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TCS Provisions Under GST Act

  • The e-commerce operator is required to collect an amount calculated at the rate not exceeding one per cent of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS).
  • An e-commerce company is required to collect tax only on the net value of taxable supplies. In other words, value of the supplies which are returned are adjusted in the aggregate value of taxable supplies.
  • The “net value of taxable supplies” means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator, made during any month by all registered persons through such operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
  • Every e-commerce operator is required to collect tax where consideration with respect to the supply is being collected by the e-commerce operator.
  • The e-commerce operator should make the collection during the month in which supply was made.
  • The amount collected by the operator is to be paid to appropriate Government within 10 days after the end of the month in which amount was so collected.
  • The amount of TCS deposited by the operator with the appropriate Government will be reflected in the cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies by the actual supplier.
  • Every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount collected by it as TCS during a month within ten days after the end of such month. The operator is also required to file an annual statement by 31st day of December following the end of the financial year in which the tax was collected.
  • If operator after furnishing the above statement discovers any omission or mistake therein, other than as a result of scrutiny, audit, inspection or enforcement activities carried out by tax authorities, he shall rectify such omission or mistake in the statement to be furnished for the month during which such omission or mistakes are noticed, subject to payment of interest.

    However no such rectification is allowed after due date of furnishing of statement for the month of September following the end of the financial year or filing of the annual statement of that year whichever is earlier.

  • The details of supplies and the amount collected during a calendar month, and furnished by every operator in his statement will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same calendar month or any preceding calendar month. Where the details of outward supply, on which the tax has been collected, as declared by the operator in his statement do not match with the corresponding details declared by the supplier the discrepancy shall be communicated to both persons.
  • The value of a supply relating to any payment in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output liability of the said supplier, for the calendar month succeeding the calendar month in which the discrepancy is communicated. The concerned supplier shall, in whose output tax liability any amount has been added shall be liable to pay the tax payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment.
  • Any authority not below the rank of Deputy Commissioner may issue a notice to the electronic operator to furnish specified details within a period of 15 working days from the date of service of such notice.
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