A recent set of GST FAQs released by The Central Board of Indirect Taxes and Customs (CBIC) have helped businesses understand tax collected at source (TCS) applicability and the norms surrounding it.
CBIC clarified that the e-Commerce operator must obtain a separate registration for TCS in every State/Union territory it operates from, whether it is already registered under GST or not and has a GSTIN.
Where there is no place of business in that State, the head office will be declared as the place of business. If foreign e-commerce operators make any supplies in India, then, they must register for those States/Union territory in which supply is affected most. However, if there is no place of business, they may appoint an agent on his behalf and take the compulsory registration.
However, relief is provided from registration to e-commerce sellers who supply only services of a value below Rs. 20 lakhs in the financial year(Rs. 10 lakhs for some hill & all northeastern States).
Now, the e-commerce operators who provide a platform to these service providers are not required to collect tax at source (TCS) on their supplies.
CBIC stated that each State/UT has indicated one administrative jurisdiction, in cases where no place of business is present for e-commerce operators, but they operate in those States. “The GST officers for the purpose of registration of e-commerce operators have also been notified by each State/UT,” stated CBIC.
As far as reporting of TCS collected is concerned, separate clarification was given by CBIC for e-commerce operators.
Those ECOs who were unable to obtain registration in the month of October 2018 but have already collected TCS for the said month, may furnish the details of TCS collected in the month of October 2018, in the first GTSR-8 return to be filed after obtaining registration. This was needed in the wake of persistent troubles faced by ECOs in collecting and depositing TCS with the Government exchequer.
E-commerce operators collecting consideration on behalf of a seller for supplies on such platforms, have to comply Tax collected at source (TCS) provisions starting this October 2018.
GST was set up with the aim to curb tax evasion and at the same time provide relief in the form of reduction of compliance points.