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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Nilgiri Spices, a registered supplier, sells goods through the portal of MarketHub Ltd, an electronic commerce operator required to collect tax at source under section 52. MarketHub files its statement in FORM GSTR-8. As per Rule 67 of the CGST Rules, what follows from the filing of GSTR-8?

After the operator files GSTR-8, the details of tax collected at source are made available electronically to each registered supplier on the common portal. The supplier can then claim the amount in its electronic cash ledger after validation, not in the credit ledger.

  1. AThe details of tax collected are made available electronically to each registered supplier on the common portal, for claiming the amount in the electronic cash ledger after validationCorrect
  2. BThe tax collected is automatically credited to the supplier's electronic credit ledger
  3. CThe supplier must separately file GSTR-8 for the same supplies
  4. DThe details are made available only to the jurisdictional officer and not to the supplier

Explanation

Rule 67(2) provides 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 GSTR-8 is filed, for claiming the amount in the electronic cash ledger after validation. The credit goes to the cash ledger, not the credit ledger, so the credit-ledger option is wrong.

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