CMA FINAL IDT Complete Revision TCS
TCS under GST
Statutory Section 52 of the CGST Act, 2017 – Tax Collection at Source
Provision Rule 67 of CGST Rules – Monthly Statement & Annual Statement
Who Is Required • Only E-commerce operators (ECO) who collect consideration on behalf of
to Collect TCS? suppliers making supplies through their platform must collect TCS.
(Section 52(1))
• Examples: Amazon, Flipkart, Swiggy, Zomato, Ola, Uber, etc.
TCS Rate
On What Value TCS is collected on the net value of taxable supplies made through the ECO.
Is TCS Net value = Taxable supplies – Returns (during the same month)
Collected?
When Is TCS to • At the time of making payment to the supplier.
Be Collected? • Even if the ECO allows COD, the ECO is considered to have collected
consideration when the amount comes into their system.
Deposit of TCS ECO must deposit TCS within 10 days after the end of the month in which collection is
made.
Returns/ (A) Monthly Statement – GSTR-8
Statements to • Filed by ECO by 10th of next month
Be Filed • Contains:
o Supplies through ECO
o TCS amount collected
o Returns related data
(B) Annual Statement – GSTR-9B
• To be filed by 31st December following the end of the financial year
Matching of Supplier’s outward supply reported in GSTR-1 is matched with ECO’s GSTR-8.
Supplies & TCS If mismatch → supplier is intimated.
If mismatch not rectified → supplier pays differential tax + interest.
Credit to TCS collected gets credited to the supplier’s Electronic Cash Ledger.
Supplier Supplier can use it for payment of tax, interest, fee, penalty.
Penalties & (A) Late payment of TCS
Interest • Interest payable under Section 50
(Section 52(6))
(B) Late filing of GSTR-8
• Late fee under Section 47 (₹100 CGST + ₹100 SGST per day)
Situations 1. When ECO does NOT collect consideration
Where TCS Is E.g., marketplace model where supplier collects money directly.
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CMA FINAL IDT Complete Revision TCS
NOT to Be (Section 52 applies only when ECO collects consideration)
Collected 2. On exempt or non-taxable supplies
TCS applies only on taxable supplies.
3. On supplies made by ECO on its own account
These are treated as normal outward supplies, not TCS transactions.
4. When supplier is unregistered
Because TCS credit is meant to be passed to registered suppliers.
5. On import of goods/services
Not covered under scope of Section 52.
6. On supplies where ECO is required to pay tax under Section 9(5)
If ECO is deemed supplier (hotel accommodation, certain passenger transport,
restaurant services via ECO etc.),
→ TCS not applicable because there is no supplier receiving consideration.
Foreign ECO Foreign e-commerce operator does not have place of business in India since they
operate from outside. But their supplier and customers are located in India. So, in this
scenario will the TCS provision be applicable to such e-commerce operator and if yes,
how will foreign e-commerce operator obtain registration?
Where registered supplier is supplying goods or services through a foreign e-commerce
operator to a customer in India, such foreign e-commerce operator would be liable to
collect TCS on such supply and would be required to obtain registration in each
State/UT. If the foreign e-commerce operator does not have physical presence in a
particular State / UT, he may appoint an agent on his behalf.
Separate Is it necessary for eCommerce operators who are already registered under GST and
Registration have GSTIN, to have separate registration for TCS as well?
E-Commerce operator has to obtain separate registration for TCS irrespective of the
fact whether e-Commerce operator is already registered under GST as a supplier or
otherwise and has GSTIN
Sales Returns Under Section 52, ecommerce operator collects TCS at the net of returns. Sometimes
sales return is more than sales and hence can negative amount be reported?
Negative amount cannot be declared. There will be no impact in next tax period also. In
other words, if returns are more than the supplies made during any tax period, the
same would be ignored in current as well as future tax period(s).
More than 1 Under multiple ecommerce model, Customer books a Hotel via ECO-1 who in turn is
ECO integrated with ECO-2 who has agreement with the hotelier. In this case, ECO-1 will
not have any GST information of the hotelier. Under such circumstances, which e-
commerce operator should be liable to collect TCS?
TCS is to be collected by that e-Commerce operator who is making payment to the
supplier for the particular supply happening through it, which is in this case will be ECO-
2.
Are there any As per section 52(12) of the CGST Act, 2017, any authority not below the rank of
additional Deputy Commissioner may serve a notice requiring the operator to furnish the details
powers of their supplies of goods or services or both as well as stock of goods held by the
available to tax suppliers within 15 working days of the date of service of such notice
officers under
this Act?
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CMA FINAL IDT Complete Revision TCS
Supply through Unregistered persons with aggregate turnover up to threshold limit permitted to supply
ECO by goods through an ECO. If so, exemption provided to such persons not liable to be
unregistered registered from the provision of mandatory registration even if they supply through
persons ECO under the following conditions:
He shall not make any inter-State supply of goods
He shall not make supply of goods through ECO in more than one State/UT
He shall declare his PAN, address of his place of business and the State/UT in which
he seeks to make such supply on the common portal before making any supply of
goods through ECO and the same shall be subjected to validation on the common
portal;
On successful validation of his PAN he shall be granted an enrolment number in a
State/UT
No supply shall be made by such persons through ECOs unless is granted an
enrolment number on the common portal
Once he is granted registration under GST Acts, the enrolment number shall become
invalid from the effective date of registration.
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CMA FINAL IDT Complete Revision TCS
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Discuss in brief the consequences of non-compliance of TCS provisions.
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