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Electronic Commerce and GST Model Laws

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1. INTRODUCTION

The dynamism of E-Commerce makes very difficult to provide any standard

definition for E Commerce, it

networks to facilitate transactions involving the

and delivery of goods and services in the marketplace.”

India currently does not have specific tax law provisions in place to regulate the

e-commerce industry. As a result, we have seen a lot disputes in past two

years, mainly in Karnataka

The Empowered Committee

consensus among state

and have dedicated a sep

the issues pertaining to E

2. OUTLINES OF GOODS AN

2.1 Goods and Services Tax (

domestic consumption. GS

services in India except those

importation of goods and services into India.

2.2 The dual GST is expected to expand the tax bases and simplify and harmonise

the conception tax systems, t

pay both Centre and State duties;

2.3 Payment of tax is made in stages by the intermediaries in the production and

distribution process. Although the tax would be paid throughout the production

and distribution chain, it is ultimately passed on to the final consumer. Therefore,

the tax itself is not a cost to the intermediaries and does not appear as an

expense item in their financial statements.


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Commerce makes very difficult to provide any standard

definition for E Commerce, it can usefully be defined as “the use of computer

networks to facilitate transactions involving the production, distribution, and sale

and delivery of goods and services in the marketplace.”


commerce industry. As a result, we have seen a lot disputes in past two

Karnataka and Kerala.

Empowered Committee-of-State-Finance-Ministers constituted to create

consensus among states on GST Laws, have understood these glitches

dedicated a separate chapter under Model GST Law,

the issues pertaining to E-Commerce business.

OUTLINES OF GOODS AND SERVICES TAX (GST)

Goods and Services Tax (GST), as proposed, is a multi-stage dual tax on

domestic consumption. GST is charged on all taxable supplies of goods and

services in India except those specifically exempted. GST is also charged on

importation of goods and services into India.

The dual GST is expected to expand the tax bases and simplify and harmonise

tax systems, the supply of goods and services shall be liable to

pay both Centre and State duties;

of tax is made in stages by the intermediaries in the production and

process. Although the tax would be paid throughout the production


a cost to the intermediaries and does not appear as an

expense item in their financial statements.


Commerce makes very difficult to provide any standard

can usefully be defined as “the use of computer

production, distribution, and sale


commerce industry. As a result, we have seen a lot disputes in past two-three

constituted to create

ST Laws, have understood these glitches therefore

under Model GST Law, for addressing

stage dual tax on

T is charged on all taxable supplies of goods and

specifically exempted. GST is also charged on

The dual GST is expected to expand the tax bases and simplify and harmonise

he supply of goods and services shall be liable to

of tax is made in stages by the intermediaries in the production and

process. Although the tax would be paid throughout the production


a cost to the intermediaries and does not appear as an

2.4 The State of Origin shall not be entitled to levy taxes on the goods and services

in the course of interstate trade and commerce. The State where goods an

services consumed will be entitled to receive such taxes;

2.5 The goods and services shall be liable to pay IGST i.e., Integrated Goods and

Service Tax which is sum total of State and Center duties (SGST+IGST).The

Centre Government would collect the IGST

2.6 The supplier in the exporting state would charge IGST on inter

use the input CGST on payment of IGST, the supply receiver shall make use of

that IGST for the payment of CGST at the point of destin

the input of SGST for the payment of IGST on the Inter

state and the buyer shall make use of IGST for the payment of output SGST on

transaction in the destination stat

2.7 The utilisation of SGST for t

payment of SGST at the d

would result in almost n

both would mostly canc

of transactions.

2.8 Every registered supplier an

and GSTR-3 etc, these returns

payment of output IGST

quantum of difference between them. This difference will decide who has to

compensate whom or to cancel each other over a period of time and over a

number of transactions.

2.9 The Central Government would pay, to the importing St

for the payment of the SGST in the importing State on subsequent supplies in

that State. The buyer in the importing state can claim the Input Tax Credit of the

IGST paid while discharging his tax liability in his State while filing

basis of the invoices. In the IGST model, an uninterrupted input tax credit on the

The State of Origin shall not be entitled to levy taxes on the goods and services

in the course of interstate trade and commerce. The State where goods an

services consumed will be entitled to receive such taxes;

The goods and services shall be liable to pay IGST i.e., Integrated Goods and

Tax which is sum total of State and Center duties (SGST+IGST).The

Centre Government would collect the IGST in the course of Inter-

The supplier in the exporting state would charge IGST on inter-state supplies and

on payment of IGST, the supply receiver shall make use of

that IGST for the payment of CGST at the point of destination. The seller may use

the input of SGST for the payment of IGST on the Inter-state supply in the origin


transaction in the destination state;

The utilisation of SGST for the payment of IGST at the origin point and IGST for

payment of SGST at the destination point with effective and appropriate control

would result in almost no gain or/and no loss to the State or to the centre as

both would mostly cancel each other over a period of time and over a number

registered supplier and receiver require to furnish Retunes GSTR

3 etc, these returns will contain the details of input of SGST used for

IGST, input IGST used for the payment of output GST and the



number of transactions.

Government would pay, to the importing State, the input IGST used



IGST paid while discharging his tax liability in his State while filing


The State of Origin shall not be entitled to levy taxes on the goods and services

in the course of interstate trade and commerce. The State where goods and

The goods and services shall be liable to pay IGST i.e., Integrated Goods and

Tax which is sum total of State and Center duties (SGST+IGST).The

-state supplies;

state supplies and

on payment of IGST, the supply receiver shall make use of

ation. The seller may use

state supply in the origin


payment of IGST at the origin point and IGST for

estination point with effective and appropriate control

o gain or/and no loss to the State or to the centre as

d of time and over a number

d receiver require to furnish Retunes GSTR-1, GSTR-2

will contain the details of input of SGST used for

payment of output GST and the



ate, the input IGST used



IGST paid while discharging his tax liability in his State while filing return on the


Inter-State supply could be maintained. Further no refund claim will be required

in the exporting as the Input T Credit used up while paying the tax. The orde

set-off the output liabilities of IGST, first the IGST input will be utilized, and after

that CGST input and then SGST input will be utilised.

