GST query: Vendors on e-commerce platforms get notices

GST query: Vendors on e-commerce platforms get notices

Hundreds of online vendors selling goods on e-commerce platforms like Amazon and Flipkart have received notices from the GST authorities to explain the differences in sales numbers reported by the e-commerce operators when they collected tax at source (TCS) and the sales reported by the sellers in their monthly return GST-3B. Large-scale evasion is suspected as taxpayers seem to have under-reported sales and paid lower taxes in self-declared returns.

The notices pertain to the October 2018 to September 2019 period. Taxpayers have asked to explain the mismatch within three days of receipt of notices. As FE had reported in December, the taxman had stumbled upon instances of huge discrepancies in taxable value brought out by two different modes of reporting.

“It is good that the system is detecting such fraud as such practices put undue pressure on honest and genuine sellers. We had supported the concept of TCS for online sellers precisely for this reason,” a vendor said, on condition of anonymity.

Under the GST system, sellers on e-commerce platforms, except those supplying services, are required to register on the GST Network, even if their turnover fall below the GST threshold of Rs 40 lakh per annum.