Table 3.1.1 of GSTR-3B for e-commerce transactions under 9(5) of CGST Act

As per the CGST notification 14/2022 dated 5th July 2022, a new table 3.1.1 has been added in GSTR-3B. Both the electronic commerce operators (ECO) and the registered persons supplying online must report such sales made under Section 9(5) of the CGST Act, 2017.

Introduction to Table 3.1.1 of GSTR-3B

The new table 3.1.1 has been inserted to allow taxpayers, both e-commerce operators and e-commerce sellers, to report the sales and tax payable for the same period. As per section 9(5) of CGST Act, 2017, an electronic commerce operator needs to pay tax on the supply of specific services notified by the government, such as: 

• accommodation services, 
• passenger transport services, 
• restaurant services, and
• housekeeping services. 

Where such services are supplied through the electronic commerce operator. The electronic commerce operator needs to declare supplies made under section 9(5) in the new table 3.1.1(i) of GSTR-3B and should not include those supplies in table 3.1(a) of GSTR-3B. The Electronic Commerce Operator must pay the tax applicable on such supplies in cash only and not via Input Tax Credit (ITC).

Also, any registered person who makes supplies as specified u/s 9(5)  through an Electronic Commerce Operator needs to report the supplies in Table 3.1.1(ii) and shouldn’t include such supplies in Table 3.1(a) of GSTR-3B. The registered person has to pay the tax applicable on such supplies in cash only and not via input tax credit (ITC).

Who must report details in Table 3.1.1 of GSTR-3B

Listed below are the assessees that need to report the details in table 3.1.1 of GSTR-3B:

• An Electronic Commerce Operator needs to pay tax on the supply of specific services notified by the government such as Accommodation services, passenger transport services, restaurant services and housekeeping services in case such services are supplied by the Electronic Commerce Operator such as Swiggy, Zomato, Ola, Urbancompany, etc.
• Any registered person who makes the above supplies as specified u/s 9(5) through an Electronic Commerce Operator must report the supplies. Example: restaurants listed on Swiggy.

Date of applicability of Table 3.1.1 of GSTR-3B

The new table 3.1.1 in GSTR-3B would be made available on the GST Portal from the 1st of August 2022. The changes would apply to GSTR-3B returns from the month of July 2022 going forward filed from August 2022. All of these changes are presently live on the GST portal.

Format of Table 3.1.1 of GSTR-3B

Below is the format to report supplies in the new table 3.1.1 in GSTR-3B:

Impact due to changes on e-commerce operators and e-commerce suppliers

Online sellers often faced issues related to the reconciliation of sales on e-commerce platforms as some of the values added in table 3.1.1 wasn’t mandatory to be reported separately in GSTR-3B. Also, some e-commerce operators were wrongly utilising input tax credits to discharge such tax liability. Hence, these details would be tracked and monitored independently for better compliance and reporting.

The e-commerce operators and e-tailers now need separate sales for accounts for the providing services, as mentioned earlier, to comply with the changes brought in by the notification. 

The Indian Government has started ramping up scrutiny and tightening the payment of tax liability for better vigilance; e-commerce operators and e-tailers are required to ensure enhanced reporting and better compliance management.

The e-commerce operators and e-tailers now need real-time ERP updates for sales, as any discrepancy or error could lead to penalties, interest, and litigation.