2.10 The IGST will be administered by the authorities administering CGST. The

account settlement could be

3. BUSINESS OUTLOOK

3.1 E-Commerce

Electronic commerce

the trading or facilitation of trading in products or services using computer networks,

such as the Internet

technologies such as

management, Internet marketing,

interchange (EDI), inventory management systems, and automat

collection systems. Modern electronic commerce typically uses the

Web for at least one part of the transaction's life cycle although it may also use

other technologies such as e

E-commerce businesses may employ some or all of the f

Online shopping web sites for retail sales direct to consumers

Providing or participating in

business-to-consumer or consumer

Business-to-business

Gathering and u

media

Business-to-business

Marketing to prospective and established customers by e

example, with newsletters)

Engaging in retail

Online financial exchanges for currency exchanges or trading purposes

State supply could be maintained. Further no refund claim will be required

in the exporting as the Input T Credit used up while paying the tax. The orde

off the output liabilities of IGST, first the IGST input will be utilized, and after

that CGST input and then SGST input will be utilised.

The IGST will be administered by the authorities administering CGST. The

account settlement could be assigned to any nodal agency.

Electronic commerce, commonly written as e-commerce or eCommerce

or facilitation of trading in products or services using computer networks,

Internet or online social networks. Electronic commerce draws on

technologies such as mobile commerce, electronic funds transfer,

Internet marketing, online transaction processing,

inventory management systems, and automat

systems. Modern electronic commerce typically uses the

for at least one part of the transaction's life cycle although it may also use

other technologies such as e-mail.

commerce businesses may employ some or all of the following:

web sites for retail sales direct to consumers

Providing or participating in online marketplaces, which process third

consumer or consumer-to-consumer sales

business buying and selling

Gathering and using demographic data through web contacts and social

business electronic data interchange

Marketing to prospective and established customers by e

newsletters)

for launching new products and services


State supply could be maintained. Further no refund claim will be required

in the exporting as the Input T Credit used up while paying the tax. The order of

off the output liabilities of IGST, first the IGST input will be utilized, and after

The IGST will be administered by the authorities administering CGST. The

commerce or eCommerce, is

or facilitation of trading in products or services using computer networks,

Electronic commerce draws on

electronic funds transfer, supply chain

online transaction processing, electronic data

inventory management systems, and automated data

systems. Modern electronic commerce typically uses the World Wide

for at least one part of the transaction's life cycle although it may also use

ollowing:

web sites for retail sales direct to consumers

online marketplaces, which process third-party

sing demographic data through web contacts and social

Marketing to prospective and established customers by e-mail or fax (for


Source :Wikipedia

3.2 Business Models

E-commerce business acts under multiple

as business Model. If we observe minutely

business is different from another e

of e-commerce business models

a. Business that has a presence in the physical world and without a commercial

Internet presence. Virtually many established business now has a website but

uses its site for passive promotional purposes rather than to engage in online

commercial activity.

b. Business that combines a physical offline presence with one online. This model of

business engages in commercial activity through its physical stores and also

from its website.

c. Business that operates excl

“dot-com” company.

3.3 Different e-commerce

a. Business-to-consumer

consumers in a retail or s

b. Business-to-business comp

businesses. Although B2B has less p

agree that the B2B sector garners a much higher volume of business than

does B2C.

c. Consumer-to-consumer companies (C2C) facilitate transactions between

individual consumers.

d. Government-to-business (G2B) and

e. Government-to-consumer/citizen (G2C).

commerce business acts under multiple business arrangements, popularly known

we observe minutely the business model of one e

business is different from another e-commerce. Broadly there are three

commerce business models prevalent in India:

Business that has a presence in the physical world and without a commercial

t presence. Virtually many established business now has a website but


Business that combines a physical offline presence with one online. This model of

iness engages in commercial activity through its physical stores and also

Business that operates exclusively online. This model of business is also known as

commerce market categories

consumer companies (B2C) are involved with individual

consumers in a retail or service setting.

business companies (B2B) provide goods or services to other

businesses. Although B2B has less public prominence than B2C, most analysts


consumer companies (C2C) facilitate transactions between

individual consumers.

business (G2B) and

consumer/citizen (G2C).

arrangements, popularly known

the business model of one e-commerce

here are three major kinds

Business that has a presence in the physical world and without a commercial

t presence. Virtually many established business now has a website but


Business that combines a physical offline presence with one online. This model of

iness engages in commercial activity through its physical stores and also

usively online. This model of business is also known as

companies (B2C) are involved with individual

anies (B2B) provide goods or services to other

ublic prominence than B2C, most analysts


consumer companies (C2C) facilitate transactions between

4. Impact of GST on e-commerce

GST is neutral towards business, GST is not incident on a business

Goods and Services, wherein the GST paid on input is available for set

the GST’s incident on output supply.

The incident of GST on

model. The Model GST Laws provides a separate chapter for e

the purpose of admisntration and collection of GST to bring tax efficiency under

GST framework.

The GST have impacts in t

a) Persons required to collect

b) General compliances pertain

who are engaged in the b

c) Additional compliances

commerce business;

d) General and specific ru

i. Place o f Supply;

ii. Time of supply

iii. Value of supply

iv. Reverse charge mechanism

5. ANALYSIS OF GST MODE

Though there is a separate chapter (chapter

commerce but there are several other provisions

business are scattered though out the act

commerce

neutral towards business, GST is not incident on a business but on Supply of

Goods and Services, wherein the GST paid on input is available for set

the GST’s incident on output supply.

The incident of GST on Supply, irrespective to the nature of business and business

model. The Model GST Laws provides a separate chapter for e


The GST have impacts in the following aspects of E-Commerce.

Persons required to collect and pay GST

General compliances pertaining to GST which are applicable to all person

who are engaged in the business

Additional compliances to be made by the persons who are engage in

commerce business;

General and specific rules of supply applicable to e-commerce business

Place o f Supply;

Reverse charge mechanism

ANALYSIS OF GST MODEL LAWS

Though there is a separate chapter (chapter –XIB) is provided to deal with e

commerce but there are several other provisions applicable to e

business are scattered though out the act.

but on Supply of

Goods and Services, wherein the GST paid on input is available for set-off from

Supply, irrespective to the nature of business and business

model. The Model GST Laws provides a separate chapter for e-commerce for


ing to GST which are applicable to all person

to be made by the persons who are engage in e-

commerce business

XIB) is provided to deal with e-

to e-commerce

“GOODS’’

(48) “goods’’ means every kind of movable

money but includes securities, growing crops, grass and things attached to or forming

part of the land which are agreed to be severed before supply or under the contract of

supply;

Explanation– For the purpose of

any intangible property.

SERVICES

(88) “services’’ means anything other than goods;

Explanation: Services include intangible property and actionable claim but does not

include money.

5.1 Application of Place of Suppl

5.1A Place of Supply of goods

Sec.

No.

