Section Section 52 of CGST Act:- Lays Provisions about Collection of Tax At Source i.e TCS, Applicable primarily for Electronic commerce Operators


Financial Year: 2017


Section 52

Collection of Tax At Source

 

 

To be read with

(a) Notification No 51/2018 Central Tax dated 13th Sep 2018

(b) Notification No 52/2018 Central Tax dated 20th Sep 2018

(c) Rule 67 of CGST Rules 2017

(d) Rule 78 of CGST Rules 2017

(e) Rule 79 of CGST Rules 2017

(f) Rule 80 of CGST Rules 2017

(g) Rule 85 of CGST Rules 2017

(h) Rule 87 of CGST Rules 2017

 

 

(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 (Please read Rule 85(4).

 

(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, (Please read Rule 67)

within ten days after the end of such month.

 

Explanation:-

For the Purpose of this sub section, it is hereby declared that the due date for furnishing the said statement for the months of Oct, Nov, Dec 2018 shall be 31st Jan 2019

Explanation has been inserted by CGST(Fourth Removal of Difficulties) order 2018 wef 31st Dec 2018

 

31st Jan 2019 has been amended as 01st Feb 2019 by CGST (Second Removal of difficulties) order 2019 wef 1st Feb 2019

 

(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, (Please read rule 80 of CGST Rules)

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. (Please read rule 87 of CGST Rules)

 

(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. (Please read rule 78 of CGST Rules)

 

(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 or Section 39 (Inserted by CGST Amendment Act 2018 wef 1st Feb 2019)

the discrepancy shall be communicated to

both persons

in such manner and within such time as may be prescribed. (Please read rule 79 of CGST Rules)

 

(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 Collection of tax at source

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(Please read Rule 67)

 

(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

 

Thanks

CA Rahul Gupta