TCS under GST for E-Commerce Operators in India: A Quick Guide

The rapid growth of e-commerce in India has prompted a detailed regulatory framework under GST. Section
52 of the CGST Act, 2017 deals with Tax Collected at Source (TCS) by e-commerce operators (ECOs).

TCS under GST - An Overview

Under Section 52 of the CGST Act:
"Every e-commerce operator (ECO), not being an agent, is required to collect TCS at the notified rate from
the suppliers making taxable supplies through it."

TCS Rate: 1% (0.5% CGST + 0.5% SGST) or 1% IGST
Applicable on the net value of taxable supplies (gross supplies minus returns)

GST Returns for E-commerce

E-commerce Operators:

• GSTR-8 (monthly return) by 10th of next month.

Suppliers:

• GSTR-1 and GSTR-3B.
• TCS credit auto-populates in GSTR-2A and 2B.

Registration Requirements

E-commerce Operators:

• Mandatory registration irrespective of turnover.

Suppliers:

• Mandatory registration under Sec 24(ix), even if turnover is below threshold.

FAQs

Q1. Is TCS applicable on exempt supplies?
A: No, only on taxable supplies.

Q2. Is TCS applicable if payment is collected by seller?
A: No, only if collected by ECO.

Q3. Can supplier claim TCS amount?
A: Yes, it's reflected in cash ledger.

Q4. Is TCS applicable on exports?
A: No, exports are zero-rated.

Q5. What if supplies are returned?
A: TCS is on net value after returns.

Key Compliance Points

• Accurate data on suppliers and supplies
• Timely GSTR-8 filing
• Reconciliation with GSTR-2A
• Mandatory registration as per Sec 24

Conclusion

Compliance with TCS and return provisions is vital for ECOs and sellers. Stay updated with latest CBIC
notifications and circulars.