Impact of TCS in GST |

Impact of TCS in GST India

Impact of TCS in GST

The Government has deferred the provisions of Tax deducted at Source (TDS) and Tax Collected at Source (TCS) under GST earlier. Recently the government has notified October 1st, 2018 as the date of implementation.

GST authorities issued a notification dated Sep 13th, 2018 making effective date of TCS provision for #eCommerce Sector from Oct 1st, 2018. Rate of #TCS notified on Sep 20th, 2018 @ 1% (0.50% CGST & 0.50% SGST)

Impact of TCS in GST India
Impact of TCS in GST India

Persons required to collect Tax at Source

Every Electronic Commerce Operator (ECO) is required to collect Tax at Source from the net value of taxable supplies made through it by other Suppliers

Rate of TCS

Whenever the Electronic Commerce Operator collects the Consideration on behalf of the supplier, it should collect tax @ 2% on the net value of Taxable Supplies.

Deposit of TCS by ECO to government

The ECO should remit the TCS collected to the government within 10 days after the end of month in which collection was made.

For example, If TCS is collected in the month of September, the amount should be remitted on or before 10th October

Monthly Returns and Annual returns

GSTR 8: The electronic commerce operator should furnish the return in GSTR 8 electronically. It should contain the details of Outward supplies of goods or services, return of goods or services and the amount collected by it as TCS. GSTR 8 should be filed within 10 days after the end of each month in which sales are made.

Annual Return: The E Commerce operator should file the Annual return on or before 31st day of December following the end of the financial year

Claim of TCS credit

Suppliers can claim the credit of the TCS amount in his electronic cash ledger. This amount will be reflected in the monthly statement filed by e-commerce operator.

Rectification of Monthly Returns by E-Commerce operator

If the e-commerce operator discovers any discrepancy on his own, he can rectify the statement filed. The time limit for filing rectification is earlier of the two:

  1. Due date for filing statement for the month of September following the end of the financial year
  2. Actual date of furnishing of relevant annual statement


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