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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Orbit Marketplace Ltd, an e-commerce operator required to collect tax at source, has filed its statement in FORM GSTR-8 for the month showing tax collected from supplies made by Meera Traders, a registered supplier on its platform. As per Rule 67 of the CGST Rules, 2017, what happens to the details of tax collected in respect of Meera Traders?

The details are made available electronically to Meera Traders on the common portal after the operator files FORM GSTR-8. Meera can then claim the tax collected in its electronic cash ledger after validation, not in the electronic credit ledger.

  1. AThey are mailed to Meera Traders by the operator and need no portal action
  2. BThey are made available electronically to Meera Traders on the common portal after filing of FORM GSTR-8, for claiming the tax collected in its electronic cash ledger after validationCorrect
  3. CThey are credited automatically to Meera's electronic credit ledger without validation
  4. DThey are made available only to the jurisdictional officer and not to the supplier

Explanation

Rule 67(2) says 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 supplier's electronic cash ledger after validation. The credit goes to the cash ledger, not the credit ledger, so option C is wrong.

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