Circumstances

(2) Supply involves movement of goods by

supplier/recipient/e-commerce operator

(2A) i. Supplier acting on direction of

commerce operator

ii. Delivered goods to recipient

iii. Before/during movement of goods

iv. Either by transfer of documents of title or

otherwise

v. Th`en – shall be deemed

has received the goods

(48) “goods’’ means every kind of movable property other than actionable claim and



For the purpose of this clause, the term ‘moveable property’ shall not

(88) “services’’ means anything other than goods;

: Services include intangible property and actionable claim but does not

Supply in e-commerce transitions

of goods:

Place of Supply of Goods

Supply involves movement of goods by

commerce operator

Location of delivery This is a general practice where eoperators build order like amazon or flipkart are working

Supplier acting on direction of e-

Delivered goods to recipient

Before/during movement of goods

Either by transfer of documents of title or

shall be deemed –third person

has received the goods

Principal place of business of

operator

This situation may arise in B2B

transactions

property other than actionable claim and



this clause, the term ‘moveable property’ shall not include

: Services include intangible property and actionable claim but does not

Place of Supply of Goods

general practice where e-com. operators build order like amazon or flipkart are working

Principal place of business of e-commerce

ituation may arise in B2B

vi. Eg Bill to ship to supply in transit sales

(3) Supply does not involve movement of goods

(4) Goods assembled/installed at site

(5) Supplied on board a conveyance

(6) Place cannot be determined as abo

5.1B Place of Supply of Services

Sec. No. Services

2 Supplied to registered person

3 Supplied to person other than registered person

4 Service in relation to

(architects/interior decorators etc), lodging,

accommodation, rent for functions and

ancillary services

5 Restaurant, catering, personal grooming,

cosmetic & Plastic surgery

6 Service in relation to training & performance

Eg Bill to ship to supply in transit sales

Supply does not involve movement of Location of goods at time of delivery to recipient This situation may arise in B2B transactions

Goods assembled/installed at site Place of such installation/assembly This situation may arise in B2B transactions

Supplied on board a conveyance Location at which such goods are taken on board This situation may arise in B2B transactions

Place cannot be determined as above Determined by law made by parliament w.r.t. recommendation of board

Place of Supply of Services


Supplied to registered person Location of such person

This may arise on B2B transactions

other than registered person Location of recipient as per records otherwise,

location of supplier

This situation may arise in B2transactions; This rule also applicable to downloadable

products

Service in relation to immovable property

/interior decorators etc), lodging,

accommodation, rent for functions and

Location of such immovable property

If an e-commerce operator build order on line and provide service in relation to immovable properties, the place of supply of service shall be the place where the service will be performed

Restaurant, catering, personal grooming,

cosmetic & Plastic surgery

Location where services actually performed

Services provided by Food Panda, Geetanjali, shall fall under this category

Service in relation to training & performance Location of registered person receiving the

Location of goods at time of delivery to


installation/assembly


Location at which such goods are taken


by law made by parliament w.r.t. recommendation of board


Location of such person

This may arise on B2B transactions

Location of recipient as per records otherwise,

ituation may arise in B2C

This rule also applicable to downloadable

Location of such immovable property

commerce operator build order on line and provide service in relation to immovable properties, the place of supply

ervice shall be the place where the service will be performed.

Location where services actually performed

Services provided by Food Panda, Geetanjali, shall fall under this category.

Location of registered person receiving the

appraisal

7 Admission to events/amusement parks &

ancillary services

8 Organisation of events & ancillary services &

assigning of sponsorship

10 Transportation of passengers

Example1

A mobile phone booked on Amazon

commence operator which is situated at Bangalore, and delivered to Kanpur,

shall be the place of supply?

The place of supply shall be place of deliver

Example 2

services

If person not registered

place where services performed

this will include online training by way of video conferencing.

events/amusement parks & Location where event is held or park is situated

It is immaterial the location from where the booking were madesituated

Organisation of events & ancillary services &

sorship


services


actually held

Webcasting and Satellite classes

Transportation of passengers Location of registered person receiving the

services (booking

transportations facilities etc. for the

purpose of getting credit)


passenger embarks on conveyance for a

continuous journey.

Amazon site on New Delhi, and the supply

which is situated at Bangalore, and delivered to Kanpur,

The place of supply shall be place of delivery ie, Kanpur.

If person not registered –

place where services performed

online training by way of video conferencing.

Location where event is held or park is situated

It is immaterial the location from where the booking were made or office of operatory


If person not registered –place where event

Webcasting and Satellite classes


(booking Ola/Uber or inter-state

transportations facilities etc. for the

purpose of getting credit)

If person not registered – place where

passenger embarks on conveyance for a

continuous journey.

upply delivered by e-

which is situated at Bangalore, and delivered to Kanpur, what

A TV Set booked from Kanpur on

Television were delivered from

Delhi, the address of delivery.

i. Depot, Gurgaon acting on direction of

ii. Delivered goods to recipient

iii. Supply by transfer of documents of title

The place of supply shall be Delhi

of supply was Delhi.

Example 3

A TV Set booked from Kanpur on portal of Amazon which is situated at Bangalore, the

Television were delivered from a

Gurgaon to Delhi, the address of deli

We will test this question from len

complied with?

i. Macromax (Supplier) acting on

ii. Delivered goods to recipient:

iii. Before/during movement of goods

iv. Either by transfer of documents of title or o

Thus the test under Section 2A is not complied with, hence it shall not deemed to a

supply from Macromax to Amazon but it is a Supply from Maxcromax to Purchaser and

place of delivery will be the place where the goods will actually delivered.

5.2 Time of Supply Time of Supply a Legal fiction

In absence of a concrete regulations,

actual ‘time of supply’ particularly in

coupled with wide definition of Supply.

booked from Kanpur on portal of Amazon which is situated at Bangalore, the

Television were delivered from a Amazon managed depot situated at Gurgaon to

acting on direction of e-commerce operator Amazon;

Delivered goods to recipient at Delhi

by transfer of documents of title as well as physically

place of supply shall be Delhi though ordered was placed from Kanpur


Television were delivered from a Macromax (Supplier) managed depot situated at

Gurgaon to Delhi, the address of delivery.

We will test this question from lenses of Section 2A whether the following condition are

acting on direction of e-commerce operator: Yes

Delivered goods to recipient: Yes

Before/during movement of goods: No

Either by transfer of documents of title or otherwise : Yes




Time of Supply a Legal fiction

In absence of a concrete regulations, It would be is very difficult to determine the

actual ‘time of supply’ particularly in e-commerce era due to its dynamic nature

with wide definition of Supply.

situated at Bangalore, the

depot situated at Gurgaon to

Amazon;

from Kanpur, the place


managed depot situated at

2A whether the following condition are

Yes




is very difficult to determine the

dynamic nature

Under GST framework the ‘Time of Supply

in one hand Government wants to tax future income in present wherein

to pay tax only after the collection of tax from its customers.

