Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through operator’s online platform. TCS will be charged as a percentage on the net taxable supplies.
The provisions of the TCS is as
follows:
· Collector: As per Section 52 of CGST Act every Electronic
Commerce Operator shall collect tcs on the consideration collected by them
where the supplies are made by other supplier through them. TCS applies only if the operators collect the
consideration from the customers on behalf of vendors or suppliers.
Here
are few exceptions to the TCS
provisions for the services provided by an e-commerce platform:
a.
Hotel accommodation/clubs (unregistered suppliers)
b.
Transportation of passengers – radio taxi, motor cab or motorcycle
c. Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)
· Applicability: Operator shall collect tax @ 1% (0.5% each under SGST and CGST Act) of the net value of taxable supplies made through it by other suppliers.
· Taxable value: This net taxable value will be calculated as under:
Net
Value of Taxable Supplies = [(Aggregate Value of Taxable Supplies of Goods +
Services ) – (Section 9(5) Services)]} – (Aggregate Value of Returned Taxable
Supplies + Goods)]
· Registration: The e-commerce operator is liable to collect
TCS have to compulsorily register under GST and there is no threshold limit
exemption for it. Also, the sellers supplying goods through the online portal
of e-commerce players are also mandatorily required to get registered under GST
except for a few exceptions.
· Exemption: Every person who supplies through an
e-commerce operator, except those who make supplies notified under section 9
(5) of CGST Act. The suppliers of services making a supply
through an e-commerce platform are exempt from registration if their aggregate
turnover is less than Rs 20 Lakhs (assuming they do not make inter-state
supplies).
· Return: TCS will be deducted during the month in which the supply is made. It will be deposited within 10 days from the end of the month of supply to the credit of the government. Monthly statement is filed in FORM GSTR-8 within 10 days from the end of the month. Annual statement is filed before 31st December following the end of financial year.
Penal provisions: If the TCS Certificate is not issued within 5 days from the date of deposit with the Govt., the collector would be liable to pay late fees of Rs. 100/- day. However, the late fees levied should not be more than Rs. 5,000 each under CGST and SGST Act.
FOR TDS PROVISIONS UNDER GST, VISIT THE LINK BELOW..
https://cacityindia.blogspot.com/2020/08/tds-under-gst-act-section-51-of-cgst-act.html
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