Tuesday 10 January 2017

ELECTRONIC COMMERCE (Section-56 Collection of tax at source under Model GST Law)

             ELECTRONIC COMMERCE

                     Section-56.                             Collection of tax at source under Model GST Law


(1) Notwithstanding anything to the contrary contained in the Act, every electronic
commerce operator (hereinafter referred to in this section as the “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.

Explanation.- For the purposes of this sub-section, the expression "net value of
taxable supplies" shall mean the aggregate value of taxable supplies of goods or
services, other than services notified under sub-section (4) of section 8, made
during any month by all registered taxable persons through the operator reduced
by the aggregate value of taxable supplies returned to the suppliers during the
said month.

(2) The power to collect the amount specified in sub-section (1) shall be without
prejudice to any other mode of recovery from the operator.
The amount collected under sub-section (1) shall be paid to the account of the
appropriate Government by the operator within ten days after the end of the
month in which such collection is made in the manner as may be prescribed.

(3) Every operator who collects the amount specified in sub-section (1) shall furnish
a statement, electronically, containing the details of outward supplies of goods or
services effected through it, including the supplies of goods or services returned
through it, and the amount collected under sub-section (1) during a month, in
such form and manner as may be prescribed, within ten days after the end of
such month.

(4) The supplier who has supplied the goods or services through the operator shall
claim credit, in his electronic cash ledger, of the amount collected and reflected in
the statement of the operator furnished under sub-section (4), in the manner
prescribed.

(5) The details of supplies furnished by every operator under sub-section (4), shall,
in the manner and within the period prescribed, be matched with the
corresponding details of outward supplies furnished by the concerned supplier
registered under the Act.

(6) Where the details of outward supplies furnished by the operator under subsection(4)
 do not match with the corresponding details furnished by the supplier
under section 32, the discrepancy shall be communicated to both persons in the
manner and within the time as may be prescribed.

(7) The amount in respect of which any discrepancy is communicated under subsection (7) 
and which is not rectified by the supplier in his valid return or the
operator in his statement for the month in which discrepancy is communicated,
shall be added to the output tax liability of the said supplier, where the value of
outward supplies furnished by the operator is more than the value of outward
supplies furnished by the supplier, in the manner as may be prescribed, in his
return for the month succeeding the month in which the discrepancy is
communicated.

(8) The concerned supplier shall, in whose output tax liability any amount has been
added under sub-section (8), be liable to pay the tax payable in respect of such
supply along with interest, at the rate specified under sub-section (1) of section
45 on the amount so added from the date such tax was due till the date of its
payment.

(9) Any authority not below the rank of Joint Commissioner may serve a notice,
either before or during the course of any proceeding under this Act, requiring the
operator to furnish such details relating to—

(a) supplies of goods or services effected through such operator during any
period, or

(b) stock of goods held by the suppliers making supplies through such
operator in the godowns or warehouses, by whatever name called,
managed by such operators and declared as additional places of business
by such suppliers -

as may be specified in the notice.

(10) Every operator on whom a notice has been served under sub-section (10)
shall furnish the required information within fifteen working days of the date of
service of such notice.

(11) Any person who fails to furnish the information required by the notice
served under sub-section (10) shall, without prejudice to any action that is or
may be taken under section 85 , be liable to a penalty which may extend to
twenty-five thousand rupees.

Explanation.— For the purposes of this section, the expression ‘concerned supplier’
shall mean the supplier of goods and/or services making supplies through the
operator.

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