Thus Model GST Law has created a legal fiction under Section 12 and Section 13 to

determine the time of supply, which is based on international practice an

provided by OECD.

5.2A Time of Supply of Goods

Thus the provisions of Section 12 ‘

to deal with different situations of supply of

The different situations are:

1. where the goods are deli

2. where the nature of goo

3. Where goods is delivered

4. where the goods are d

accounts or successive pa

5. Where the goods being sent

terms;

6. Supply of Goods by any way which is not falling under the above.

The time of supply shall be the earliest date of the following:

(a) the date on which the goods are removed by the supplier for supply to the

recipient

(b) the date on which the supplier issues the

(c) the date on which the supplier receives the payment with respect to the supply;

or

(d) the date on which the recipient shows the receipt of the goods in his books of

account.

ime of Supply’ is very important from taxation

Government wants to tax future income in present wherein

to pay tax only after the collection of tax from its customers.

created a legal fiction under Section 12 and Section 13 to

ly, which is based on international practice an

Thus the provisions of Section 12 ‘Time of supply of goods’ is a set of different provisions

to deal with different situations of supply of goods.

where the goods are delivered to recipient;

where the nature of goods are as such it could not delivered to recip

Where goods is delivered to agent or principal;

where the goods are delivered continuously and successive statements of

accounts or successive payments are involved;

Where the goods being sent or taken on approval or sale or return or similar

Supply of Goods by any way which is not falling under the above.

The time of supply shall be the earliest date of the following:

the date on which the goods are removed by the supplier for supply to the

the date on which the supplier issues the invoice with respect to the supply; or

the date on which the supplier receives the payment with respect to the supply;

the date on which the recipient shows the receipt of the goods in his books of

taxation point of view,

Government wants to tax future income in present wherein taxpayers want

created a legal fiction under Section 12 and Section 13 to

ly, which is based on international practice and guidelines

ime of supply of goods’ is a set of different provisions

ds are as such it could not delivered to recipient;

elivered continuously and successive statements of

or taken on approval or sale or return or similar

Supply of Goods by any way which is not falling under the above.

the date on which the goods are removed by the supplier for supply to the

invoice with respect to the supply; or

the date on which the supplier receives the payment with respect to the supply;

the date on which the recipient shows the receipt of the goods in his books of

Example 4:

The order received by Operator

brand owner on 16/05/2017 or the goods removed from depot on 17/05/2017 and

delivered it to recipient on 20/05/2017 alongwith invoice dated 16/05/2017.

Case 1. Payment made by electronic transfer on 15/0

Case 2. Payment on the basis of cash on delivery 20/05/2017.

Case 1. Date of payment – 15/05/2017

Case 2. Date of Invoice – 16/06/2017

5.2B Time of Supply of Services

The determination of time of suppl

cannot be perceived by eye, th

taxpayers provide the departm

The Supply of Services are v

downloading of music, nnmovies,

financial products like insurances, wallets

The provision of Section 13 clearly specifies the liability to pay GST only arises at the time

of Supply as per the provision of Section 13 and the time of service will strictly determine

as per the provision of Section 13 and not by any other mechanism.

Operator on 15/5/2017 and operator passed the order


ient on 20/05/2017 alongwith invoice dated 16/05/2017.

Case 1. Payment made by electronic transfer on 15/05/2017 at the time of order.

Case 2. Payment on the basis of cash on delivery 20/05/2017.

15/05/2017

16/06/2017

Time of Supply of Services

The determination of time of supply in respect to a service is not possible,

cannot be perceived by eye, thus only admission by way of documents and action of

provide the department to determine the time of supply.

The Supply of Services are very dominant in E-commerce business, it

movies, software, education products, safelight classes,

financial products like insurances, wallets etc.

he provision of Section 13 clearly specifies the liability to pay GST only arises at the time

vision of Section 13 and the time of service will strictly determine

as per the provision of Section 13 and not by any other mechanism.

the order it the


ient on 20/05/2017 alongwith invoice dated 16/05/2017.

5/2017 at the time of order.

service is not possible, as the service

only admission by way of documents and action of

commerce business, it include

software, education products, safelight classes,

he provision of Section 13 clearly specifies the liability to pay GST only arises at the time

vision of Section 13 and the time of service will strictly determine

Provisions under Model GST Laws:

Section 13: Time of supply of Services

(1) The liability to pay CGST/SGST on service

determined in terms of the provisions of this section.

(2) The time of supply of services shall be:

(a) the date of issue of invoice or the date of receipt of payment, whichever is earlier, if

the invoice is issued within the prescribed period; or

(b) the date of completion of the provision of service or the date of receipt of

payment, whichever is earlier, if the invoice

(c) the date on which the

account, in a case where the pr

Explanation 1.- For theii purpose

have been made to the extent it

payment.

Explanation 2.- For the purpose of claus

receipt of payment” shall be the date on which the payment is entered in the books of

accounts of the supplier or the date on which the

account, whichever is earlier.

(3) In case of continuous supply of services, the time of supply shall be

(a) where the due date of payment is ascertainable from the contract, the date on

which the payment is liable to be

invoice has been issued or any payment has been received by the supplier of service;

Provisions under Model GST Laws:WERTYUIOPWETYUIOWETYUIOASDFGHWEIERTYU

Section 13: Time of supply of Services

(1) The liability to pay CGST/SGST on services shall arise at the time of supply, as

determined in terms of the provisions of this section.

