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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Kaveri Mart, an electronic commerce operator, has collected tax at source under section 52(1) on supplies made through it by registered supplier Ravi Traders during the month. Under rule 67 of the CGST Rules, what must Kaveri Mart do and how does Ravi Traders get the benefit of the amount collected?

Kaveri Mart must file FORM GSTR-8 electronically on the common portal. The tax collected details then become available to Ravi Traders on the portal, so it can claim the amount in its electronic cash ledger after validation, as rule 67 provides.

  1. AKaveri Mart files FORM GSTR-8 electronically; the details are then made available to Ravi Traders on the common portal for claiming the amount in its electronic cash ledger after validationCorrect
  2. BKaveri Mart files FORM GSTR-1 and Ravi Traders claims the amount in its electronic credit ledger directly
  3. CRavi Traders files FORM GSTR-8 on behalf of Kaveri Mart
  4. DKaveri Mart sends a physical statement to Ravi Traders, who claims a refund

Explanation

Rule 67 requires every operator required to collect tax at source under section 52 to furnish a statement in FORM GSTR-8 electronically, containing details of supplies and tax collected. The details are made available to each registered supplier on the common portal for claiming the amount in the electronic cash ledger after validation. Option B wrongly names the form and the credit ledger.

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