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E-Commerce Operators are website/apps like Flipkart and Amazon
Vendors sell their Goods to Customers through these websites.
There can be two cases:-
Case 1
Reverse charge in GST is notified on transaction
In this case, the E-commerce company pay GST
Example 1:-
Example of Goods in E- Commerce
Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000
This was sold by Dealer Vishal Trading Company
Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company
In this case, Seller is Vishal Trading Company and Buyer is Dinesh
Neither of them pays GST
It is paid by E-Commerce Company Flipkart
Case 2
Reverse charge in GST is not applicable (Not notified on transaction)
In this case, the vendor pay GST
E-commerce company deducts TCS on the transaction
Example
Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000
This was sold by Dealer Vishal Trading Company
Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company
Suppose there is no reverse charge and TCS Rate is 1%
Flipkart has to pay 1800 to Vishal Trading Company
it will charge 1% TCS on this 1800 i.e Rs 18
Hence actual amount paid to Vishal Trading company=1800 - 18 = Rs1782
Summary
Those transactions which are not covered in Reverse Charge in GST will be covered here
| COVERED IN REVERSE CHARGE | NOT COVERED IN |
|
FLIPKART pays GST in this case on Sales Amount |
Flipkart Does not pay GST in this Case on Sales Amount |
|
No TCS is applicable in this case |
TCS at 1% is to be deducted from Vendor |
|
Vendor does not pay GST |
Vendor pays GST and Deducts TCS Amount |