(2) The time of supply of services shall be:-


within the prescribed period; or


payment, whichever is earlier, if the invoice is not issued within the prescribed period; or

(c) the date on which the trecipient shows the receipt of services in his books of

account, in a case where the provisions of clause (a) or (b) do not apply.

purposes of clauses (a) and (b), the supply shall be deemed to

have been made to the extent it is covered by the invoice or, as the case may be, the

For the purpose of clause (a) and (b) of sub-section (2), “the date of


accounts of the supplier or the date on which the payment is credited to his bank

(3) In case of continuous supply of services, the time of supply shall be -


which the payment is liable to be made by the recipient of service, whether or not any


WERTYUIOPWETYUIOWETYUIOASDFGHWEIERTYU

s shall arise at the time of supply, as



is not issued within the prescribed period; or

eipt of services in his books of

ovisions of clause (a) or (b) do not apply.

s of clauses (a) and (b), the supply shall be deemed to

as the case may be, the

section (2), “the date of


payment is credited to his bank


made by the recipient of service, whether or not any


(b) where the due date of payment is not ascertainable from the contract, each such

time when the supplier of servic

is earlier;

(c) where the payment is linked to the completion of an event, the time of completion

of that event;

(4) For the purposes of sub section (3) above, the Central or a State Government may

on the recommendation of the Council, specify, by notification, the supply of services

that shall be treated as continuous supply of services;

(5) In case of supplies in respect of wh

charge basis, the time of isupply sh

(a) the date of receipt of iservic

(b) the date on which the paym

(c) the date of receipt of invoice,

(d) the date of debit in the books

Explanation.- For the purpose of clause (b) of sub

payment is made” shall be the date on which the payment is entered in the books of

accounts of the recipient or the date on which the payment is debited in his bank

account, whichever is earlier.

(6) In a case where the supply of services ceases under a contract before the

completion of the supply, such services shall be deemed to have been provided at the

time when the supply ceases.


time when the supplier of service receives the payment, or issues an invoice, whichever



the recommendation of the Council, specify, by notification, the supply of services

that shall be treated as continuous supply of services;

(5) In case of supplies in respect of which tax is paid or liable to be paid on reverse

upply shall be the earliest of the following dates, namely

services, or

(b) the date on which the payment is made, or

(c) the date of receipt of invoice, or

(d) the date of debit in the bookso of accounts.

purpose of clause (b) of sub-section (5), “the date on which the







e receives the payment, or issues an invoice, whichever



the recommendation of the Council, specify, by notification, the supply of services

ich tax is paid or liable to be paid on reverse

all be the earliest of the following dates, namely-

section (5), “the date on which the





(7) Where it is not possible to determine the time of supp

specified in sub-sections (2), (3), (5) and (6), the time of supply shall

(a) in a case where a periodical return has to be filed, be the date on which such

return is to be filed; or

(b) in any other case, be the date on which

6 ANALYSIS OF LEGAL PROVISION UNDER GST MO

COMMENCE

6.1 Where the Invoice issued (with

‘Time of Supply’ will be the earlie

Date of issue of invoice o

Date of receipt of payme

Example 2:

The order received by Operator

passed the order it the brand owner on

software, the product were sent immediately on 16/05/

downloaded on 20/06/2017.

Case 1. The payment made electronically, at the time of 15/05/2017 and the invoice

generated immediately after payment.

Case 2. The payment made electronically at the time of download on 20/06/2017 and

the invoice generated immediately after payment.

The time of Supply

The model GST law made clear and goods or services, it explained any

7) Where it is not possible to determine the time of supply of services in the manner

sections (2), (3), (5) and (6), the time of supply shall


(b) in any other case, be the date on which the CGST/SGST is paid.

OVISION UNDER GST MODEL LAW THEIR APPLICATION IN

1 Where the Invoice issued (within prescribed time):

‘Time of Supply’ will be the earliest date of the following:

Date of issue of invoice or

Date of receipt of payment

Operator for anti-virus package on 15/5/2017

passed the order it the brand owner on 16/05/2017 or the downloadable link of the

software, the product were sent immediately on 16/05/2017, the anti


generated immediately after payment.

The payment made electronically at the time of download on 20/06/2017 and

the invoice generated immediately after payment.

The model GST law made clear and ends all controversy whether a software is goods or services, it explained anything which is intangible is service.

ly of services in the manner


THEIR APPLICATION IN E-

virus package on 15/5/2017 and operator

16/05/2017 or the downloadable link of the

2017, the anti-virus actually


The payment made electronically at the time of download on 20/06/2017 and

ends all controversy whether a software is thing which is intangible is service.

Case 1. Date of payment i.e., 15/05/2017

Case 2. Date of download 20/06/2017, [though link were mailed on 16/05/2017 but the

software supply done after downloading date i.e., 20/06/2017].

6.2 Where the invoice not issued within prescribed time:


the date of completion of the provision of service or

the date of receipt of payment

The term ‘provisions of service’,

date of Supply of Service instead.

6.3 Where the invoice is not issued:

The date on which the recipient sho

‘How a taxpayer will bcomply

is a big questing we need to w

6.4 Under Reverse Charge Mecha

The time of supply shall be the

the date of receipt of services, or

the date on which the payment is made, or

the date of receipt of invoice, or

the date of debit in the books of accounts.

The applicability of reverse charge mechanism will be declared by notification by Central

Government and State Government on

i.e., 15/05/2017


software supply done after downloading date i.e., 20/06/2017].

issued within prescribed time:


the date of completion of the provision of service or

the date of receipt of payment

‘provisions of service’, came from the prior practice, it should be

date of Supply of Service instead. Hope that final draft will rectify this error.

3 Where the invoice is not issued:

The date on which the recipient shows the receipt of services in his books of account.

comply for the entries in the books of account

is a big questing we need to wait for final draft of the GST Act.

Under Reverse Charge Mechanism

The time of supply shall be the iiearliest of the following dates, namely-

the date of receipt of services, or

date on which the payment is made, or

the date of receipt of invoice, or

the date of debit in the books of accounts.


Government and State Government on recommendation of GST Council.


me from the prior practice, it should be the

Hope that final draft will rectify this error.

in his books of account.

books of account of recipient’,


The possibilities of situations mentioned in point no. 2, 3 and 4 are

commerce business.

6.5 In case of continuous supply of services,

“Common continuous supplies of services are

are On-line education/training programs, Satellite classes or subscription

of online video programmers will fall under this category of supply

The time of supply shall be -

where the due date of payment is ascertainable from the contract

the date on which the payment is liable to be made by the recipient, whether or

not any invoice has been issued or

of service;

where the due date of paym

Supply of Service shall be ea

payment, or issues an invoic

where the payment is llinked

of that event;

Example 3

Krishna, motivational trainer

providing 15 hour online sessions to their employee, the contract entered on 1

2017, for which he will be getting Rs. One Lakh per month.

a. If the contract provides that every 7

compensation : the time of Supply will be 7

b. If there is no provision in contract with regard to the date of payment, the time of

supply will be the date on which Krishna will receive the compensa

The possibilities of situations mentioned in point no. 2, 3 and 4 are

5 In case of continuous supply of services,

Common continuous supplies of services are in e-commerce business

line education/training programs, Satellite classes or subscription

of online video programmers will fall under this category of supply

where the due date of payment is ascertainable from the contract:

the payment is liable to be made by the recipient, whether or

not any invoice has been issued or any payment has been received by the supplier

the due date of payment is not ascertainable from the contract

hall be each such time when the supplier of service receives the

payment, or issues an invoice, whichever is earlier;

linked to the completion of an event: the time of completion

Krishna, motivational trainer entered into a contract with Infosystem Limited for

providing 15 hour online sessions to their employee, the contract entered on 1

2017, for which he will be getting Rs. One Lakh per month.

