Ques: 856: The startup intends to provide an online platform where vendors can register and clients can select their services. Example, one Dance Academy has registered on our site, and a consumer wishes to identify a Dance Academy near his location. Our website assists people in finding a nearby Dance academy in their area. Customers will pay for registration at the dancing academy through our website. We charged customers extra convenience fees in addition to academy enrollment costs.We will pay the Dance Academy after deducting a certain proportion of the commission charges from the revenue received from clients.Does e-commerce activity cover the startup and must obtain GST registration before starting an e-commerce business, or will it be covered solely by e-business?How do I charge GST from customers? It will be levied on the price, including vendor services, or our convenience fees only.
Does the vendor need to raise the Invoice to us for his service or directly to customers?

Ans: In GST, you are working as E-commerce operator. Being an E-comm operator you are required to deduct TCS from vendor payment and to take registration in all states where vendors are located.GST will apply on convince fee charged from customer as well as commission charged from vendor.Vendor will charge GST on services provided to end customer.GST provisions w.r.t. E-commerce business are little complex, therefore it is advisable to thoroughly map business model with GST provisions.

Ques: 855: PLEASE ADVISE HOW TO REPLY TO DRC-01 :- WHERE A DEALER HAS TREATED CREDIT NOTE RECEIVED FROM BUYER IN RESPECT OF SALE RETURN AS PURCHASE AND INCREASED THE INPUT INSTEAD OF REDUCING OUTPUT TAX AS THE OUTPUT TAX WAS BECOMING NEGATIVE AND GSTR-3B WAS NOT ACCEPTING NEGATIVE FIGURE DURING THE YEAR 2019-20

Ans: As per Section 34 of the CGST Act, 2017, the Supplier is required to issue Credit note in respect of supplies made by them where the goods supplied are returned by the recipient.  Further, such Supplier is also required to report such Credit note in the GST returns.Accordingly, in the present case, the dealer is required to raise Credit note and report such Credit note in the GST returns.  However, in case value of such Credit note is greater than the value of output invoices for the particular period, in such a situation, the dealer is required to report such Credit note in the GST returns in the month wherein outward invoices are greater than the value of Credit note.

Ques: 854 : If a Tax Payer is registered in GST under Restaurent Services and Charging GST @ 5%. Now, my query is that if it starts to add Icecream in its menu, whether it should charge GST under Restaurent Services @ 5% or seperate GST @ 18% is to be charged on Ice Cream sale.

Ans: It should form part of restaurant services and accordingly GST @ 5% will apply.