GST TCS - Tax Collected at Source

GST TCS For E-Commerce Operators

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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. GST TCS is applicable for e-commerce operators, while GST TDS is applicable for government departments, local authorities and government agencies. Though, normal taxpayers are not required to comply with TCS provisions, we look at GST TDS in detail, so that suppliers making supply through ecommerce operators are aware of the relevant regulations.

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, etc., operating in India would be required to comply with the GST TCS provisions.

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 are required to obtain GST registration prior to commencing business.


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

Find GST rate for all goods and services.

Credit for TCS

Once tax is collected at source (TCS), the e-commerce operator is required to 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.

Supplier can be liable 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, its important for all suppliers to ensure that TCS statements are correctly filed by the e-commerce operator.

Filing GSTR-8 – TCS Statement

GSTR-8 or TCS Statement must be filed by all e-commerce operators by the 10th of the following month, during which the TCS collection is made. In case of any error in GSTR-8 filing, rectification can be filed by the e-commerce operator before 30th September. In addition to monthly GSTR-8 filings, all e-commerce operators are also required to file an Annual TCS Statement by the 31st December of every financial year.

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