If the contract provides that every 7th of the month Krishna will get the monthly

: the time of Supply will be 7th of every month.

If there is no provision in contract with regard to the date of payment, the time of

supply will be the date on which Krishna will receive the compensa

The possibilities of situations mentioned in point no. 2, 3 and 4 are remote in e-

commerce business

line education/training programs, Satellite classes or subscription

of online video programmers will fall under this category of supply”.

the payment is liable to be made by the recipient, whether or

any payment has been received by the supplier

ent is not ascertainable from the contract: the time of

ch such time when the supplier of service receives the

: the time of completion

entered into a contract with Infosystem Limited for

providing 15 hour online sessions to their employee, the contract entered on 1st April,

of the month Krishna will get the monthly

If there is no provision in contract with regard to the date of payment, the time of

supply will be the date on which Krishna will receive the compensation or date of

invoice issued by it or the date on which 15 hour of program is over

earlier, shall be time of Supply of the Service.

6.6 In a case where the supply of services Ceases under a contract before the



6.7. Residual Supply of Services

of services in the manner the time of supply shall

in a case where a periodi

return is to be filed; or

in any other case, be the date

Dates of entries on the followin

‘Supply of Time’

1. Invoice;

2. Books and accounts;

3. Banks statement;

4. Receipt of goods or gate pass;

5. Receipt of possession of good;

6. Returns;

7. Agreement for continuous supply.

or the date on which 15 hour of program is over

earlier, shall be time of Supply of the Service.

6 In a case where the supply of services Ceases under a contract before the

such services shall be deemed to have been provided at the


7. Residual Supply of Services, where it is not possible to determine the time of supply

of services in the manner the time of supply shall

in a case where a periodical return has to be filed, be the date on which such

in any other case, be the date on which the CGST/SGST is paid.

Dates of entries on the following documents, which are important for evidencing for

Receipt of goods or gate pass;

Receipt of possession of good;

Agreement for continuous supply.

or the date on which 15 hour of program is over, whichever is

6 In a case where the supply of services Ceases under a contract before the

such services shall be deemed to have been provided at the

, where it is not possible to determine the time of supply

cal return has to be filed, be the date on which such

g documents, which are important for evidencing for

8. SPECIFIC COMPLIANCES

The Model GST Laws provides

of admisntration and collection of GST to bring tax efficiency under GST framework,

this chapter impose the burden of compliances and identification of chain of

supply.

43B. Definitions

In this Chapter, unless the context otherwise requires,

(a) ‘aggregator’ means a pers

and by means of the applica

customer to connect with th

brand name or trade name

(b) ‘brand name or trade n

registered or not, that is

writing, or a symbol, monogram,

of indicating, or so as to indicate

service and some other person using the name or mark with or

of the identity of that person;

(c) ‘branded Services’ means services which are sup

operator under its own brand name or trade name, whether registered or not;

(d) ‘electronic commerce’

or transmitting of funds or data, over an electronic netw

using any of the applications that rely on the internet,

instant messaging, shopping carts, Web s

Integration (UDDI), File Transfer Protocol (FTP), and Ele

SPECIFIC COMPLIANCES PROVISIONS

provides a separate chapter for e-commerce for the purpose



CHAPTER–XIB

ELECTRONIC COMMERCE

In this Chapter, unless the context otherwise requires, -

means a person, who owns and manages an electronic platform,

by means of the application and a communication device, enables a potential

ith the persons providing service of a particular kind under the

or trade name of the said aggregator;

(b) ‘brand name or trade name’ means, a brand name or a trade name, whether

registered or not, that is iiito say, a name or a mark, such as an i

or a symbol, monogram, logo, label, signature, which is used for the purpose

indicating, or so as to indicatef a connection, in the course of trade, between a

and some other person using the name or mark with or without a

identity of that person;

means services which are supplied by an electronic commerce


(d) ‘electronic commerce’ shall mean the supply or receipt of goods and / or services,

or transmitting of funds or data, over an electronic network, primarily the internet, by

using any of the applications that rely on the internet, like but not limited to e

instant messaging, shopping carts, Web services, Universal Description, Discovery and

Integration (UDDI), File Transfer Protocol (FTP), and Electronic Data Interchange (EDI),

commerce for the purpose



ges an electronic platform,

enables a potential

e persons providing service of a particular kind under the

means, a brand name or a trade name, whether

say, a name or a mark, such as an invented word or

logo, label, signature, which is used for the purpose

rse of trade, between a

without any indication

plied by an electronic commerce


r receipt of goods and / or services,

ork, primarily the internet, by

like but not limited to e-mail,

rsal Description, Discovery and

ctronic Data Interchange (EDI),

whether or not the payment is conducted online and whether or not the ultimate

delivery of the goods and/or services is

(e) ‘electronic commerce operator’

indirectly, owns, operates or manages an electronic platform that is engaged in

facilitating the supply of any goods and/or services or in providing any i

any other services incidental to or in connection there with but shall not include

persons engaged in supply of such goods and/or services on their own behalf.

43C. Collection of tax at source

(1) Notwithstanding anything to the contrary

arrangement or memorandum of understanding, every

operator (hereinafter referred to in thi

credit of any amount to the acc

time of payment of any amo

collect an amount, out of th

consideration towards the

calculated at such rate a

Government on the recomm

(2) The power to collect the a

prejudice to anyii other mode of rec

(3) The amount collected under sub

appropriate Government by the operator within ten days

in which such collection is made, in the manner prescribed.

(4)(a) Every operator shall,

under sub-section (1), towards outward supplies of goods and/or services effected

through it, during a calendar month,

within ten days after the end of such calendar month.

(b) The statement under clause (a) shall contain, inter alia, the details of the amount


of the goods and/or services is done by the operator;

(e) ‘electronic commerce operator’ shall include every person who, directly or


facilitating the supply of any goods and/or services or in providing any i


engaged in supply of such goods and/or services on their own behalf.

