GSTR 1- New tables inserted for E-Commerce Operators

GSTN periodically makes changes in the return filing process to facilitate smoother compliance. A recent example of such a modification pertains to GSTR-1, effective from January 2024.

Two new tables have been added in GSTR-1, namely Table 14 and Table 15. These tables are relevant for those taxpayers who supply through E-Commerce operators and to the E-Commerce operators liable to pay tax under Section 9(5) of the CGST Act.

Impact on GSTR 3B

A new table 3.1.1 was added in GSTR-3B from 1st August 2022, where E-Commerce operators and E-commerce sellers can report supplies made under Section 9(5) of CGST Act. There was no means to get this table auto-populated on the basis of filed GSTR-1.

The insertion of new tables 14 and 15 in GSTR-1 will ensure auto-population of Table 3.1.1 in GSTR3B. This will further streamline the process of reporting E-commerce outward supplies and tax payable on the same.

A brief about E-Commerce operator under GST

An E-Commerce operator refers to any person or entity that owns, operates, or manages a digital platform that facilitates the supply of goods or services between suppliers and customers.

The liability of an E-Commerce operator to pay GST arises under the following circumstances:

• E-Commerce Operators are required to collect Tax Collected at Source (TCS) at a prescribed rate on the consideration received by sellers from customers. (Section 52 of CGST Act)
• Supply of goods and services happen between supplier and buyer using an E-commerce platform for which the E-Commerce operator charges commission on which GST is applicable.
• The E-Commerce operators are required to pay tax under reverse charge as per Section 9(5) of the CGST Act, regardless of whether the supplier is registered under GST.

Introducing Table 14 and 15 in GSTR 1

Table 14- Supplies made through E-Commerce operators

This table is used to report the outward supplies that are made by taxpayers through an E-Commerce operator.
Table 14 is divided into two parts.

Table 14 (a)- Supplies made through E-Commerce operators – u/s 52 (TCS)

• In this table, taxpayer has to report ECO-GSTIN wise summary of the supplies that they have made through E-Commerce operators. These are the supplies on which the E-Commerce operator is liable to collect TCS under Section 52.
• The taxpayer has to report the supplies in this section, which are already reported in Table 4 to 10 of GSTR-1
• The taxable value and tax liabilities from this table will not be auto-populated in GSTR 3B.

Table 14 (b)- Supplies made through E-Commerce operators – u/s 9(5)

• In this table, taxpayer has to report supplies net of debit/credit notes that they have made through E-Commerce operators. These are the supplies on which the E-Commerce operator is liable to pay tax under Section 9(5) of CGST Act.
• The values reported in this table will be auto-populated in Table 3.1.1(ii) of GSTR-3B.

The taxpayer has to report the details like GSTIN of E-Commerce operator, Trade name/Legal name, net value of supplies, IGST, CGST, SGST and Cess in Table 14.

Table 15- Supplies under Section 9(5)

Table 15 is used by E-Commerce operators to report the outward supplies on which the E-Commerce operator is liable to pay tax on reverse charge basis under Section 9(5) of CGST Act. These supplies shall not be reported anywhere else in GSTR-1/IFF.

The taxable value along with tax liabilities filled in this table shall be auto-populated in Table 3.1.1(i) of GSTR 3B.

Table 15 is divided into four parts based on the type of supplier and recipient.

A. Registered supplier to registered recipient-

This section requires reporting of supplies at invoice level where both supplier and receiver are registered. In this case, debit note/credit note is to be reported in Table 9B of GSTR-1. This section is also available in IFF.

B. Registered supplier to unregistered recipient-

This section is to be reported by the E-Commerce operator at supplier level along with POS and GST rate and the recipient in this case will be unregistered. This is to be reported net of credit/debit notes.
This section will not be available in IFF.

C. Unregistered supplier to registered recipient-

This section is to be reported at document level along with GSTIN of the recipient. In this case, debit note/credit note is to be reported in Table 9B of GSTR-1. This section is also available in IFF.

D. Unregistered supplier to unregistered recipient-

This section is to be reported by E-Commerce operators, based on POS and GST rate, and also net of credit/debit notes. It will not be available in IFF.

GSTN Advisory for newly introduced tables.

Auto-population of E-invoice

As per the Advisory issued by GSTN on 15th January, 2024, there will be no auto-population of e-invoice in Table -15. E-invoices reported for supplies u/s 9(5) will be populated in GSTR-1 as per the existing functionality.

E-Commerce operators are advised to examine and add the records which are related to supplies u/s 9(5) in Table 15.

New table added in GSTR 2B- “ECO-Documents”

The advisory further states that tax payers are being provided a facility to pass ITC to registered recipients receiving supplies through E-Commerce operator u /s 9(5).

A new table will be added in GSTR-2B under All Other ITC section named ECO-Documents. In this table, the registered recipient can view the document details of the supplies received through E-Commerce operators on which E-Commerce operator is liable to pay tax under section 9(5) of the Act.

The values will be auto populated from B2B and URP2B section of table 15 of GSTR-1 to this new ECO- Documents table of GSTR-2B.

Conclusion :

As the E-commerce sector continues to expand, there is an increasing demand to simplify and standardize the regulatory requirements for both E-commerce operators and sellers.

The introduction of dedicated tables in GSTR-1 for E-commerce transactions signifies a crucial advancement in improving the efficiency of the return filing process. It will help auto-populate some tables in GSTR-3B and ITC from such supplies will be reflected in GSTR-2B in a separate table.

This modification will not just simplify compliance for taxpayers but also enable the government to monitor online transactions and foster transparency.