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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Lotus Online Ltd, an e-commerce operator, collects tax at source on supplies made through its platform and files FORM GSTR-8 for the month. As per Rule 67 of the CGST Rules, 2017, what happens to the details of tax collected at source furnished in this statement?

The details are made available electronically on the common portal to each registered supplier after FORM GSTR-8 is filed. The supplier can then claim the amount of tax collected in its electronic cash ledger after validation, as Rule 67(2) provides. They are not credited to the credit ledger automatically.

  1. AThey are made available electronically to each registered supplier on the common portal after filing of FORM GSTR-8, so that the supplier can claim the amount in the electronic cash ledger after validationCorrect
  2. BThey are sent by the operator to each supplier by post within the same month, and the supplier claims credit in the electronic credit ledger
  3. CThey are made available only to the jurisdictional officer, and suppliers must apply for refund of the amount
  4. DThey are automatically credited to the electronic credit ledger of the supplier without validation

Explanation

Rule 67(2) provides that the details furnished by the operator are made available electronically to each registered supplier on the common portal after filing of FORM GSTR-8, for claiming the amount of tax collected in the electronic cash ledger after validation. The credit goes to the cash ledger, not the credit ledger, and validation is required, so the other options are wrong.

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