E- COMMERCE -UNDER REVISED MODEL GST LAW. Presented by: VINEET BHATIA Advocate

Transcription

1 E- COMMERCE -UNDER REVISED MODEL GST LAW N-144,Greater Kailash-I, New Delhi Ph: , , Presented by: VINEET BHATIA Advocate

2 E- COMMERCE 2 WHAT IS E- COMMERCE MODELS UNDER CURRENT TAXATION UNDER GST REGIME ISSUES VINEET BHATIA ADVOCATE

3 What is E-commerce? Sec 2(41) - electronic commerce means supply of goods and/or services including digital products over digital or electronic network 3

4 Who is E-commerce Operator Sec 2(42) - electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce 4

5 MODELS

6 MODELS INVENTORY ONLINE INFORATION AGGREGRATOR C2C MARKET PLACE

7 MODELS INVENTORY SITE OWNER + SUPPLIER CUSTOMER

8 MODELS Inventory Model 8

9 MODELS AGGREGATOR X Y Z AGGREGRATOR CUSTOMER V EXAMPLE OLA, UBER ETC

10 MODELS MARKET PLACE

11 MODELS Managed Market Place (MMP) 11

12 MODELS CUSTOMER TO CUSTOMER CUSTOMER SITE OWNER CUSTOMER EXAMPLE OLX, QUICKER ETC

13 MODELS ONLINE INFORMATION SITE OWNER CUSTOMER EXAMPLE SHADI.COM ETC

14 CURRENT TAXATION

15 UNDER VAT /CST STAND TAKEN BY E COMMERCE OPERETORS Not liable to tax as no Sale is undertaken by them They merely provide an electronic platform to supplier/vendors for display of products STAND TAKEN BY VAT DEPARTMENTS Transaction between vendor/ suppliers and e commerce operator is an independent transaction and transaction between e commerce operator and customer is a distinct transaction of sale 15

16 UNDER VAT /CST Kerala VAT Dept. VAT on goods hosted on web-portals Demand quashed by Kerala HC [Filpkart Internet (P) Ltd. v/s State of Kerala W P 5348 & 6916 of 2015 dt ] Karnataka VAT Dept. VAT on goods sold from godowns of e- trailers. 16

17 Under Service tax Rendition of service from one to other person for consideration taxable -unless covered by Negative list u/s 66D Mega Exemption Notification no. 25/2012 dt Service tax is also applicable on Access of online information Database access & retrieval services Development & supply of digital content and software. E-commerce transaction on aggregator model w.e.f Cases of Dual taxation VAT/CST & service tax 17

18 UNDER GST REGIME

19 E-COMMERCE AS PER GST REGIME 19 Definition Levy Composition Levy Place of supply of services Collection of tax at source VINEET BHATIA ADVOCATE

20 LEVY OF TAX

21 [Section 8(4)] Levy of Tax The Central or a State Government may, on the recommendation of the Council, by notification, specify categories of services the tax on which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the person liable for paying the tax in relation to the supply of such services. Provided if operator does not have physical presence in taxable territory -Any person representing the Operator is liable to pay GST Provided further where operator does not have a representative in such a territory operator shall appoint a taxable person in the taxable territory for the purposes of paying tax 21

22 COMPOSITION LEVY

23 Composition Levy 23 As per section 9,No composition option shall be granted to a taxable person in the following specific cases - who is engaged in the supply of services; or who makes any supply of goods which are not leviable to tax under this Act;or who makes any inter-state outward supplies of goods; or who makes any supply of goods through an electronic commerce operator who is required to collect tax at source under section 56; or who is a manufacturer of such goods as may be notified on the recommendation of the Council: VINEET BHATIA ADVOCATE

24 Composition Levy 24 As per section 9, No composition option in the following specific cases: Services supplied: Any/ all services Goods supplied: Non-taxable goods Inter-State outward supplies Through e-commerce operators Notified goods manufactured by the supplier If aggregate turnover (all India basis) of preceding FY exceeds 50 Lakhs (If during the FY, the aggregate turnover exceeds 50 Lakhs, no composition from the following day.) VINEET BHATIA ADVOCATE

25 PLACE OF SUPPLY OF GOODS AND SERVICES

26 Place of Supply Services Provided by E-comm Operator to supplier Place of Supply of Service Gen Rule will apply Always location of Service receiver since compulsory registration. Services Provided by E-comm Operator to supplier of transportation of goods Place of Supply of Service Sec 9(9) of IGST Act location of Service receiver(if registered) or location at which such goods are handed over for their transportation 26

27 Place of Supply Supply of goods/provision of Service by supplier to customer For Goods: Place of Supply - Where movement of goods terminates for delivery. For Services: - to registered person(b2b) : Registered address of recipient - to unregistered person(b2c): Address on record of person 27

28 REGISTRATION

29 Registration SCHEDULE 5 READ WITH SECTION 23 Following categories of persons shall be required to be registered under this Act irrespective of the threshold limit : persons who supply goods and/or services, other than supplies specified under sub-section (4) of section 8, through such electronic commerce operator who is required to collect tax at source under section 56, irrespective of the threshold specified in paragraph 1; every electronic commerce operator, irrespective of the threshold specified in paragraph 1; every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person; 29

30 CHAPTER XIV ELECTRONIC COMMERCE SECTION 56:COLLECTION OF TAX AT SOURCE

31 Sec. 56:Collection of TCS 31 Compliances for e-commerce operators TCS to be paid to credit of appropriate government; To furnish a statement of such outward supplies of goods and / or services, electronically Both payment and statement to be made/ filed within 10 days from the end of the month in which the collection is made Statement to contain details of amounts collected, supplierwise in respect of all supplies effected through the website / url of the e-commerce operator during the calendar month:

32 Sec. 56:Collection of TCS 32 Tax credit for the concerned supplier Amount remitted by e-commerce operator treated as tax paid by the supplier Supplier eligible to claim credit of the same in the electronic cash ledger.

33 Sec. 56: Collection of TCS 33 Verification of the statement filed by the e- commerce operator details of the supplies furnished by the e-commerce operator to be compared with corresponding outward supplies; Discrepancies, if any, to be communicated to both Discrepancy, if not rectified by supplier, to be added to output liability of supplier for the month succeeding the one in which the same was communicated. VINEET BHATIA ADVOCATE

34 Sec. 56: Collection of TCS 34 Additional powers to the tax office Any officer not below Joint Commissioner may call for details like supplies of goods and / or services, stock of goods etc. from supplier through notice Details to be furnished within 15 working days from the date of notice. For non-compliance, penalty of upto Rs. 25,000 VINEET BHATIA ADVOCATE

35 N-144, Greater Kailash-I, New Delhi Ph: , , Presented by: VINEET BHATIA Advocate