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Calculation Of Net Proceeds and Net GST Liability Ecommerce

Others 632 views 1 replies

Here Is a Scenario

Customer Invoice Amount = 197 Which Includes 18% GST
Flipkart Commission = 25.61
Flipkart Fixed Fee = 5.00
TCS Deducted By Flipkart = 0.83
TDS Deducted By Flipkart  = 0.17
GST On Flipkart Commission and Flipkart Fixed Fee - (4.61+ 0.90) = 5.51    
Settlement Value to Sellers Bank Account = 159.88

Input Tax Credits That will be received are as follows - 

TCS Deducted By Flipkart = 0.83
TDS Deducted By Flipkart  = 0.17
GST On Flipkart Commission and Flipkart Fixed Fee - (4.61+ 0.90) = 5.51

Which Of the following Approaches is correct ?

A  - Net Proceeds  = Invoice Amount  197 - GST PAID On Invoice   30.05 - Flipkart Commission 25.61
- Flipkart Fixe Fee  - 5 -TCS 0.83 - TDS 0.17 - GST On Flipkart Commission and Fixed Fee 5.51
 + Input Tax Credit 6.51 (0.83+0.17+5.51)  = 136.34

B - Net Proceeds  = Settlement Value 159.88 - Gst On Settlement Value (159 - (159/1.18) 24.38
 + Input Tax Credit 6.51 (0.83+0.17+5.51)   = 142.01

Replies (1)

As per Section 9(5) of cgst act 2017, Specified Service Provider through E-Commerece Operator  are covered and Taxed accordingly such as FCM OR RCM. 

As per section 194-O of income tax act 1961, E-commerce operator is required to deduct TDS @ 0.1% while making payment to E-commerce participant.

Since Net proceeds received by the seller who make sales through e-commerce operator will be as follows.

Invoice amount - GST on Invoice amt - E commerce operator commission - Platform fees - TCS u/s 52 or 9(5) of cgst act - TDS u/s 194-0 - GST on E-commerce operator platform fee & on Commission amount.


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