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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Kaveri Handlooms, a registered supplier in Karnataka, sells sarees through the portal of an e-commerce operator, Bharat Mart, which collects tax at source and files FORM GSTR-8. Kaveri wants to know how it gets the benefit of the tax collected. Which statement follows from Rule 67 of the CGST Rules?

Once the operator files FORM GSTR-8, the details of tax collected at source are made available electronically to Kaveri on the common portal. Kaveri can then claim the amount in its electronic cash ledger after validation, as Rule 67(2) provides. The operator, not the supplier, files GSTR-8.

  1. AThe details of tax collected are made available electronically to Kaveri on the common portal after GSTR-8 is filed, for claiming the amount in its electronic cash ledger after validationCorrect
  2. BKaveri must file a separate statement in FORM GSTR-8 to claim the amount
  3. CThe tax collected is credited to Kaveri's electronic credit ledger automatically on the date of collection
  4. DThe amount can be claimed only by the operator, not by the supplier

Explanation

Rule 67(2) says details of tax collected at source are made available electronically to each registered supplier on the common portal after the operator files GSTR-8, for claiming the amount in the supplier's electronic cash ledger after validation. GSTR-8 is filed by the operator, not the supplier, and the credit goes to the cash ledger rather than automatically to the credit ledger.

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