{"id":14103,"date":"2020-07-31T12:06:58","date_gmt":"2020-07-31T06:36:58","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=14103"},"modified":"2021-01-22T15:50:24","modified_gmt":"2021-01-22T10:20:24","slug":"what-do-you-mean-by-tcs-under-gst","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/","title":{"rendered":"What do you mean by TCS under GST?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Tax Collected at Source (TCS) under GST states the tax collected by any e-commerce operative from the consideration established by it on behalf of the provider of goods or services who make materials through the operator\u2019s online stage. TCS can be charged as a proportion of the net taxable supplies of goods.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#Who_can_be_liable_to_collect_TCS_under_GST\" >Who can be liable to collect TCS under GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#What_is_the_rate_applicable_under_TCS\" >What is the rate applicable under TCS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#Registering_requirements_for_TCS_under_GST\" >Registering requirements for TCS under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#Which_form_can_be_used_to_file_TCS_return\" >Which form can be used to file TCS return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#Impact_of_the_TCS_provisions\" >Impact of the TCS provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/what-do-you-mean-by-tcs-under-gst\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_can_be_liable_to_collect_TCS_under_GST\"><\/span>Who can be liable to collect TCS under GST?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An individual operative who owns, operate, and manages the e-commerce platform are responsible for collecting TCS under GST. Tax Collected at Source is applicable only if the operatives collect the amount from the customers on behalf of vendors or dealers. When the e-commerce operators pay the compensation received to the sellers, they have to deduct an amount as TCS and then pay the remaining amount.<\/p>\n\n\n\n<p><em><strong>Few exceptions to the TCS requirements for the services provided by any e-commerce platform are as follows: <\/strong><\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"604\" height=\"344\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-145.png\" alt=\"Few exceptions to the TCS requirements for the services provided by any e-commerce platform\" class=\"wp-image-14104\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-145.png 604w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-145-300x171.png 300w\" sizes=\"(max-width: 604px) 100vw, 604px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">When the liability for collecting TCS under GST arises? <\/h3>\n\n\n\n<p>TCS has to be collected by e-commerce operatives while making a payment to the seller. This payment will be the consideration received on the retailer\u2019s behalf for the goods sold by him online. The tax will be collected on the net value of taxable supplies of goods.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_rate_applicable_under_TCS\"><\/span>What is the rate applicable under TCS?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The dealers or traders supplying goods and services through e-commerce operators will receive payment after the deduction of TCS at the rate 1%. This rate is informed by CBIC in Notification no. 52\/2018 <strong>under CGST Act<\/strong><sup><a href=\"http:\/\/gstcouncil.gov.in\/sites\/default\/files\/IGST.pdf\"><strong>[1]<\/strong><\/a><\/sup> and 02\/2018 under IGST Act. Which states &nbsp;for an intra-state supply of goods, TCS at 1% will be collected. Likewise, for a transaction between the states, the TCS rate will be @ 1%, i.e., under the IGST Act. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registering_requirements_for_TCS_under_GST\"><\/span>Registering requirements for TCS under GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ne-commerce operative liable to collect TCS have to register under GST\ncompulsorily, and there is no beginning limit exception\nfor it. Similarly, the sellers supplying goods online of any e-commerce platform\nare compulsorily required to get registered under GST except for a few\nexceptions.<\/p>\n\n\n\n<p><strong>Registration conditions are as follows:&nbsp; <\/strong><\/p>\n\n\n\n<ul><li>Every e-commerce operative who\nis obligatory to collect TCS must be registered under GST;<\/li><li>Any person who supply goods\nthrough any e-commerce platform, but those who make supplies are informed under\nsection 9 (5) of CGST Act.<\/li><\/ul>\n\n\n\n<p>Under Section 9 (5) mentions the following supply of services \u2013 Transporting passengers by a radio-taxi and motorcycle OR providing accommodation in hotels, guest houses, for residential or lodging purposes (unregistered suppliers) OR services of house-keeping, such as a plumber, carpenter, etc. ( or any unregistered supplies of services). In all cases, the e-commerce operative should pay GST, meet the agreements. So, suppliers don\u2019t have to register if they provide these services listed in 9 (5), provided they do not cross the INR 20 Lakhs beginning for registration.<\/p>\n\n\n\n<ul><li>Suppliers of services making a supply through any e-commerce portal are exempted from <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>registration under GST<\/strong><\/a> if their aggregate turnover is less than INR 20 Lakhs (assuming they do not make inter-state supplies of services).