Raizada Operators Limited (ROL) is registered under GST in the State of Karnataka as an Electronic Commerce Operator (ECO). It owns and operates a…
CA Final · Indirect Tax Laws · MTP · January 2026
Raizada Operators Limited (ROL) is registered under GST in the State of Karnataka as an Electronic Commerce Operator (ECO). It owns and operates a web portal which supplies various goods and services on behalf of various sellers/service providers to its ultimate customers. Details of supplies undertaken through ROL in the month of October are as under: (i) Sale of goods worth - 1,47,500/- (including GST) by ABC Ltd., registered supplier of Rajasthan to BMC Ltd., Gujarat. Also, goods worth taxable value of 1,40,000 sold by ABC Ltd., Rajasthan to BMC Ltd., Gujarat in the month of September were returned back in the month of October. (ii) Value of services provided from 21st October to 30th October by way of transportation of passengers by motor vehicles by Suzen Ltd., registered under GST in Karnataka to Zian Ltd., registered under GST in Karnataka amounting to 5,50,000/- (it includes - 1,50,000 against transportation services provided by omnibus). (iii) Miss Sachi of Mumbai books a room for 3 days and 2 nights in Ashoka Palace, Jodhpur, Rajasthan through Maheshmati Resorts Ltd. (MRL), also an ECO registered under GST in Karnataka. MRL is integrated with ROL who has an agreement with Ashoka Palace. Ashoka Palace is registered under GST in Rajasthan and raises an invoice for 1,50,000 to Miss Sachi and receives - 1,45,000 from ROL for the same. All the figures given above are exclusive of GST except wherever specified separately. Assume rate of CGST and SGST to be 9% each and IGST to be 18% on all inward and outward supplies of goods and services. Compute the amount of TCS to be collected by ROL for the month of October. Working notes should form part of your answer. (5 Marks)
Suggested Answer and Working Notes:
(i) Net value of taxable supplies = 1,25,000 (₹ 1,47,500× 100/118) - 1,40,000 = Nil / (Negative Value) Thus, TCS to be collected is Nil. (ii) ROL is liable to collect TCS, since the tax on services, by way of transportation of passengers by an omnibus provided by a company through ECO, is not payable by ECO, under section 9 (5) of the CGST Act, 2017. = 1,50,000 × 0.25% = 375 each under CGST and SGST ROL is not required to collect TCS on transportation of passenger services by other motor vehicles supplied through it worth - 4,00,000 as tax on the same is payable by ROL itself under section 9 (5) of the CGST Act, 2017. (iii) ROL, being supplier side ECO is liable to collect TCS @ 0.25% under CGST and 0.25% under SGST of the net value of intra-State taxable supplies of accommodation services made through it by Ashoka Palace. = 1,50,000 × 0.25% = 375 each under CGST and SGST
Topics: Payment of Tax
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