Who Is Liable To Pay GST In Case Of E-Commerce Portal?

MCQ SELF CHALLENGE #0090

Person Liable To Pay Gst In Case Of Accommodation Through E-Commerce Portal

Dear Professional Seniors & Friends.,

Warm Greetings!

Welcome once gain to the most waited #MCQ challenge on concept-based practical professional knowledge on Persons liable to pay GST in case of accommodation through the E-Commerce Portal in a unique manner to be self-answered by participants. Our tax consultant in gurgaon will post the detailed answers to these MCQs on the next day for the self-assessment of the participants

MCQ 90.1: Mr. Sanjay provided Hotel and lodging Services via Make My Trip, an e-commerce portal, Mr. Pramod is billed for Rs 10.000 for his stay in the hotel. Mr. Sanjay's turnover during the previous year was Rs 10 Lakhs. Who is required to depose GST under CGST Act, 2017?

A. Make my Trip

B. Mr. Sanjay

C. Mr. Pramod under Reverse Charge Mechanism

D. None of the above

MCQ 90.2: Is Mr. Sanjay liable to take registration in the above question?

A. Yes as the person providing services through ECD is not able to take registration.

B. No as his turnover does not exceed Rs 20 Lakhs

C. No, as in this case liability to pay tax is of ECO & turnover does not exceed Rs 20 Lakhs.

D. None of the above

Answer MCQ Self Challenge #0090

This post of MCQ is on provisions relating to time of supply under GST in case of a change in the rate of tax

Answer MCQ 90,1:

A) Make my Trip

Practical Analysis for MCQ 90,1:

• A person is liable for payment of CGST in case of Services provided by him having turnover exceeding Rs 20 lakh (Rs 10 lakh per annum) and thus required for registration under 22(1) of CGST Act, 2017,
• Notification No. 17/2017-Central Tax (Rate), has been issued making ECOS table for payment of GST in case of accommodation services provided in hotels, inns guest houses, or other commercial places meant for residential or lodging purposes provided by a person having turnover below Rs 20 lakhs (Rs 10 lakhs in special category states) per annum.

Based on the above analysis Correct Answer to MCQ 90.1 : A)Make My Trip

Answer MCQ 90.2:

C) No, as in this case liability to pay tax is of ECO & turnover does not exceed Rs 20 Lakhs

Practical Analysis for MCQ 90.2:

• Section 24 of the CGST Act lists cases of mandatory registration
• Entry no. 9 of that section provides that the person providing services through ECO is mandatorily required to take registration
• But as discussed in the first question, in cases where the turnover of person providing accommodation services is less than Rs 20 Lakhs liability to pay tax has been shifted to ECO's vide Notification No 17/2017.
• Now the situation exists where a provision of the Act and a notification contradicts
• In this regard Circular No. 27/2016 has been issued to clarify the issue that such persons whose turnover is less than Rs 20 lakhs even though they provide services through ECO, are not required to take registration in view of section 24(x) of CGST Act, 2017.

Based on the above analysis. Correct Answer to MCQ 90.2: C) No, as in this case ability to pay tax is of ECO & turnover does not exceeds RS 20 Lakhs

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as a professional opinion; you can definitely have your own opinion.)

Sincere Regards!

CA Sanjay Kumar Agrawal

Mobile: 9810116321