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GST - E-Commerce

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E Commerce and GST in India
E Commerce and GST in India
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GST - E-Commerce

  1. 1. SETH & ASSOCIATES Chartered Accountants New Delhi | Lucknow www.sethspro.com GST E-Commerce
  2. 2. KEY DEFINITIONS E-Commerce & E-Commerce operator (44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network; (45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;
  3. 3. E-Commerce Models Someone else's goods Marketplace Self Goods Normal Trader Self Goods Normal Trader Someone else's goods Marketplace Someone else’s Services Aggregator NOTE For the purposes of GST all the above models would be termed as an “E-Commerce” operator since as per the definition any supply made over digital or electronic network (related to other’s or own goods / services) would be termed as an e-commerce and the person who owns, operates or manages the platform is called “E-commerce operator”
  4. 4. TAX LIABILITY TYPE TRANSACTION Tax Liability E-Commerce Self Goods E-Commerce Others Goods Others Aggregator 1 Other’s Services E-Commerce NOTE - 1. Notified sectors vide Notification 17/2017-Central Tax (Rate) dated 28th June, 2017 a.) Taxi b.) Hotels 2. Government of India is yet to notify Sec 52 of the respective acts to enforce the provisions of collection of TCS in case goods are sold through e-commerce operators. Till the same is not notified there is no onus on the E-Commerce operator to collect such TCS and deposit with the Government. Whenever enforced it is expected to be at 1%.
  5. 5. E-COMMERCE SEGMENT Foreseeable Challenges - Marketplaces TCS Whenever the provisions of Sec 52 are notified the implications of TCS would have deep impacts. The cash flow of the sellers would be curtailed by 2% DATABASE Maintenance of correct database of users and suppliers is going to be the key ahead. This would be the determining factor between Inter state or Intra State levy. Wrong levy would curtail cash flows. VALUATION Valuation of the various components charged by the E-Commerce operator would play an integral part of discharging correct tax. Such as freight and packing are levied extra RECONCILIATION Every Electronic commerce operator is required under the Act to ensure the sales on their portal reported match with the sales as reported by the vendors listed.
  6. 6. COMPLIANCES GSTR 1 (Outward Supply) By 10th of next month GSTR 2 (Inward Supply) By 15th of next month after reconciling GSTR 1 GSTR 3 (Monthly Return) By 20th of next month along with payment of tax GSTR 8 (Monthly Return) if E-Commerce marketplace By 10th of next month along with payment of tax Monthly Returns
  7. 7. THANK YOU Seth & Associates Chartered Accountants New Delhi | Lucknow Dhruv Seth (dhruv@sethspro.com) This document is solely for the circulation to the clients of Seth & Associates and should not be construed as an solicitation of any kind. Any forward to anyone who is not our client is not intended by us and we shall not be liable for the same. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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