Tax Collected At Source Under GST

Tax collected at source is a mechanism under GST where the e-commerce operator collects tax on behalf of the supplier who sells goods/ services through online platform hosted by the operator.

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Applicability of TCS

TCS is applicable to all e-commerce operators who collect consideration on behalf of the supplier when he supplies goods/services through the e-commerce portal, except in certain cases are discussed below.

TCS not applicable to certain e-commerce operators providing the following goods/services:

1. Transactions which are out of scope of supply under GST
2. Transaction which are chargeable under RCM mechanism u/s 9(3) or 9(4)
3. Nil rated/exempt/non-taxable supplies
4. Services mentioned under sec 9(5) of the CGST Act:

  • Hotel accommodation/clubs (unregistered suppliers)
  • Transportation of passengers – radio taxi, motor cab or motorcycle
  • Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)

5. In cases where supplier of services is not liable to be registered under GST (i.e., Turnover is less than Rs.20 lakhs/ Rs.10 lakhs as applicable).

TCS Liability

TCS is to be collected @ 1% [1% IGST incase of intra state supplies/0.5% CGST & 0.5% SGST] on net value of taxable supplies of goods/services.

TCS Registration & Compliance

The e-commerce operator shall get registered under GST as TCS collector in all the states in which it operates.

Registration should be obtained as tax collector by submitting an application for new registration on GST portal- https://www.gst.gov.in.

Supplier who sells goods through e-commerce operator is also required to be compulsorily registered.

Supplier who renders services through e-commerce operator is required to get registered only if it crosses the turnover threshold for GST registration.

Setting up business

Private Limited company
Proprietorship
DIN
PAN
EPF

ROC Compliance

LLP ROC Compliance
OPC ROC Compliance
Company ROC Compliance
Closure of Private company
Closure of LLP

Direct tax compliance

Filing income tax returns
Chapter VIA deductions
Capital gains taxation
Taxation of business
NRI income

Indirect tax compliance

GST returns and due dates
Input tax credit claim
GST Refund
GST TCS
GST TDS

GST RefundGST-REFUNDSTAX-DEDUCTED-AT-SOURCE-UNDER-GSTGST TDS