The Central Board of Indirect Taxes and Customs (CBIC) has notified a special procedure for electronic commerce operators who are required to collect tax at source under section 52 of the CGST Act, in relation to the supply of goods made by taxpayers paying tax under section 10 of the CGST Act. This procedure is effective from October 1, 2023.
Procedure for E-Commerce Operators (ECO)
The CBIC has outlined the following procedure for electronic commerce operators in this regard:
1. Inter-State Supply Restriction:
E-commerce operators are prohibited from allowing inter-State supply of goods by taxpayers paying tax under section 10 through their platform.
2. Tax Collection at Source:
E-commerce operators are required to collect tax at source under sub-section (1) of section 52 of the CGST Act for the supply of goods made by taxpayers paying tax under section 10 through their platform.
The collected tax must be paid to the Government as per the provisions of sub-section (3) of section 52 of the CGST Act.
3. Furnishing of Details:
E-commerce operators must electronically furnish the details of supplies of goods made by taxpayers paying tax under section 10 through their platform in the statement in FORM GSTR-8 on the common portal.
Effective Date
The notification, CBIC Central Tax Notification 36/2023, was issued on August 4, 2023. This notification will come into force from October 1, 2023.
CBIC Central Tax Notification 36/2023 dated 04/08/2023: Special Procedure for E-Commerce Operators regarding Composition Suppliers