the above mentioned details shall be extended accordingly.

Communication and rectification of discrepancy in details furnished by the ecommerce operator and the supplier

Any discrepancy in the details furnished by the operator and those declared by the supplier shall be made available to the supplier electronically in FORM GST MIS-5 and to the e-commerce portal electronically in FORM GST MIS–6 through the Common Portal on or before the last date of the month in which the matching has been carried out.

A supplier to whom any discrepancy is made available as aforesaid may make suitable rectifications in the statement of outward supplies to be furnished for the month in which the discrepancy is made available.

An operator to whom any discrepancy is made available as aforesaid may make suitable rectifications in the statement to be furnished for the month in which the discrepancy is made available.

Where the discrepancy is not rectified an amount to the extent of discrepancy shall be added to the output tax liability of the supplier in his return in FORM GSTR-3 for the month succeeding the month in which the details of discrepancy are made available and such addition to the output tax liability and interest payable thereon shall be made available to the supplier electronically on the Common Portal in FORM GST MIS –5.

The purpose of this article is to create awareness about the soon to be implemented Goods and Service Tax in India.

ca rishabhkumarThe author is a fellow member of the Institute of Chartered Accountants of India and also a qualified Company Secretary. The author has also done DISA(ICAI), certificate on IFRS (ICAI), Certificate on Forex and Treasury Management (ICAI), Certificate on Forensic Accounting and Fraud Prevention (ICAI). The author practices as a Chartered Accountant under the name and style of Rishabh Kumar Barmecha and Associates and is an expert in auditing, financial investigation, direct and indirect taxation. The author can be reached at rishabhkumarbarmecha@gmail.com or 91 9007909221 or Twitter @CARKBarmecha.

CA Rishabh Kumar Barmecha

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *

Name
Email
Website