43C. Collection of tax at source

(1) Notwithstanding anything to the contrary contained in the Act or in any contract,

arrangement or memorandum of understanding, every electronic commerce

(hereinafter referred to in this section as the “operator”) shall,

any amount to the account of the supplier of goods and/or services or

of any amount in cash or by any other mode, whichever is earlier

amount, out of the amount payable or paid to the supplier, representing

towards the supply of goods and /or services made through

calculated at such rate as may be notified in this behalf by the Central/State

Government on the recommendation of the Council.

(2) The power to collect the amount specified in sub-section (1)

other mode of recovery from the operator.

collected under sub-section (1) shall be paid to the credit of the

appropriate Government by the operator within ten days after the end of the month

ollection is made, in the manner prescribed.

(4)(a) Every operator shall, furnish a statement, electronically, of all amounts collected

section (1), towards outward supplies of goods and/or services effected

through it, during a calendar month, in such form and manner as may be prescribed,

after the end of such calendar month.



shall include every person who, directly or


facilitating the supply of any goods and/or services or in providing any information or


engaged in supply of such goods and/or services on their own behalf.

contained in the Act or in any contract,

electronic commerce

s section as the “operator”) shall, at the time of

ount of the supplier of goods and/or services or at the

whichever is earlier,

e amount payable or paid to the supplier, representing

supply of goods and /or services made through it,

may be notified in this behalf by the Central/State

section (1) shall be without

paid to the credit of the

after the end of the month

, electronically, of all amounts collected

section (1), towards outward supplies of goods and/or services effected

in such form and manner as may be prescribed,


collected on behalf of each supplier in respect of all su

effected through the operator and the details of such supplies during the said calendar

month.

(5) Any amount collected in accordance with the provisions of this section and paid

to the credit of the appropriate Government shall be

tax on behalf of the concerned supplier and the

electronic cash ledger, of the tax collected and reflected in the statement of the

operator filed under sub-section (4), in the manner prescribed.

(6) The details of supplies and the amount collected under sub

calendar month, and furnished by every operator under sub

manner and within the period prescrib

of outward supplies iifurnished b

same calendar month or any

(7) Where the details of ou

declared by the operator un

details declared by the s

communicated to both pers

prescribed.

(8) The value of a supply relating to any payment

is communicated under sub

valid return for the month in which discrepancy is communicated shall be added to

the output liability of the said supplier, in the

calendar month succeeding the calendar month in which the discrepancy is

communicated.

(9) The concerned supplier shall, in whose output tax liability any amount has been

added under sub-section (8), be liable to pay t

along with interest, at the rate specified under sub

ollected on behalf of each supplier in respect of all supplies of goods and/or services



to the credit of the appropriate Government shall be deemed to be a payment of

behalf of the concerned supplier and the supplier shall claim credit, in his

, of the tax collected and reflected in the statement of the

section (4), in the manner prescribed.

(6) The details of supplies and the amount collected under sub-section (1) during a

calendar month, and furnished by every operator under sub-section (4), shall, in the

manner and within the period prescribed, be matched with the corresponding details

furnished by the concerned supplier in his valid return for the

calendar month or any preceding calendar month.

(7) Where the details of outward supply, on which the tax has been collected, as

declared by the operator under sub-section (4) do not match with the corresponding

details declared by the supplier under section 25, the discrepancy shall be

to both persons in the manner and within the time as may be

(8) The value of a supply relating to any payment in respect of which any discrepancy

is communicated under sub-section (7) and which is not rectified by the supplier in his


output liability of the said supplier, in the manner as may be prescribed, for the

month succeeding the calendar month in which the discrepancy is


section (8), be liable to pay the tax payable in respect of such supply

along with interest, at the rate specified under sub-section (1) of section 36 on the

goods and/or services



eemed to be a payment of

supplier shall claim credit, in his

, of the tax collected and reflected in the statement of the

section (1) during a

section (4), shall, in the

th the corresponding details

y the concerned supplier in his valid return for the

tward supply, on which the tax has been collected, as

with the corresponding

screpancy shall be

ons in the manner and within the time as may be

in respect of which any discrepancy

section (7) and which is not rectified by the supplier in his


be prescribed, for the

month succeeding the calendar month in which the discrepancy is


he tax payable in respect of such supply

section (1) of section 36 on the

amount so added from the date such tax was due till the date of its payment.

(10) Any authority not below the rank of Joint Com

before or during the course of any proceeding under this Act, require the operator to

furnish such details relating to

(a) supplies of goods and/or services 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

operators and declared as additional places

specified in the notice.

(11) Every operator on whom

furnish the required informati

notice.

(12) Any person who fails t

under sub-section (10) shall,

under section 66, be liable t

thousand.

Explanation— For the purposes of this section, the expression ‘concerned supp

shall mean the supplier of goods and/or services making supplies through the

operator.


(10) Any authority not below the rank of Joint Commissioner may, by notice, either


furnish such details relating to—


of goods held by the suppliers making supplies through such operator in


operators and declared as additional places of business by such suppliers

Every operator on whom a notice has been served under sub

furnish the required information within five working days of the date of service of such

(12) Any person who fails to furnish the information required by the notice serve

section (10) shall, without prejudice to any action that is or may be taken

under section 66, be liable to a penalty which may extend to rupees twenty

For the purposes of this section, the expression ‘concerned supp

mean the supplier of goods and/or services making supplies through the


missioner may, by notice, either



of goods held by the suppliers making supplies through such operator in


of business by such suppliers - as may be

a notice has been served under sub-section (10) shall

on within five working days of the date of service of such

o furnish the information required by the notice served

without prejudice to any action that is or may be taken

o a penalty which may extend to rupees twenty-five

For the purposes of this section, the expression ‘concerned supplier’

mean the supplier of goods and/or services making supplies through the

Thus the provisions of the Chapter XIB casted the onus on the Electronic

Commerce Operator:

1. To Collect tax

2. Deposit the collected amount

3. Furnish Statement

4. Comply with notice of deficiency

Every electronic commerce oper

of the amount payable or paid to t

At the earliest time of the following:

a. credit of any amount to the account of the supplier of goods and/or services or

b. payment of any amount in cash or by any ot

At such rate as may be notified in this behalf by the Central/State Government on

the recommendation of the Council.

