Know all about Tax Collected at Source (TCS) for e-commerce sector in GST

Last udpated: Oct. 8, 2018, 10:48 p.m.

TCS mechanism under GST is applicable from 01 Oct 2018.

Section 52 of the CGST Act, 2017 deals with the provisions of TCS mechanism under GST. It states that every e-commerce operator, other than an agent,shall collect an amount of tax @ notified by the Government, not exceeding 1%,of the net value of taxable supplies made through it by other suppliers where the consideration w.r.t. such supplies is to be collected by the operator.

Now, the term “net value of taxable supplies” = The aggregate value of taxable supplies, except the ones mentioned in Sec. 9(5), made during any month by all registered persons through the operator (-) the aggregate value of taxable supplies returned to the suppliers during that month.

In short : TCS will be deducted from Base Value of the order (Base value = Order value - GST Tax value - Seller share if any ).

Example: Suppose you are selling a product worth Rs 100. GST is 10% for the product. Your share as an offer is Rs 5.

You will be able to claim TCS deducted on GST Portal if TCS is over and above your output tax liability for a given month.

Moreover, vide Notfn. No.: 52/2018 – CT and 02/2018 – IT, the Govt. has notified that the tax shall be collected at source @

  • 0.5% in the case of intra-state supplies (+ 0.5% for State Government) or
  • 1% in the case of inter-state supplies.

The tax collected by the e-commerce operator shall be paid to the Government by the 10th day of the next month.

The supplier of goods/ services, who supplied through the e-commerce operator, shall claim the credit of this TCS in his e-Cash Ledger.

Posted by Hetal Kukadiya under GST

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