GST Registration of the TCS taxpayers

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With the advent of the goods and services tax, a lot of changes have taken place. All the business firms must get GST registration. Getting registered under GST has a lot of benefits, one of them being the tremendous ease of doing business. Nevertheless, the businessmen are having a few queries. One such crucial aspect is of TCS under GST.

Here are some frequently asked questions regarding the concept of TCS under GST.


#1. What is TCS?

TCS means the tax collected at source. When an e-commerce operator, supplies the goods and services to the consumers, of some different supplier, then he has to levy GST @1% on the consideration. This is called the tax collected at source. 


#2. Who is an e-commerce operator?

Any person owning and managing an online platform for selling goods and services or both to the consumers is known as an e-commerce operator or ECO.

For example: 

A supplier (say ABC Ltd.) sells his goods with the help of an e-commerce operator (say Amazon or Flipkart).

  • Suppose ABC Ltd. supplies goods worth ₹45 lacs on the e-commerce portal. 
  • In this case, the GST @1% on the value of goods shall be ₹45,000. Thus, ₹44,55,000 will go to ABC Ltd. 
  • ₹45,000 shall be collected by the ECO, which he will pay to the government.


#3. What is the rate applicable under TCS?

The dealers will receive payment of their goods after the deduction of TCS @1%. It implies for an intrastate supply- 0.5% CGST and 0.5% SGST is charged. And if the transfer of goods is between different states, TCS will be 1% under IGST Act.


#4. Which GST return is to be filed by Tax Collectors?

Electronic commerce operators have to file GSTR-8.


#5. Whether TCS applies to ECOs located outside India? 

TCS applies to all the ECOs irrespective of their business location. If the supplier and the consumers of goods and services are in India, then TCS will apply. 


#6. Where do the Non-resident ECOs get themselves registered?

All the foreign e-commerce operators are required to get GST registration in each state/ union territory.

  • Every state/UT has an administrative jurisdiction. All the electronic commerce operators have to get GST registered within the jurisdiction of their respective areas. 
  • If the ECO is outside India, then he must appoint an agent to do the GST registration in the respective State/UT on his behalf.


#7. How do ECOs get a separate GST registration for TCS? 

Along with all the GST registration, the ECOs must get a separate GST registration for TCS by filing the FORM GST REG-07.


#8. How will the supplier be able to claim TCS credit? 

TCS deposited by the operator with the government is there in the electronic cash ledger of the actual supplier (ABC Ltd). TCS is based on the GST return filing procedure by the operator in the Form GSTR-8. 


#9. How is TCS entered in the electronic cash ledger?

GST Tax collected at source by the electronic commerce operator is deposited under the respective tax head (CGST/SGST/UTGST/IGST).

Therefore, based on this GST return filing done by the operator, the tax is credited in the electronic cash ledger of the supplier.


#10. What is the time limit for TCS tax payment? 

TCS collected should be delivered to the government before 10 days after the end of the collection of the month.

GST Tax collected at source is applicable only when a supplier wants to sell his goods and services through the electronic commerce operator. If the operator wishes to sell his goods & services through his platform, then TCS will not be applied.

Know in detail about TCS under GST.

If you require any other guidance with respect to GST return filing, GST registration, and other GST compliance, please feel free to contact our business advisors at 8881-069-069.

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