Electronic Commerce Operator (Operator) as every person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also a person providing any information or any other services incidental to or in connection with such supply of goods and services through electronic platform would be considered as an Operator. Ex- Flipkart, Amazon are facilitating actual suppliers to supply goods through their platform.

         A person supplying goods/services on his own account are not considered as operator like Titan supplying watches and jewels through its own website would not be considered as operator.

1.      As per sec 37 of Model GST Law, where Govt and Govt undertakings and other notified entities making payments in excess of Rs 10 Lakhs to suppliers , the concerned Govt/authority shall deduct 1% of the total amount payable as TDS and remit into appropriate GST account.

       THRESHOLD LIMIT

     The Threshold Limit for Exemption is Rs 20 Lakhs (Rs 10 Lakhs for North Eastern States and Sikkim) except the cases of 

     a) Inter State supplies or  

     b) paying taxes on Reverse Charge basis shall not be eligible to claim threshold          exemption.

Why Constitution of India is Amended?

Recently Constitution of India is amended because previously Centre has the power to tax on manufacture of goods(Excise Duty), rendering of services(Service Tax) while state has power to levy tax on sale of goods(VAT) .In case of Inter State,  Centre has the power to levy but tax is collected and retained entirely by State. Now with Introduction of GST amendment in Constitution is required to empower both Centre and State to levy and collect GST.

      “ Aggregate Turnover” means value of all supplies (taxable supplies + Exports ) and it excludes Taxes levied under CGST Act, SGST Act and IGST Act, Value of Inward supplies  + Value of supplies taxable under reverse charge of a person having same PAN.

      As per Revised GST Law, Non Taxable Turnover is excluded from Aggregate Turnover.

s    

     

     1.Casual Taxable Person means a person who occasionally undertakes transactions in a taxable territory where he has no fixed place of business.

     2.Non Resident Taxable Person means taxable person residing outside India and coming to India occasionally undertake transaction in the country but has no fixed place of business in India.

       Cases where Registration is Compulsory irrespective of threshold limit:

v  Persons making any Inter State Taxable supply

v  Casual taxable persons

v  Persons who are required to pay tax under Reverse Charge

v  Non Resident Taxable Persons

v  Persons who are required to deduct tax under sec 37

v  Persons who supply goods and/or services on behalf of other registered taxable persons whether as agent or otherwise

v  Input service distributor

v  Persons who supply goods and/or services other than branded services through electronic commerce operator

v  Every electronic commerce operator

v  An aggregator who supply services under his brand name or his trade name and

v  Such other persons or class of persons as may be notified by the Central Govt or a State Govt on the recommendations of the council.

  Composition Scheme

Ø Small Taxpayers with an aggregate Turnover up to Rs 50 Lakhs shall be eligible for composition scheme.

Ø Under the Scheme taxpayer shall not get the benefit of input tax credit.

Ø The floor rate shall not be less than 1%

Ø Taxpayer opting for composition scheme shall not collect tax from customers.

Ø Tax payers making interstate supplies or paying tax on reverse charge shall not be eligible for composition scheme. 

                                         Comparison of Federal VAT Systems

Nature of VAT	Country Examples	Disadvantages
Independent VATs at Centre and States	Brazil, Russia, Argentina	Differences in base and rates weaken administration and compliance. Inter-state transactions difficult to manage.
VAT levied and administered at Centre	Australia, Germany, Austria, Switzerland, etc.	State government relieved of responsibility of raising taxes which also takes away fiscal discretion of States
Dual VAT	Canada and India today	A combination of the above two and hence limits both their disadvantages
“Clean” dual VAT	India’s GST	Common base and common or similar rates facilitate administration and compliance, including for Integrated-state transactions, while continuing to provide some fiscal autonomy to States

            Commodities outside the purview of GST :

·         Alcohol for Human Consumption

·         Petroleum Products like petroleum crude, motor spirit, high speed diesel

·         Natural Gas

·         Aviation Turbine Fuel

·         Electricity

Securities (As per Revised GST Model Law)

Ø  These commodities are taxed under the existing system

             Tobacco and Tobacco products are subject to GST.

          A) Taxes Currently Levied by Centre which are subsumed under the GST:

ü  Central Excise Duty

ü  Duties of Excise (Medicinal and Toilet Preparations)

ü  Additional Duties of Excise (Goods of Special Importance)

ü  Additional Duties of Excise (Textiles and Textile Products)

ü  Additional Duties of Customs (Commonly known as CVD)

ü  Special Additional Duty of Customs (SAD)

ü  Service Tax

ü  Central Surcharges and Cesses so far as they relate to supply of goods and services

 B)  Taxes Currently Levied by State which are subsumed under the GST:

ü  State VAT

ü  Central Sales Tax

ü  Luxury Tax

ü  Entry Tax (all forms)

ü  Entertainment and Amusement Tax (except when levied by the local bodies)

ü  Taxes on advertisements

ü  Purchase Tax

ü  Taxes on lotteries, betting and gambling

ü  State Surcharges and Cesses so far as they relate to supply of goods and services