Every electronic commerce operator, not being an agent, shall collect an amount calculated at such rate not exceeding one percent, as may be notified by the Government on the recommendations of the Council, 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 said electronic commerce operator.
Sec 52 TCS provisions came into force with effect from 1-10-2018.
The effective rate notified (0.5% CGST +.05% SGST)
Sec 2(44) “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network
Sec 2(45) “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.
Net value of taxable supplies” means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator sec 9(5), made during any month by a registered supplier through such operator reduced by the aggregate value of taxable supplies returned to such supplier during the said month.
Tax is to be collected at source once supply has been made through the e-commerce operator irrespective of the actual collection of consideration from the customer/ receiver or others.
Points to be noted on calculation/ valuation rules :
VALUATION OF SUPPLY
The value of supply shall exclude the taxes leviable under the GST namely CGST, SGST, UTGST, IGST and Cess.
Hence, the tax will be collectible only on the taxable value of the supply. No tax shall be collected on the above-mentioned taxes shown in any tax invoice.
No tax shall be collected on the value of exempted goods or services or both even if the exempt and taxable supplies are shown together in a tax invoice.
GST registration is mandatory and there is no threshold limit under section 24(x) of CGST Act. Only a registered person can collect tax.
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