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What is TCS under GST?

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Sakshi Shah

E-Commerce Operator
E-Commerce Supplier
GST
TCS
Last updated on April 23rd, 2021

TCS under GST i.e. Tax Collected at Source became applicable from 1st October 2018. Here is a brief explanation on TCS:

  1. Provisions of TCS are applicable to e-commerce operators.
  2. E-commerce operator is any person who owns and operates a digital platform to run the e-commerce business.
  3. E-commerce suppliers are the persons selling their goods or services using the e-commerce portal.
  4. Payment received from customers for such goods or services is collected by the e-commerce operator.
  5. E-commerce operator is liable to collect TCS @1% on the payment made to e-commerce suppliers. Thus, In the case of Inter-State Sale, IGST should be charged at 1%. In case of Intra-State Sale, CGST (0.5%) and SGST (0.5%) should be charged.

Example – TCS GST

Mr.X is a registered supplier on Amazon India. He sells goods of Rs.50,000 online to Mr.Y through Amazon for which it charges a 2% commission. Amazon collects the payment from Mr.Y. How will the provisions of TCS be attracted in this case?

Solution

TCS provisions are not applicable if following services are provided by e-commerce platform:

  1. Housekeeping services like plumbing, carpenting etc
  2. Accommodation services by hotels, inns, clubs, guest house etc
  3. Passenger transportation services by radio-taxi, motor cab, motorcycle etc

FAQs

Is TCS under GST same as TCS under Income Tax?

No. TCS under GST and under Income Tax are different.

* TCS under Income Tax is collected by the seller from buyer on sale of specified goods at specified rates. Seller should file Form 27EQ on TRACES.
* TCS under GST should be collected by e-commerce operator from e-commerce seller on e-commerce sales at 1%. E-Commerce Operator should file GSTR-8 on GST Portal

In how many days should e-commerce operator deposit TCS with the GST Department?

The e-commerce operator should collect TCS from e-commerce supplier at 1%. TCS should be deposited with the GST Department on GST Portal within 10 days from the end of the month in which TCS was collected.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Goods/sectors that are out of the GST ambit include alcohol and specified petroleum products like petroleum crude, high-speed diesel, motor spirit, aviation turbine fuel and natural gas. Alcohol for human consumption continues to attract state excise duty and VAT. Tobacco and tobacco-based products attract both excise duty and GST. Taxes such as stamp duty, toll tax, road tax, electricity duty etc. are not part of GST.

    Hope this helps!

  2. Hey @HarishMehta

    Customs duty and cess as applicable along with IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

    Hope this helps!

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