TCS Provisions under Section 52 of the CGST Act 2017 comes into force with effect from 1.10.2018 in India
The Goods and Services Tax Act, 2017 came into force in
India with effect from 1.7.2018.
The TCS i.e. Tax Collected at Source provisions were deferred
till 30.9.2018 by various Notifications
The TCS Provisions under Section 52 of the CGST Act, 2017
comes into force with effect from 1.10.2018 as per the latest Notification No.
51/2018 dated 13.9.2018.
The CGST Act Section 52 is given below
for ready reference.
52. (1) Notwithstanding anything to
the contrary contained in this Act, every electronic commerce operator
(hereafter in this section referred to as the “operator”), not being an agent,
shall collect an amount calculated at such rate not exceeding one per cent., as
may be notified by the Government on the recommendations of the Council, of the
net value of taxable supplies made through it by other suppliers 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 or both, other than
services notified under sub-section (5) of section 9, made during any month by
all registered 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.
(3) The amount collected under
sub-section (1) shall be paid to the Government by the operator within ten days
after the end of the month in which such collection is made, in such manner as
may be prescribed.
(4) 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 or both effected
through it, including the supplies of goods or services or both 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.
(5) Every operator who collects the
amount specified in sub-section (1) shall furnish an annual statement,
electronically, containing the details of outward supplies of goods or services
or both effected through it, including the supplies of goods or services or both
returned through it, and the amount collected under the said sub-section during
the financial year, in such form and manner as may be prescribed, before the
thirty first day of December following the end of such financial year.
(6) If any operator after furnishing
a statement under sub-section (4) discovers any omission or incorrect
particulars therein, other than as a result of scrutiny, audit, inspection or
enforcement activity by the tax authorities, he shall rectify such omission or
incorrect particulars in the statement to be furnished for the month during
which such omission or incorrect particulars are noticed, subject to payment of
interest, as specified in sub-section (1) of section 50:
Provided that no such rectification
of any omission or incorrect particulars shall be allowed after the due date
for furnishing of statement for the month of September following the end of the
financial year or the actual date of furnishing of the relevant annual
statement, whichever is earlier.
(7) The supplier who has supplied
the goods or services or both 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 such manner as may be
prescribed.
(8) The details of supplies
furnished by every operator under sub-section (4) shall be matched with the
corresponding details of outward supplies furnished by the concerned supplier
registered under this Act in such manner and within such time as may be
prescribed.
(9) Where the details of outward
supplies furnished by the operator under sub-section (4) do not match with the
corresponding details furnished by the supplier under section 37, the
discrepancy shall be communicated to both persons in such manner and within
such time as may be prescribed.
(10) The amount in respect of which
any discrepancy is communicated under sub-section (9) 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 his return for the month succeeding the month in which the
discrepancy is communicated in such manner as may be prescribed.
(11) The concerned supplier, in
whose output tax liability any amount has been added under sub-section (10),
shall pay the tax payable in respect of such supply along with interest, at the
rate specified under sub-section (1) of section 50 on the amount so added from
the date such tax was due till the date of its payment.
(12) Any authority not below the
rank of Deputy Commissioner may serve a notice, either before or during the
course of any proceedings under this Act, requiring the operator to furnish
such details relating to—
(a) supplies of goods or services
or both 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 operator and declared as additional places of
business by such suppliers, as may be specified in the notice.
(13) Every operator on whom a notice
has been served under sub-section (12) shall furnish the required information
within fifteen working days of the date of service of such notice.
(14) Any person who fails to
furnish the information required by the notice served under sub-section (12)
shall, without prejudice to any action that may be taken under section 122, 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 or services or both making supplies through the operator
The above Section comes into force
with effect from 1.10.2018 as per the Notification given below:
[To be published in the Gazette of India,
Extraordinary, Part II, Section 3,
Subsection
(i)]
Government of India
Ministry of Finance
(Department of Revenue)
Central
Board of Indirect Taxes
and
Customs
Notification No. 51/2018 – Central
Tax
New Delhi,
the 13th September, 2018
G.S.R. …..(E).— In exercise of the powers conferred by sub-section (3) of section 1 of the
Central Goods and Services Tax Act, 2017 (12 of
2017) (hereinafter referred to as the
said Act), the Central Government hereby appoints the 1st day of October, 2018, as the date on which
the provisions of section
52 of the said Act
shall come into force.
[F. No.
349/58/2017-GST(Pt.)]
(Gunjan Kumar Verma) Under
Secretary to the Government of India