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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Kaveri Handlooms, a registered supplier in Chennai, sells sarees through the portal of Zenith Bazaar Pvt Ltd, which collects tax at source. Zenith has filed its FORM GSTR-8 for the month. Kaveri wants to know how it gets credit for the tax collected from its payments. As per Rule 67, what happens?

After the operator files FORM GSTR-8, the details of tax collected are made available electronically to the registered supplier on the common portal. The supplier then claims the amount in its electronic cash ledger after validation. It is not credited automatically to the credit ledger.

  1. AKaveri must file a separate claim with the jurisdictional officer in writing
  2. BThe details are made available electronically to Kaveri on the common portal, and it can claim the amount in its electronic cash ledger after validationCorrect
  3. CThe tax collected is automatically credited to Kaveri's electronic credit ledger without validation
  4. DKaveri must wait for the operator to issue a credit note for the amount

Explanation

Rule 67(2) provides that details of tax collected are made available electronically to each registered supplier on the common portal after GSTR-8 is filed, for claiming the amount in the electronic cash ledger after validation. Option C is wrong because the credit goes to the cash ledger, not the credit ledger, and only after validation.

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