The deferred TCS provisions has now become applicable w.e.f. 01st October 2018 and we aim to discuss how is it going to impact the E-commerce sector, what would they need to do as E-commerce operator and seller registered on E-commerce platforms. TCS under GST refers to tax collected by the electronic commerce operator like Amazon, Flipkart etc. on supply of goods or services through its portal and the payment for that supply is collected by the electronic commerce operator.
E-commerce Operators are online selling platforms like Amazon, Flipkart etc. which displays on their portal products as well as services which are supplied by some other person i.e. the sellers registered on these platforms to the consumer. When an order is placed by the consumer, the E-commerce operators collects the payment from consumers and remits the amount to Sellers after reducing their charges.
With TCS coming into effect, the E-commerce Operators would be required to collect the GST at the rate of 1% on the net value of goods/services supplied through e-commerce portal.
Any amount deducted as TCS and reported in GSTR 8 will automatically reflect in the electronic cash ledger of the seller. The supplier can take this amount as credit in his electronic cash register and use the same for payment of tax or any other liability.
(The author is a CA in practice at Delhi and can be contacted at: E-mail: firstname.lastname@example.org, Mobile: +91-9811741451)