<\/li><li>Suppliers of goods supplying through any e-commerce portal are not exempted from registration under GST.<\/li><li>Any e-commerce company must register itself under GST in every state it provides products or services.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Due date for depositing TCS<\/h3>\n\n\n\n<p>TCS will be deducted in the month in which the supply is completed. It has to be deposited within 10 days from the end of the month of the amount to the credits of the governments. Compensation of the tax collected will be made in the following manner:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"560\" height=\"254\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-146.png\" alt=\"Due date for depositing TCS\" class=\"wp-image-14105\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-146.png 560w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/07\/image-146-300x136.png 300w\" sizes=\"(max-width: 560px) 100vw, 560px\" \/><\/figure><\/div>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-gst-registration-for-service-tax-holder\/\">A Complete Overview on GST Registration for Service Tax Holder<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Which_form_can_be_used_to_file_TCS_return\"><\/span>Which form can be used to file TCS return?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>E-commerce operatives have to file GSTR-8 by the 10th of the next month in which the tax is to be collected. This return will only be submitted once the tax collector has deposited the respective credit to the government. For example, the due date for GSTR-8 for September 2019 will 10th October 2019.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Using GSTR-8 data by e-commerce suppliers in GSTR-2A<\/h3>\n\n\n\n<p>The details that are submitted by the operatives in GSTR 8\nwill be accessible to all the suppliers in GSTR 2A. The goods will be accessible\nto GSTR 2A after the due date of filing of GSTR-8. The tax collected will be replicated\nin the electronic cash ledger of the respective dealers. The contractors can\nclaim the credit consequently after matching and reconciliation their supplies of\nservices with the details given in GSTR 2A. <\/p>\n\n\n\n<p>GSTR 8 cannot be reviewed once it is filed. Any inconsistency found while matching and reconciliation of the supply data and GSTR 2A will be linked to the operator and the supplier of services. If the difference is not corrected within the given period of time, then the tax amount will be further added to the liability of the supplier of services. The supplier of services will have to pay the difference amount along with interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_the_TCS_provisions\"><\/span>Impact of the TCS provisions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From\nthe e-commerce operator\u2019s viewpoint, they must register under GST in every\nstate in which they operate before 01st October 2018,\nwhich is the operative date of executing TCS provisions. The ERP schemes have\nto be well combined to apply these provisions in the day to day businesses. Additionally,\nthe working capital of the suppliers selling through an e-commerce operator\nwill be blocked until they file their return and claim the excess taxes paid.\nThis can prevent SMEs vendors from selling goods or supplying services on the\nonline portal.<\/p>\n\n\n\n<p>From the government\u2019s viewpoint, tax evasion will\nsignificantly reduce since the tax will be collected at every transaction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the GST law, the e-commerce operators are not allowed\nto get TCS registration in some States\/UTs, where they do not have any physical\npresence, and this became a challenge to few taxpayers.<\/p>\n\n\n\n<p>To overcome this challenge, from 01st April 2020 onwards, the e-commerce operators not having a physical presence in any particular state\/UT has been allowed to apply for TCS registration based on their registered head office\/premises address.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/eligibility-criteria-for-gst-registration-india\/\">\nA Complete Guide on Eligibility Criteria for GST Registration\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax Collected at Source (TCS) under GST states the tax collected by any e-commerce operative from the consideration established by it on behalf of the provider of goods or services who make materials through the operator\u2019s online stage. TCS can be charged as a proportion of the net taxable supplies of goods. Who can be [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":14107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[826],"acf":{"service_id":"68"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":6706,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14103"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=14103"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14103\/revisions"}],"predecessor-version":[{"id":24735,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/14103\/revisions\/24735"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/14107"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=14103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=14103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=14103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}