'Important! However Certain Exemption to Service Provider from Registration Category of Persons Persons who supply goods and/or services, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52 Exemption Granted Supplier providing services through an ecommerce operator if the aggregate turnover does not exceed ` 20 Lakhs (Notification No. 65/2017–Central Tax, dated 15.11.2017 amended vide Notification No. 6/2019-Central Tax, dated 29-Jan-2019, w.e.f. 1-Feb-2019 These are also known as food aggregators , since its an online platform where in food vendors are listed and delivery services are provided by E-Commerce operators. Question : Whether GST Registration is Mandatory if a food business operator wants to list his business on Zomato or Swiggy? Answer: Yes , as per Section 24 of CGST Act 2017 , where a person is supplying goods or services through E-Commcerce platform he is liable to get registered without the exemption of threshold of 1. 20 Lakhs in Case of Supply of Services. 2. 40 Lakhs in case of Supply of Goods. These are also known as food aggregators , since its an online platform where in food vendors are listed and delivery services are provided by E-Commerce operators. (A) Modus Operandi : A unique login-id is created on these platforms of the food business operator where in they are asked for a valid Proof of business and FSSAI License before registration which is another area of practice for chartered accountants. (B) Accounting Perspective : Statement of Affairs are generated on the e-commerce platform , which is a detailed statement comprising of S.no. ,Order ID Order date Res. name ,Res. ID ,Mode of payment ,Order status ,Gross revenue (INR) ,Customer discount amount (INR) ,Commissionable amount ,(INR) ,Commission % ,Commission value (INR) ,Convenience fee (INR) , Taxes on Zomato fees(INR) ,Tax collected at source (INR), Amount Net receivable (INR) Settlement status Settlement date Bank UTR etc On the basis of above accounting is to be performed and receivables and payables are to be managed. Section 52 of CGST Act 2017 lays down the legal provision and rules there under for the execution of TCS Compliance under GST. 1. Who is liable to collect TCS under GST? Certain operators who own, operate and manage e-commerce platforms ( Zomato , Swiggy ) are liable to collect TCS. TCS applies only if the operators collect the consideration from the customers on behalf of vendors or suppliers. In other words, when the e-commerce operators pay the consideration collected to the vendors they have to deduct an amount as TCS and pay the net amount. 2.On what amount and what rate the Ecommerce operator will deduct TCS? Rate : 1% of Value of Supply ( 0.5% CGST , 0.5% SGST ) in case of Intra State Supply ( Most Cases ) , 1% IGST in case of Inter State Supply. Amount : The said amount will be calculated on the net value of the goods/ services supplied through the portal of the operator. ( Net of Sales Return)'
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