TCS APPLICABILITY
TCS stands for Tax Collected at source. In the GST regime, every e-commerce operator needs to collect 0.5% under CGST Act and 0.5% under SGST Act; In case of inter-state transactions, 1% (under IGST Act) on the net values of taxable supplies made through the e-commerce operator.
WHO IS LIABLE TO COLLECT TCS UNDER GST
TCS will be collected by e-commerce operators while making a payment to the vendor. This payment will be the consideration collected on the vendor’s behalf for the supplies made by him via the online portal. This tax will be collected on the net value of taxable supplies.
APPLICABLE RATE UNDER TCS
The dealers or traders supplying goods and/or services through e-commerce operators will receive payment after deduction of TCS @ 1%.
GST REGISTRATION FOR TCS
GST registration is mandatory for both e-commerce operators and persons supplying goods or services through an e-commerce operator
REQUIREMENTS FOR TCS REGISTRATION
1. For Registration as Tax Collector: Applicant has valid PAN.
2. Applicant must have a valid mobile number.
3. Applicant must have valid E-mail ID.
4. Applicant must have a place of business.
5. Applicant must have an authorized signatory with valid details.
6. Applicant has to file form GST REG-07 for taking registration as Tax Collector.
TCS RETURN
GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST. GSTR-8 contains the details of supplies effected through e-commerce platform and amount of TCS collected on such supplies
DUE DATE FOR RETURN
The operator is also required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month.
