Revolutionizing E-Commerce Tax Compliance: New Guidelines Unveiled
Special Procedure Unveiled:
The Central Government, under section 148 of the CGST Act, 2017, introduces a special procedure for electronic commerce operators collecting tax at source.
Focus on Exempted Persons:
Targets electronic commerce operators dealing with suppliers exempted from registration, as per notification 34/2023-Central Tax.
Enrolment Number Requirement:
Mandates that electronic commerce operators permit goods supply only if the said person possesses an allotted enrolment number on the common portal.
Restrictions on Inter-State Supply:
Imposes a restriction on inter-State supply of goods through electronic commerce operators for exempted persons.
Tax Collection Exemption:
Exempts electronic commerce operators from collecting tax at source for goods supplied by exempted persons, lightening the compliance burden.
Details Submission in FORM GSTR-8:
Requires electronic commerce operators to electronically submit details of goods supplied by exempted persons through them in FORM GSTR-8.
Effective Implementation Date:
The notification comes into effect from October 1, 2023, marking a significant shift in e-commerce tax compliance.
These measures aim to streamline processes, encourage compliance, and create a balanced tax environment in the rapidly evolving e-commerce landscape.