TDS made under this provision of this Section is not reverse charge mechanism.


at the time of credit of any amount to the

account of the supplier of goods and/or

services or at the time of payment of any

amount in cash or by any other mode,

whichever is earlier

Deposit the collected amount within ten days after the end of the month

in which such collection is made

furnish a statement, electronically, of all

amounts collected under sub

towards outward supplies of goods and/or

services effected through it, during a

calendar month

of deficiency The operator will require to make

rectification in its next valid return or the

deficiency will be added to taxpayer’s

liabilities.

electronic commerce operator shall require to deduct/collect an amount, out

of the amount payable or paid to the supplier

the following:

of any amount to the account of the supplier of goods and/or services or

of any amount in cash or by any other mode

may be notified in this behalf by the Central/State Government on

of the Council.



at the time of credit of any amount to the

account of the supplier of goods and/or

at the time of payment of any

amount in cash or by any other mode,

within ten days after the end of the month

in which such collection is made

furnish a statement, electronically, of all

amounts collected under sub-section (1),

towards outward supplies of goods and/or

services effected through it, during a

The operator will require to make

rectification in its next valid return or the

deficiency will be added to taxpayer’s

shall require to deduct/collect an amount, out

of any amount to the account of the supplier of goods and/or services or

may be notified in this behalf by the Central/State Government on


The compliance burden on supplier is minimum;

and entitled to get the tax collected amount adjusted, however they will require

reconciling their liabilities with electronic ledger of concerned e

9. MISCELLANEOUS

a. Persons required collecting GST Only a GST-registered supplier

outward supplies of good or service made in

supplies. A person is a taxable person for GST purposes if he is or is liable to be

under the Goods and Services

Under Section 43C of Model

an amount, out of the amount p

rate as may be notified inn

recommendation of the Counc

Thus the Section 43C provides

collection shall bed prescribe

recommendation of the Council

collected by Supplier only, the liabilities of

TCS on the particular supply.

b. Supply of physical goods via the internet subject to GST If TATA sells Buses via the internet and the

in Punjab the movement starts from TATA Nagar, Jharkhand

IGST. TATA is not falls under the definition of e

not require to collect and deposit any TCS.

c. Goods/Services imported from a

compliance burden on supplier is minimum; they have to file their regular returns


reconciling their liabilities with electronic ledger of concerned e-commerce operators.

GST

supplier can charge and collect GSTs (SGST & CGST/IGST)

supplies of good or service made in India apart from exempt or zero

supplies. A person is a taxable person for GST purposes if he is or is liable to be

under the Goods and Services Laws.

Under Section 43C of Modelll GST Law, Electronic Commerce Operator

amount, out of the amount payable or paid to the supplier, calculated at such

n this behalf by the Central/State Government on the

of the Council.

Thus the Section 43C provides collection only of Tax deducted at source, the rate

prescribed by the Central/State Government on the

of the Council. Thus the applicable GSTs on supply shall be

collected by Supplier only, the liabilities of E-commerce operator shall only to collect

Supply of physical goods via the internet subject to GST

via the internet and the Buses are physically supplied to a customer

Punjab the movement starts from TATA Nagar, Jharkhand, the supply is subject to

TATA is not falls under the definition of e-commerce operator, therefore it has

lect and deposit any TCS.

imported from a foreign supplier through internet.

they have to file their regular returns


commerce operators.

s (SGST & CGST/IGST) on all

apart from exempt or zero-rated

supplies. A person is a taxable person for GST purposes if he is or is liable to be registered

Electronic Commerce Operator shall, collect

, calculated at such

Central/State Government on the

Tax deducted at source, the rate

the Central/State Government on the

applicable GSTs on supply shall be

commerce operator shall only to collect

are physically supplied to a customer

, the supply is subject to

commerce operator, therefore it has

A photo camera imported to produce a movie by way of booking on Amazon, UK. The

Camera shall be chargeable with

with IGST (CVD will be replaced with IGST

V = (1 +Tbcd)(1+Tigst)

V = Value of Import Goods

Tbcd = Rate of BCD

Tigst = Rate of integrated goods and service tax i.e., SGST+ CGST

In the proposed GST regime,

CVD (levied in lieu of Excise duty) and SAD (levied in lieu of (VAT)) will be absorbed into

IGST, yet, the following duties will not be

Basic Customs Duty, (ii) Anti-Dumpin

on Camera, if applicable.

Present Regime

Basic Customs Duty

Countervailing Duty

Special Additional Duty of Customs

Customs Cess

Other Additional Duties like Anti

Duty. Safeguard Duty etc.

d. GST treatment for digital products

1. Digital product refers to

outside the digital environment. Principally, digital product requires electronic

media as a form of delivery such as software, stream video, MP3, etc.


Camera shall be chargeable with Basic Custom Duty for the time being in force and

CVD will be replaced with IGST), as below:

Value of Import Goods

Rate of integrated goods and service tax i.e., SGST+ CGST

In the proposed GST regime, multiplicity of levies, in a manner of speaking, will ensue;


IGST, yet, the following duties will not be subsumed but, will continue to be levied: (i)

Dumping Duty, (iii) Safeguard Duties which shall be leviable

GST Regime

Basic Customs Duty

Special Additional Duty of Customs Integrated GST (IGST+SGST)

Other Additional Duties like Anti-Dumping

Other Additional Duties like Anti

Duty. Safeguard Duty etc.

GST treatment for digital products

Digital product refers to information-based products that never manifest itself




for the time being in force and

multiplicity of levies, in a manner of speaking, will ensue;


subsumed but, will continue to be levied: (i)

Duty, (iii) Safeguard Duties which shall be leviable

Integrated GST (IGST+SGST)

Other Additional Duties like Anti-Dumping

based products that never manifest itself



2. For GST purpose, supply of digital products over

of service.

3. If a taxpayers supplies

such as software or digital book to individual consumer or a business entity, it

be subject to GSTs

4. If digital products are sold via the internet and downloaded by an

customer it will be zero

“exported” otherwise GST must be charged.

5. Normally, when digital product is downloaded directly from a supplier via th

internet, it may be noted that the custo

signal and does not obtain the

digital product is inclusive of

of service.

For GST purpose, supply of digital products over the internet is deemed as supply

upplies digital product via the internet or other electronic media,

such as software or digital book to individual consumer or a business entity, it

are sold via the internet and downloaded by an

be zero-rated but it is important to prove that the products are

“exported” otherwise GST must be charged.

Normally, when digital product is downloaded directly from a supplier via th

internet, it may be noted that the customer acquires data in the form of a digital

signal and does not obtain the copyright. Nonetheless if the purchase of the

digital product is inclusive of its intellectual property, it is still regarded as supply

the internet is deemed as supply

digital product via the internet or other electronic media,

such as software or digital book to individual consumer or a business entity, it will

are sold via the internet and downloaded by an foreign

rated but it is important to prove that the products are

Normally, when digital product is downloaded directly from a supplier via the

mer acquires data in the form of a digital

copyright. Nonetheless if the purchase of the

its intellectual property, it is still regarded as supply

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