GST TDS on E Commerce operator
This query is : Resolved
18 February 2020
here 1 my client has karnataka GST no but his material was in MP and he want to sell and ship his goods from MP state. we are facing a problem in TDS deduction under gst we have 2 separate GST registration for GST TDS in Both state. which State GST code is applicable for TDS deduction.
19 February 2020
GST TDS is to be deducted by the recipient of goods/services ( deductor )while making payment to the supplier.
Further, It is to be deducted by Government Agencies or specified deductor for a contract more than Rs. 2.50 lakhs
Further, It is to be deducted by Government Agencies or specified deductor for a contract more than Rs. 2.50 lakhs
27 February 2020
yes but my question is about place 1 the Operator need to registered them self in every state where they are operate but the vendor was registered with state but he is supply goods from other state which state GST TDS no is deduct the tax and why.
28 February 2020
Your query is not clear to me.
Whether your client is a contractor/supplier providing supplies to the Government Agency or he is the Govt Agency/ PSU etc who need to deduct GST TDS ?
Whether your client is a contractor/supplier providing supplies to the Government Agency or he is the Govt Agency/ PSU etc who need to deduct GST TDS ?
28 February 2020
madam i want to you that, e commerce operator want to deduct GST TDS but problem is that the vendor is registered in MP but his stock in Karnataka state and they are ship product from Karnataka, goods with vendors supplier
27 July 2024
In the scenario you described, there are two key aspects to consider for GST TDS (Tax Deducted at Source) when dealing with e-commerce operators and the issue of GST registration and TDS deduction in different states.
### **1. Understanding GST TDS in E-Commerce**
Under the GST regime, e-commerce operators are required to deduct TDS at a rate of 1% (0.5% CGST + 0.5% SGST) or 2% (IGST) on payments made to suppliers through their platform. This is applicable to both goods and services. The e-commerce operator must have GST registration in the state where they are operating, and they need to deduct GST TDS in that state.
### **2. GST TDS Applicability Based on State**
**Scenario:**
- **Client’s GST Registration:** Karnataka
- **Stock Location:** Madhya Pradesh (MP)
- **Shipping State:** Karnataka
### **Determining the State for GST TDS Deduction**
**GST TDS for E-Commerce Operators:**
1. **State of Registration of E-Commerce Operator:** The e-commerce operator must be registered in each state where they operate and deduct TDS accordingly. The operator’s GST registration determines the state where the TDS needs to be deposited.
2. **State of Supplier’s GST Registration:** In this case, your client (the supplier) is registered in Karnataka but has stock in MP and is shipping goods from MP to customers.
**Key Points:**
- **GST TDS by E-Commerce Operator:** The e-commerce operator must deduct TDS based on their GST registration state. Since the operator is likely registered in Karnataka (where the goods are shipped to customers), they should deduct TDS as per the Karnataka GST registration.
- **GST TDS on Goods Shipped from MP:** Although the supplier’s stock is in MP, the place of supply for goods, in this case, is Karnataka (since goods are being shipped from Karnataka). Therefore, the GST TDS should be deducted as per the state where the supply is deemed to be made.
### **Steps for TDS Deduction:**
1. **E-Commerce Operator’s Registration:** Ensure that the e-commerce operator is registered in Karnataka, where the final supply of goods is taking place.
2. **TDS Deduction:** The e-commerce operator in Karnataka will deduct GST TDS based on the Karnataka GST registration. The TDS will be at the rate applicable to the state where the goods are shipped (i.e., Karnataka), which will be IGST if the state of supply and the place of supply are different.
3. **TDS Reporting and Payment:** The TDS should be reported and paid in the state where the e-commerce operator is registered. The GST TDS deducted must be reflected in the GSTR-7 return filed by the e-commerce operator.
### **Summary:**
- **State for TDS Deduction:** The e-commerce operator should deduct GST TDS based on their GST registration state. In your case, since the operator is registered in Karnataka, TDS should be deducted under Karnataka GST.
- **GST TDS on Goods:** Deduct IGST if the place of supply and the location of the supplier are different, which is applicable in this case.
If there are any complexities or further issues, consulting with a GST professional or tax advisor familiar with GST TDS regulations and e-commerce transactions would be beneficial.
### **1. Understanding GST TDS in E-Commerce**
Under the GST regime, e-commerce operators are required to deduct TDS at a rate of 1% (0.5% CGST + 0.5% SGST) or 2% (IGST) on payments made to suppliers through their platform. This is applicable to both goods and services. The e-commerce operator must have GST registration in the state where they are operating, and they need to deduct GST TDS in that state.
### **2. GST TDS Applicability Based on State**
**Scenario:**
- **Client’s GST Registration:** Karnataka
- **Stock Location:** Madhya Pradesh (MP)
- **Shipping State:** Karnataka
### **Determining the State for GST TDS Deduction**
**GST TDS for E-Commerce Operators:**
1. **State of Registration of E-Commerce Operator:** The e-commerce operator must be registered in each state where they operate and deduct TDS accordingly. The operator’s GST registration determines the state where the TDS needs to be deposited.
2. **State of Supplier’s GST Registration:** In this case, your client (the supplier) is registered in Karnataka but has stock in MP and is shipping goods from MP to customers.
**Key Points:**
- **GST TDS by E-Commerce Operator:** The e-commerce operator must deduct TDS based on their GST registration state. Since the operator is likely registered in Karnataka (where the goods are shipped to customers), they should deduct TDS as per the Karnataka GST registration.
- **GST TDS on Goods Shipped from MP:** Although the supplier’s stock is in MP, the place of supply for goods, in this case, is Karnataka (since goods are being shipped from Karnataka). Therefore, the GST TDS should be deducted as per the state where the supply is deemed to be made.
### **Steps for TDS Deduction:**
1. **E-Commerce Operator’s Registration:** Ensure that the e-commerce operator is registered in Karnataka, where the final supply of goods is taking place.
2. **TDS Deduction:** The e-commerce operator in Karnataka will deduct GST TDS based on the Karnataka GST registration. The TDS will be at the rate applicable to the state where the goods are shipped (i.e., Karnataka), which will be IGST if the state of supply and the place of supply are different.
3. **TDS Reporting and Payment:** The TDS should be reported and paid in the state where the e-commerce operator is registered. The GST TDS deducted must be reflected in the GSTR-7 return filed by the e-commerce operator.
### **Summary:**
- **State for TDS Deduction:** The e-commerce operator should deduct GST TDS based on their GST registration state. In your case, since the operator is registered in Karnataka, TDS should be deducted under Karnataka GST.
- **GST TDS on Goods:** Deduct IGST if the place of supply and the location of the supplier are different, which is applicable in this case.
If there are any complexities or further issues, consulting with a GST professional or tax advisor familiar with GST TDS regulations and e-commerce transactions would be beneficial.
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