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CA Final · Indirect Tax Laws · Electronic Commerce Transactions

Under the CGST Rules, Orbit Mart, an e-commerce operator required to collect tax at source, has filed its statement of supplies for the month. Which statement correctly describes what follows?

The operator files FORM GSTR-8, and the tax collected details become available to each registered supplier on the common portal. The supplier then claims the amount in its electronic cash ledger after validation, not automatically in the credit ledger.

  1. AThe statement is in FORM GSTR-1 and is filed only by the suppliers
  2. BThe 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
  3. CThe collected amount is automatically credited to the supplier's electronic credit ledger without any validation
  4. DThe details are sent only to the jurisdictional officer and not to suppliers

Explanation

The operator furnishes FORM GSTR-8 electronically. The details of tax collected are made available to each registered supplier on the common portal, for claiming the amount in the electronic cash ledger after validation. Option C is wrong because the credit goes to the cash ledger, not the credit ledger, and after validation.

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