Registration for TCS under GST

Registration for TCS under GST
Registration for TCS under GST
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Registration for TCS under GST

Registration for an e-commerce operator under GST

⇒ As per section 24(x) of the CGST Act where in certain cases GST registration is mandatory irrespective of the turnover will be applicable to an e-commerce operator.

⇒ Registration for TCS is not the same as registration for GST. So, an e-commerce operator will have to mandatorily obtain registration for TCS irrespective of the fact that it is already registered under GST and has a GSTIN.

⇒ Registration for TCS is mandatory because as per section 52, an e-commerce operator(not being an agent), is supposed to collect the tax @1% of the net value of taxable supplies made through the e-commerce platform of the operator and where the consideration for such supplies is collected by the operator.

⇒ E-commerce operators will have to register for TCS in such States/Union Territory where the suppliers listed on their e-commerce platform are located. 

⇒ For e.g. E-commerce operator’s principal place of business i.e. head office is in Mumbai, then it is required to register for Maharashtra State. But if it has suppliers listed on the e-commerce platform who are located in Gujarat & Rajasthan, then TCS registration for both the states is also required irrespective of the fact that the e-commerce operator doesn’t have any physical presence there. (To facilitate TCS registration e-commerce operator may declare head office as the place of the principal place of business where it does not have the physical presence).

⇒ In the case of foreign e-commerce operator who does not have a place of business in India but has suppliers & customers in India. If the registered suppliers from India are selling taxable supplies through the foreign e-commerce operator/platform to customers in India. Then the provision u/s 52 of collecting tax @ 1% will be applicable for the e-commerce operator irrespective of the fact that it is a foreign e-commerce operator. And such registration will be required for each state/union territory where a supplier is located. An agent may be appointed on this behalf as foreign e-commerce operator does not have a physical presence in India.

Note: Government has notified one administrative jurisdiction and proper officer for each State/UT for the purpose of registration of e-commerce operators(including foreign e-commerce operators). This is done for the ease of e-commerce operators who have to obtain registration in the states/union territory where they do not have the physical presence but have the business. (Updated from FAQs on TCS published on 30.11.18)

Registrations for suppliers of an e-commerce operator under GST

Supplier of goods through an e-commerce operator irrespective of exemption based on turnover as per section 24(ix) of the CGST Act. 

Supplier of services covered u/s 9(5) through an e-commerce operator irrespective of exemption based on turnover as per section 24(ix) of the CGST Act.

Note: Services covered u/s 9(5) are the services where the entire tax is payable by an e-commerce operator under the reverse charge mechanism.

Supplier of services other than services covered u/s 9(5) through an e-commerce operator (can avail the exemption based on turnover) from obtaining compulsory registration as per section 24(ix) of the CGST Act. Such suppliers are not liable for registration under the provisions of GST, so the e-commerce operators should not collect TCS on the supply of services being made by using their platform. [Government had notified the same vide CGST Notification No. 65/2017 dated 15th November 2017.]

How e-commerce operators will obtain GST registration?

E-commerce operator who is required to collect TCS will have to mandatorily obtain GST registration.

Step -1 Fill up details in the application for registration FORM GST REG -07. (Form can be obtained directly from the common portal or Facilitation Centre notified by the Commissioner).

Step -2 Submit the above-filled form duly signed or verified through EVC electronically on the common portal.

Step -3  After verifying the details in FORM GST REG-07, Proper Officer will issue a Certificate of Registration in FORM GST REG-06. (Process generally takes 3 working days from the date of submission of the application if all the details are complete and correct).

How and when can an e-commerce operator cancel the GST registration?

If the requirement to collect TCS no longer exists and the e-commerce operator has cleared of all dues to be paid to Government and filed all the required returns. Then it is possible to apply for cancellation.

If the proper officer after making proper inquiries and ascertaining that the operator is no longer liable to collect TCS, then the officer can cancel the registration. Officer will follow the same cancellation procedure required in case of normal taxpayers and communicate electronically in FORM GST REG-08 about the cancellation.

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About CA Ankita Khetan 165 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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