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56. Collection of tax at source

  1. Notwithstanding anything to the contrary contained in the Act, every electronic commerce operator (hereinafter referred to in this section as the “operator”), not being an agent, shall collect an amount calculated at the rate of one percent of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator.

    Explanation .- For the purposes of this sub-section, the expression "net value of taxable supplies" shall mean the aggregate value of taxable supplies of goods or services, other than services notified under sub-section (4) of section 8, made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
  2. The power to collect the amount specified in sub-section (1) shall be without prejudice to any other mode of recovery from the operator. The amount collected under sub-section (1) shall be paid to the account of the appropriate Government by the operator within ten days after the end of the month in which such collection is made in the manner as may be prescribed.
  3. Every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month.
  4. The supplier who has supplied the goods or services through the operator shall claim credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished under sub-section (4), in the manner prescribed.
  5. The details of supplies furnished by every operator under sub-section (4), shall, in the manner and within the period prescribed, be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under the Act.
  6. Where the details of outward supplies furnished by the operator under subsection (4) do not match with the corresponding details furnished by the supplier under section 32, the discrepancy shall be communicated to both persons in the manner and within the time as may be prescribed.
  7. The amount in respect of which any discrepancy is communicated under subsection (7) and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward Page 66 of 163 supplies furnished by the supplier, in the manner as may be prescribed, in his return for the month succeeding the month in which the discrepancy is communicated.
  8. The concerned supplier shall, in whose output tax liability any amount has been added under sub-section (8), be liable to pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 45 on the amount so added from the date such tax was due till the date of its payment.
  9. Any authority not below the rank of Joint Commissioner may serve a notice, either before or during the course of any proceeding under this Act, requiring the operator to furnish such details relating to—

    1. supplies of goods or services effected through such operator during any period, or
    2. stock of goods held by the suppliers making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operators and declared as additional places of business by such suppliers -
    as may be specified in the notice.
  10. Every operator on whom a notice has been served under sub-section (10) shall furnish the required information within fifteen working days of the date of service of such notice.
  11. Any person who fails to furnish the information required by the notice served under sub-section (10) shall, without prejudice to any action that is or may be taken under section 85 , be liable to a penalty which may extend to twenty-five thousand rupees.

