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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Kiran Handicrafts, a registered supplier in Jaipur, sells goods through Bazaarly, an e-commerce operator that files FORM GSTR-8 for October. Kiran wants to claim the tax collected at source by Bazaarly on its supplies. As per the Rules, how does Kiran get credit for the amount?

The TCS details filed by Bazaarly in FORM GSTR-8 are made available electronically to Kiran on the common portal. After validation, Kiran claims the amount in its electronic cash ledger, as provided in rule 67(2).

  1. AThe details furnished by the operator are made available electronically to the registered supplier on the common portal after the filing of GSTR-8, for claiming the amount in its electronic cash ledger after validationCorrect
  2. BKiran claims the amount directly in the electronic credit ledger by self-declaration without any details
  3. CBazaarly refunds the amount to Kiran by a manual cheque
  4. DThe amount lapses unless Kiran files a refund application

Explanation

Rule 67(2) states that the details of tax collected at source furnished by the operator are made available electronically to each registered supplier on the common portal after filing of GSTR-8, for claiming the amount in the electronic cash ledger after validation. The cash ledger, not the credit ledger, is the destination, so option B is wrong.

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