GST Certificate of tax collection in case of e-commerce operators : Issues and Suggestion

Suggestions on GST Acts (July 2017) by Institute of Chartered Accountants of India

37. Certificate of tax collection in case of e-commerce operators

Section 52 of the CGST Act provides that every electronic commerce operator, not being an agent, shall collect an amount calculated at the rate of one percent of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator.

Issue

 The provision regarding issuance of certificate for payment of taxes collected at source appears to be missing. Accordingly, it would be difficult for the supplier to claim credit of tax collected by the electronic commerce operators.

 The requirement to establish the absence of agency is cumbersome. As long as the supply (a) is not by the Electronic Commerce Operator on his own account and (b) payment is passed through the Electronic Commerce Operator, then TCS is applicable

Suggestions

 It is therefore suggested that the enabling provisions regarding issuance of tax collection certificate be incorporated and suitable forms to be notified by way of rules.

 Further, it is suggested that the words “not being agent” be deleted.

 Further, e-commerce operators covered by section 9(4) not be required to comply with the provisions of this section.

Read ICAI Suggestions on GST Act to Govt : July 2017

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