What is TCS under GST?

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Sakshi Shah

E-Commerce Operator
E-Commerce Supplier
GST
TCS

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.
What is the impact of GST on an E-Commerce Operator?
Read impact of GST on E-Commerce Operator (E-Commerce Platform) - GST registration, TCS rate, payment of TCS & filing GSTR-8 on GST Portal
Read More
What is the impact of GST on an E-Commerce Operator?
Read impact of GST on E-Commerce Operator (E-Commerce Platform) - GST registration, TCS rate, payment of TCS & filing GSTR-8 on GST Portal
Read More

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
What is the impact of GST on an E-Commerce Supplier?
Read impact of GST on E-Commerce Seller - GST registration, TCS rate, payment of GST, ITC of TCS & filing GSTR-3B and GSTR-1 on GST Portal
Read More
What is the impact of GST on an E-Commerce Supplier?
Read impact of GST on E-Commerce Seller - GST registration, TCS rate, payment of GST, ITC of TCS & filing GSTR-3B and GSTR-1 on GST Portal
Read More

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.

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