Tax Collection at Source(TCS) by electronic commerce operator :
Notwithstanding anything to the contrary contained in the Act, every electronic commerce operator (hereinafter referred to in this section as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent, as may be notified by Government, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.
Explanation.—For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under section 9(5) of CGST Act, made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month – section 52(1) of CGST Act.
Supplier can take credit of TCS paid by e-commerce operator – The supplier who has supplied the goods or services or both through the electronic commerce operator shall claim credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished under section 52(4), in the manner as may be prescribed – section 52(7)of CGST Act.
Amount collected by e-commerce operator to be paid to Government – The amount collected by ecommerce operator under section 52(1)shall be paid to the credit of the Government by the operator within ten days after the end of the month in which such collection is made, in the manner prescribed – section 52(3) of CGST Act.
E-commerce Operator to submit statement to Government every month – Every operator shall, furnish a statement, electronically, of all amounts collected towards outward supplies of goods or services or both effected through it, including supplies of goods or services or both returned to it, and the amount collected under section 52(1) of CGST Act during a calendar month, within ten days after the end of such calendar month – section 52(4) of CGST Act.
The statement can be rectified by e-commerce operator. He is required to pay tax with interest in such case. However, such rectification is not possible after due date of furnishing statement for the month of September following the end of financial year or the actual date of furnishing relevant annual statement, whichever is earlier – section 52(6) of CGST Act.
Annual Statement by e-commerce operator – The e-commerce operator is required to file Annual Statement before 31st December of following financial year, giving specified details – section 52(5) of CGST Act.
Matching of statement of e-commerce operator and credit taken by supplier – The details of supplies and the amount collected furnished by e-commerce operator shall be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under CGST, in prescribed mannersection 52(8) of CGST Act.
Discrepancy between the details of operator and supplier – Where the details of outward supply, on which the tax has been collected, as declared by the operator do not match with the corresponding details declared by the supplier, the discrepancy shall be communicated to both persons in prescribe manner- section 52(9) of CGST Act.
If the discrepancy is not rectified, it shall be added to the output liability of the said supplier for the calendar month succeeding the calendar month in which the discrepancy is communicated.
The concerned supplier shall be liable to pay the tax payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment – section 52(10) of CGST Act.
The concerned supplier shall pay the tax payable with interest on the amount added to his turnover under section 52(10) – section 52(11) of CGST Act.
‘Concerned supplier’ shall mean the supplier of goods or services or both making supplies through the ecommerce operator – explanation to section 52 of CGST Act.