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TCS & TCS return under GST
52 OF CGST ACT deals with Tax Collection at source (TCS) which is made effective from
TCS refers to the tax
collected by electronic commerce operator when supplier supplies goods or
services through portal and the payment for that supply is collected by the E
Eg: Flipkart, Amazon
which sells products through their website and consideration is collected by
E-commerce operators after retaining commission and balance is paid to
Before covering the
details, let us visit the definition clause:
As per 2(45) of CGST act “electronic commerce operator” means
any person who owns,operates, or manages digital or electronic facility or
platform for electronic commerce.
Mr. A is a supplier selling
his own products through a website hosted by him. As per the definition Mr.A
will come under the definition of an electronic commerce operator. However
according to section 52,TCS required to be collected on the net value of
taxable supplies made through it by other suppliers where consideration charged
by ECO.In Case where someone is selling their own products through a website,
there is no requirement to collect at source as per the provisions.
As per 2(44) “electronic” commerce means the supply of
goods or services or both, including digital products over digital or
operator shall collect TCS at a rate not exceeding 1% on the net value of
taxable supplies made through it by other suppliers where the consideration to
such supplies is to be collected by the operator.
If there is returning of supplies to suppliers,
then the same shall be reduced from gross value, TCS shall be worked on such
net figure(after such reduction).
The amount collected
so shall be paid to the central/state government respectively within 10 days
after the end of the month in which such collection is made.
- As per 24(x) of CGST act every Electronic
commerce operator is mandatorily required to take GST registration.
- Persons making supplies of services, other
than supplies specified u/s9(5),through an ECO who is required to collect TCS
u/s 52 and having aggregate turnover, not exceeding 20 lakhs in a financial
year is exempted from obtaining registration.(Notification No.65/2017-CT dated
above notification only services are covered if person supplies goods through
an ECO is to mandatorily obtain GST registration
- E-Commerce operator shall furnish details of
outward supplies of goods or services or both made through it, including the
supplies returned through it and the amount collected by it in form GSTR-8
within the days after the end of month in which supplies are made.
- The details of TCS return furnished by ECO u/s
52 in FORM GSTR-8 shall be made available to the supplier in PART D OF FORM
- Sec 52(5) of CGST act requires filing of the
annual statement by ECO on or before 31st December following the year.
Due date for filing of TCS return has been extended for the
month of October, November, December is extended up to 31/01/2019
- The amount of tax collected is reflected in
electronic cash ledger of supplier since the related monthly return is filed by
- Any mismatch between the data submitted by ECO
in his monthly returns and that of suppliers making supplies through him shall
cause due mismatch enquiry from proper officer and either party may rectify the
Latest revised FAQ on TCS:
1) Whether TCS is required to be collected by e-commerce
operators on supply of services by unregistered suppliers through their portal?
As per Section 24(ix)
of the CGST Act, 2017, every person supplying goods or services through an
ecommerce operator is mandatorily required to register. However, vide
Notification 65/2017-Central Tax dated 15th November, 2017 a person supplying
services, other than supplier of services under section 9 (5) of the CGST Act,
2017, through an e-commerce platform were exempted from obtaining compulsory
registration provided their aggregate turnover does not exceed INR 20 lakhs (or
INR 10 lakhs in case of specified special category States) in a financial year.
Since such suppliers are not liable for registration, e-commerce operators are
not required to collect TCS on supply of services being made by such suppliers
through their portal.
2) Whether e-Commerce operator is required to obtain
registration in every State/UT in which suppliers listed on their e-commerce
platform are located to undertake the necessary compliance as mandated under
It may be noted that
each State/UT has indicated one administrative jurisdiction where all
e-commerce operators having business (but not having physical presence) in that
State/UT shall register. The proper officer for the purpose of registration of
ECOs has also been notified by each State/UT
3) Certain e-commerce operators who have been unable to obtain
registration in the month of October, 2018 but have already collected TCS for
the said month have expressed challenges in relation to the filing of such
details in GTSR-8. It has been asked as to details how these are to be
furnished on the common portal?
who have been unable to obtain registration in the month of October, 2018 but
have already collected TCS for the said month, may furnish the details of TCS
collected in the month of October, 2018 in the first return in FORM GTSR-8 to
be filed after obtaining registration