    Explanation.—For the purposes of this section, the expression ‘concerned supplier’ shall mean the supplier of goods and/or services making supplies through the operator.
Utilization of the Fund Unavailed cenvat credit on capital goods, not carried forward in a return, to be allowed in certain situations Treatment of long term construction / works contracts Treatment of branch transfers Treatment of the amount recovered or refunded pursuant to revision of returns Treatment of the amount recovered or refunded in pursuance of assessment or adjudication proceedings Transitional provisions for availing Cenvat credit in certain cases Transfer of property to be void in certain cases Value of taxable supply Taxable person Taxability of supply of services in certain cases Tax wrongfully collected and deposited with the Central or a State Government Tax Return Preparers Tax paid on goods lying with agents to be allowed as credit Tax paid on capital goods lying with agents to be allowed as credit Tax not to be collected by unregistered taxable person Tax invoice Manner of distribution of credit by Input Service Distributor Manner of recovery of credit distributed in excess Tax deduction at source Tax collected but not deposited with the Central or a State Government Taxability of supply of goods in certain cases Taking input tax credit in respect of inputs sent for job work Taking assistance from an IT professional Time of supply of services Time of supply of goods Summary assessment in certain special cases Special procedure for removal of goods for certain purposes Special provision regarding liability to pay tax, interest or penalty in certain cases Special Procedure for certain processes Special audit Short title, extent and commencement Powers of SGST/CGST officers under the Act Service of notice in certain circumstances Semi-finished goods removed for job work and returned on or after the appointed day Self-Assessment Scrutiny of returns Rounding off of tax etc. Revocation of cancellation of registration Revisional powers of Chief Commissioner or Commissioner Matching, reversal and reclaim of reduction in output tax liability Matching, reversal and reclaim of input tax credit Returns Notice to return defaulters Repeal and saving Removal of difficulties Relevancy of statements under certain circumstances Registration Refund of tax Refund claims filed after the appointed day for payments received and tax deposited before the appointed day in respect of services not provided Refund claims filed after the appointed day for goods cleared or services provided before the appointed day and exported before or after the appointed day to be disposed of under earlier law Refund in certain cases Rectification of mistakes or errors apparent from record Rectification of Advance Ruling Recovery of Input Tax Credit and Interest thereon Recovery of tax Publication of rules and notifications and laying of rules before Parliament / State Legislature Publication of information respecting persons in certain cases Provision for transfer of unutilized Cenvat Credit by taxable person having centralized registration under the earlier law Provisional attachment to protect revenue in certain cases Provisional Assessment Prosecution Progressive or periodic supply of goods or services Procedure on receipt of application Power of inspection, search and seizure. Procedure of the Authority and the Appellate Authority Presumption as to documents in certain cases Presumption of culpable mental state Power to summon persons to give evidence and produce documents Power of inspection, search and seizure Power to impose penalty in certain cases Power to grant exemption from tax Power to collect statistics Power of Central (or State) Government to make rules Power of CAG to call for information for audit Power to arrest Persons discharging functions under the Act shall be deemed to be public servants Period of retention of accounts Pending refund claims to be disposed of under earlier law Penalty for failure to furnish information return Payment of tax, interest, penalty and other amounts Payment of tax and other amount in installments. Sums due to be paid notwithstanding appeal etc. Orders of Appellate Tribunal Orders of the Appellate Authority Officers required to assist CGST/SGST officers Powers of officers under the state Powers of officers under the Central Offences and penalties Offences by Companies and certain other persons Obligation to furnish information return Non Appealable decisions and orders Constitution of the National Appellate Tribunal Migration of existing taxpayers to GST Meaning and scope of supply Liability of partners of firm to pay tax Liability of guardians, trustees etc. Liability of directors of private company Liability of Court of Wards etc. Liability in case of company in liquidation Liability in case of transfer of business Liability in other cases Liability in case of amalgamation /merger of companies Liability of agent and principal Levy of late fee Levy of fees Levy and Collection of Central/State Goods and Services Tax Issue of supplementary invoices, debit or credit notes where price is revised in pursuance of a contract Interest on refund of pre-deposit interest on delayed payment of tax Interest on delayed refunds Instructions to gst officers Inspection of goods in movement Claim of input tax credit and provisional acceptance thereof Inputs removed for job work and returned on or after the appointed day Initiation of recovery proceedings Indemnity Hearing before Supreme Court Powers of sgst/cgst officers under the act gst compliance rating Goods sent on approval basis returned on or after the appointed day General provisions relating to determination of tax General provisions General power to make regulations General penalty General disciplines related to penalty Furnishing details of outward supplies Furnishing details of inward supplies First return Tax to be first charge on property Appeals to first appellate authority Finished goods removed for carrying out certain processes and returned on or after the appointed day Final return Finalization of proceedings relating to output duty or tax liability Exempted goods returned to the place of business on or after the appointed day Exclusion of time taken for copy Eligibility and conditions for taking input tax credit Effect of amendments, etc., of rules, notifications or orders Duty (Tax – in SGST Act) paid goods returned to the place of business on or after the appointed day Drawal of samples Disclosure of information required under section 141 Disclosure of information by a public servant Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willfulmisstatement or suppression of facts Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any wilful misstatement or suppression of facts Detention, seizure and release of goods and conveyances in transit Delegation of powers Definitions Deduction of tax source Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations Credit of eligible duties and taxes in respect of inputs held in stock to be allowed in certain situations Credit of eligible duties and taxes in respect of inputs or input services during transit Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme Credit distribution of service tax by ISD Credit and debit notes Continuation and validation of certain recovery proceedings Consumer welfare Fund Constitution of the Appellate Tribunal Confiscation or penalty not to interfere with other punishments Confiscation of goods and/or conveyances and levy of penalty Compounding of offence Composition levy Cognizance of offences Classes of officers under the state goods and services tax act Classes of officers under the central goods and services tax act Claim of cenvat credit to be disposed of under the earlier law Change in rate of tax in respect of supply of goods or services Special provisions relating to casual taxable person and non-resident taxable person Cancellation of registration Burden of proof Bar on recovery proceedings Bar of jurisdiction of civil courts Availability of credit in special circumstances Powers of the authority and appellate authority Authority for advance ruling Audit by tax authorities Assessment of unregistered persons Assessment proceedings, etc. not to be invalid on certain grounds Assessment of non-filers of returns Apportionment of credit and blocked credits Appointment of officers under the state goods and services tax act Appointment of officers under the state goods and services tax act Applicability of advance ruling Applicability of advance ruling Appellate authority for advance ruling Appearance by authorised representative Appeal to the supreme court Appeal to the high court Appeals to the appellate tribunal Appeal not to be filed in certain cases Appeal to the appellate authority Anti-profiteering measure Annual return Amount of tax to be indicated in tax invoice and other documents Amount of CENVAT credit carried forward in a return to be allowed as input tax credit Amendment of registration Definitions Advance Ruling to be void in certain circumstances Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence Accounts and other records Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence