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When must an e-commerce operator collect tax at source under section 52 of the CGST Act, 2017?

Question and options

When must an e-commerce operator collect tax at source under section 52 of the CGST Act, 2017?

  1. On exempt supplies made through it by other suppliers, where it collects the consideration

  2. On taxable supplies made through it by other suppliers, where it collects the consideration

  3. On taxable supplies listed on it by other suppliers, where buyers pay the suppliers directly

  4. On taxable supplies it makes on its own account through its own platform

Answer and explanation

Correct answer: B - On taxable supplies made through it by other suppliers, where it collects the consideration

Section 52(1) of the CGST Act requires an e-commerce operator to collect tax on the net value of taxable supplies made through it by other suppliers, where the consideration for those supplies is to be collected by the operator. Its own supplies are not within section 52, nor are supplies paid for directly to the supplier or exempt supplies.

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