GST TCS For E-Commerce Operators

Home » Learn » GST in India » GST TCS For E-Commerce Operators

GST TCS For E-Commerce Operators

GST TCS or GST Tax Collection at Source is very similar to GST TDS or Tax Deduction at Source. The GST TCS is applicable for e-commerce operators, while GST TDS is applicable for government departments, local authorities and government agencies. This article elaborates on the relevant regulations of GST TDS for suppliers while making supply through e-commerce operators.

Applicability of GST TCS

Under GST, “electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Hence, e-commerce operators like Amazon, Flipkart, PayTM and other e-commerce companies operating in India should comply with the GST TCS provisions.

Click here to read on Section 194M – TDS

GST Registration for Tax Collection at Source (TCS)

GST registration is mandatory for both e-commerce operators and persons supplying goods or services through an e-commerce operator. The aggregate turnover criteria for determining a taxable person under GST does not apply for both e-commerce operators or persons supplying goods or services through an e-commerce operator. Hence, both types of taxable persons should mandatorily obtain GST registration before commencing the business.


GST TCS is applicable at the rate of 1% of taxable value. Hence, if the seller sells the product at Rs.1000 through an e-commerce operator like Amazon, the Amazon would deduct tax @ 1% of the net value of Rs.1000 i.e. Rs.10 and remit the same to the account of Government. Thus GST TCS applies on the net value of the goods or services supplied through the e-commerce operator.

Find the GST rate for all goods and services.

Credit for TCS

Once Tax Collected at Source (TCS), the e-commerce operator should deposit the amount in the Governments account and file GSTR-8 by the 10th of the following month. Once GSTR-8 is filed, the details are processed by the GST Portal and credit is provided to the supplier in the electronic cash ledger.

Liability of the Supplier for incorrect GSTR-8 filing

The details of the supplies, including the value of supplies, submitted by the e-commerce operator in GSTR-8 is matched with the GSTR-1 filing made by the supplier. In case of discrepancy, the GST Portal would highlight the issue to both the e-commerce operator and supplier. If the discrepancy is not rectified within the given time, then the amount would be added to the output tax liability of the supplier. The supplier will have to pay the differential amount of output tax along with interest. Hence, it is important for all suppliers to ensure that TCS statements are correctly filed by the e-commerce operator.

Filing GSTR-8 – TCS Statement

All the e-commerce operators shall file the GSTR-8 or TCS statement by the 10th of the following month. While filing the statement, TCS shall apply. If any error occurred while filing GSTR-8, the e-commerce operator can rectify before 30th September. In addition, the e-commerce operators should mandatorily file the Annual TCS Statement along with the monthly GSTR-8 filings by the 31st December of every financial year.

For startup ideas for business, click here.

Other Related Guides

TDS Rates for Assessment Year 2018-19 TDS Rates for Assessment Year 2018-19 In certain transactions, the person making payment is required to obtain TAN registration and deduct tax at sou...
Form 26Q Form 26Q - Income Tax Forms 26Q must be used to file TDS on salary payments and payments other than salary. Payers or deductors need to submit Form 2...
TDS on Salary for Financial Year 2020-2021 TDS on Salary for Financial Year 2020-2021 Central Board of Direct Taxation (CBDT) has released Circular No. 20/2020 dated 3rd December 2020, which e...
Explanatory notes to the provisions of the Finance... Explanatory notes to the provisions of the Finance Act, 2022 Central Board of Direct Taxes recently vides circular no. 23/2022 dated 3rd November 202...
TDS Form 24Q – TDS Return for Salary Payment TDS Form 24Q - TDS Return for Salary Payment According to Section 192 of the Income Tax Act 1961, an employer deducts TDS while paying salary to an e...

Post by IndiaFilings is committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price. Our aim is to educate the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant and continually growing.