IGST: E-commerce Operator TCS collection rate reduced to 0.50%

CBIC notifies vide Notification No. 01/2024-Integrated Tax Dated: 10th July, 2024 that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of half per cent. with effect from 10th July instead of earlier rate of one per cent. of the net value of inter-State taxable supplies made through it by other suppliers where consideration with respect to such supplies is to be collected by the said operator.

Electronic Commerce Operators (ECOs) are required to collect Tax Collected at Source (TCS) on net taxable supplies under Section 52(1) of the CGST Act. As per 53rd GST Council meeting recommendations, TCS rate reduced from present 1% (0.5% CGST + 0.5% SGST/ UTGST, or 1% IGST) to 0.5 % (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST).

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
New Delhi

Notification No. 01/2024- Integrated Tax | Dated: 10th July, 2024

G.S.R. 380(E). — In exercise of the powers conferred by the second proviso to section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (1) of section 52 of the Central Goods and Services Tax Act,2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 02/2018-Integrated Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 901(E), dated the 20th September, 2018, namely:-

In the said notification, for the words “one per cent.”, the words “half per cent.” shall be substituted.

2. This notification shall come into force from the date of its publication in official gazette.

[F. No. CBIC-20006/21/2024-GST]
RAGHAVENDRA PAL SINGH, Director

Note: – The principal Notification No. 02/2018-Integrated Tax, dated the 20th September, 2018 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 901(E), dated the 20th September, 2018.