E-commerce have to deduct 1% TCS under GST

On 20th September, the Government of India notified that E-commerce operators will have to start deducting 1 % TCS(tax collected at source). The TCS provision will be levied from October 1st. This deduction would have to do before making payments to the suppliers.

Furthermore, Every e-commerce operator needs to obtain a separate registration Under the GST Act. The Center Board of Indirect Taxes and Customs(CBIC) said, both domestic and foreign E-commerce operators must have to register in each state/UT.

In the state, CBIC notified levy at the rate of 0.50 percent SGST for the supplies. Any operator would be liable to collect TCS from October 1st for supplying goods intrastate. All the E-commerce operators will have to collect the amount of money as TCS  and should get submit within 10 days in form of GSTR-8. The collected money goes half to the central government and half to the state.

A person supplying services through an e-commerce platform has no need to obtain compulsory registration, if it’s provided their average turnover does not exceed Rs 20 lakhs.TCS is not applicable to the COD(cash on delivery) payment method as this is collected on behalf of the supplier. However, when the supply has made by the third party, in this any operators become liable to deduct TCS under the Goods and Service Tax(GST).

Especially, for foreign operators which do not have any physical presence in India or in state/UT, can appoint an agent on their behalf.

Consequently, it would increase burden for e-commerce but relieve stress for the Government of India by helping in tax evasion.