GST (Goods and Services Tax) is a common nationwide tax regime that subsumes other different taxes like VAT, Excise duty etc. Being a new tax system, there is much confusion how it will impact various businesses.
For calculating this tax, there is special accounting software for GST. This has a different impact on different types of companies. Impact on tax paying by e-commerce companies is much debated. Here a few aspects about GST for e-commerce companies:
Definition Of E-Commerce As Per Gst
E-commerce as per GST is defined thus: electronic commerce implies the receipt or supply of goods/ services or transmission of data or funds, through one electronic network, mainly the internet via making use of an application which depends on the net. This includes but is not restricted to instant messaging, e-mail, web services, shopping carts, FTP (File Transfer Protocol) and EDI (Electronic Data Interchange). The payment may or may not be conducted via the net and final delivery of goods or/ and services may or may not be done by the operator.
Who Is An E-Commerce Operator?
An e-commerce operator is a person who indirectly or directly manages, operates and owns an electronic stage that is involved in helping to supply services and/ or goods. In addition, a person giving any services or information connected to supply of services and/ or goods through any electronic platforms may be counted like an operator. However, a person who supplies services/goods as per his sole account will not count like an operator.
Must An E-Commerce Operator Get Registered?
As per GST law, e-commerce operators cannot avail of threshold limit and they are liable to register, whatever be the quantum of supply provided by them.
What Is An Aggregator?
It implies a person managing and owning an electronic platform. He must use this as a communication and application device, helps a prospective customer for connecting with a service provider using trade name or brand of the aggregator.
As per GTS law, aggregators also cannot avail of threshold exemption and they are liable to register whatever be the amount of their supply.
What Is Meant By TCS?
As per GST law, an operator of e-commerce must deduct (collect) an amount from the consideration payable/ paid to actual suppliers of services and goods, completed through such an operator. The quantum collected/ deducted is referred to as TCS (Tax Collection at Source).
Timing Of Deductions By Operator Of E-Commerce
The timing of such deductions/collections is the earlier of two events:
- The time of any quantum of credit towards the account derived from the authentic supplier of services and/ or goods.
- The time in which any amount of cash is paid or by another way to such a supplier
Timing Of Submitting TCS To Govt. Account
The amount which has been amassed by the e-commerce operator must be submitted towards the credit for the suitable govt. in the space of ten days following the month end in wherein amount was collected. It is required that the operator must do filing of the statement by electronic means that contains information about complete amounts garnered by him towards outward supplies have done via his portal, in the space of 10 days pertaining to conclusion of the month in which pertains the statement.
The statement will include the name of every supplier, details of concerned supplies provided by them as well as quantum amassed in their name. The manner and form of this statement may be stipulated under GST rules.
These are some aspects about GST to be paid by e-commerce companies. GST software services help in the process.