TAXKATEACHER - CA KARAN SHETH

ALL ADJUSTMENT OF ECO 8879-727-727

CGST ACT CHARGING SECTION

Sec. 9(5)

A. Transportation of passengers by Radio Taxis, Rickshaw, Metered Taxis & Any other Motor vehicle excluding omnibus

Tax to be paid by ECO

B. Transportation of passenger Service by omnibus
i) Supplier = Other than Company  ECO ii) Supplier = Company  Company

C. 1. Hotel accommodation service 2. House keeping service

(i) If supplier is registered  Supplier
(ii) If supplier is not registered  ECO

D. Restaurant Service
If Restaurant (RP or URP) Supply service through ECO ECO u/s 9(5)
If Restaurant is situated in a Hotel having declared tariff
of more than `7500/day & supplies such service through ECO Restaurant u/s 9(1)

ECO has physical presence ECO itself

ECO does not have physical presence Representative of ECO
ECO doesn’t have physical presence nor has reprentative Person appointed by ECO

Situation Person Liable to pay tax

Shiv Sagar Restaurant, a registered person in GST Zomato u/s 9(5)
is supplying service through Zomato, an ECO
Status Restaurant, an unregistered person Swiggy u/s 9/5)
supplying service through Swiggy, an ECO
Masala Kraft, a restaurant in Hotel Decent where the declared Zomato u/s 9(5)
tariff is 2500/day supplies service through Zomato, ECO
Shamiana, a restaurant in Taj Hotel where the declared tariff Shamiana u/s 9(1)
is 1,00,000/day supplies service through Zomato, ECO Restaurant
Neeta Travels Pvt ltd is supplying transportation of passenger Neeta Travels Pvt Itd u/s 9(1)
service in an omnibus through REDBUS app.
Eagle Travels, a partnership firm is providing transportation GOIBIBO, an ECO u/s 9(5)
of passenger ger service in an omnibus through GOIBIBO app

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 TAXKATEACHER - CA KARAN SHETH
8879-727-727

TCS

ECO
Every ECO not being an agent who goods & collects consideration on behalf of supplier
from customer on net value of taxable supplies made through it by suppliers has
been mandated to collect TCS.

E.g. OLX is an agent as consideration is not routed through him to supplier and
hence it is not covered u/s 52

Provisional
Collect TCS @1% on ‘net Assessment
value of taxable’ supplies and deposit by 10th of
next month

Rs. 1,18,000
Rs. 99,000 + Rs. 18,000

ECO
Sale of goods Recipient
SP =  1,00,000
+GST @18% = 18,000
1,18,000
GST = 18,000 payable

Amount of Rs. 1000 shall be reflected

in E-Cash Ledger of ‘Nike’

Net Value of taxable supplies:

Add: Aggregate value of taxable supplies of G/S [Other than those notified u/s 9(5)]
Less: Taxable supplies returned to suppliers

Cases where TCS is not collected

 Supplies on which tax is payable as per RCM.
 Import of goods/service.
 Supplies on which Goods/Services are Exempt.

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 TAXKATEACHER - CA KARAN SHETH
8879-727-727

CGST @ 0.5%
Intra:-
SGST@ 0.5%
Rate of TCS = 1%
Inter:- IGST@ 1%

Due date of TCS = 10th of next month following the month in which such supplies
takes place.

Delay in Depositing TCS = Interest @ 18% p.a.

Return = Form No:- GSTR-8

Late fees on filing delayed return:

Rs. 100/ day
Or W.I.L.
5,000

Due date of filing Annual Statement = 31st December of next FY.

Notice to ECO

Deputy Send Notice

ECO
Commissioner
G /Sr.
m e of
Volu
Furnish details Stoc ECO shall furnish details
k of
lying good within 15 working days.
s
in go
dow
n
Fails to Penalty
furnish u/s 122
info (+)
Penalty upto
25,000

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 TAXKATEACHER - CA KARAN SHETH
8879-727-727

REGISTRATION

Person supplying
Through ECO who
deducts TCS u/s 51
ECO
Goods Service
Intra-state Interstate o/s ambit Who collects
TCS u/s 52
o/s Sec 24 Covered u/s 24 of sec 24
Compulsory Compulsory Register
Registration is Register is only Eg.
not required required after it Flipkart, ECO required
u/s 24 exceeds
For this, the TCS u/s 52, C/R = 
Supplier & 20L/10L OLX, ECO is not
ECO have required to collect
to follow TCS u/s 52, C/R = 
procedure

Unregistered persons who are supplying goods, through ECO (TCS u/s 52)

Not required to obtain Compulsory Registration u/s 24

Subject to following conditions

i) not make any inter-State supply of goods;
ii) not make supply of goods through ECO in more than one State/Union territory;
iii) PAN
(iv) such persons shall, before making any supply of goods through ECO, declare on the common
portal:
a. their PAN b. address of POB
c. State/UT in which such persons seek to make such supply,
which shall be subjected to validation on the common portal;
(v) He is granted enrolment number on the common portal
(vi) not be granted more than one enrolment number
(vii) no supply of goods shall be made by such persons through ECO unless such persons have been
granted an enrolment number on the common portal

A special procedure has been followed by ECO through which above unregistered persons
supply goods

(i) ECO shall allow the supply of goods through it by the said person only if enrolment number has
been allotted on the common portal to the said person;
(ii) ECO shall not allow inter-state supply of goods through it by the said person
(iii) ECO shall not collect TCS u/s 52(1).
(iv) ECO shall furnish the details of supplies of goods made through it by the said person in Form
GSTR-8

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 TAXKATEACHER - CA KARAN SHETH
8879-727-727

COMPOSITION SCHEME
Sec 10(2) - [All these restriction are to be followed in CFY as Composition scheme shall be opted in CFY]
• Supply of service other than restaurant should not exceed: 10% x T/o in PFY or 5L, w.i.h
• not supply goods & service that are not leviable to tax (ie Alcoholic liquor, 5 Petroleum Products)
• not engaged in inter-state outward supplies of goods/service
• not engaged in goods*/service supplied through e-commerce operator

Compo Taxpayer

Supplies Goods within Supplies Goods Outside Supplies service through ECO
state through ECO state through ECO (within/outside state)

Continue to pay tax as Opt out of compo Opt out of compo

per compo scheme scheme scheme
Special procedure to be followed by ECO through which composition supplier supplies goods
The composition suppliers are permitted to make supply of goods through such ECOs.
Composition suppliers are yet not permitted to supply service through ECO.
i) Not allow any inter-State supply of goods
ii) The ECO shall collect TCS u/s 52(1) in respect of supply of goods made through it
iii) The ECO shall furnish the details of supplies of goods made through it by the said person in
the statement in Form GSTR-8 electronically on the common portal.

OFFENCES AND PENALTIES

Section 122(1B)

If ECO permits unregistered person to make inter-state supply through it

or
fails to furnish correct details in Form GSTR-8 with respect to any outward
supply of goods through it by an uneegistered person who is exempted from
registration

Penalty = `10,000
or
100% x Tax involved W.I.Higher
(if the supply had been made by
registered person under normal scheme)

RETURNS
TCS Deductor u/s 52
Form No. GSTR-8
Due Date : 10th of next month

Rectification of any omission / incorrect

particulars shall be allowed by
= 30th November foll.
the end of FY
w.i.e.
or
Actual date of filing Annual
Statement

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