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E-Commerce operator liable to deduct TCS and TDS of the Supplier, Goods and Services Tax - GST

Issue Id: - 117229
Dated: 18-5-2021
By:- Navneet Agarwal
E-Commerce operator liable to deduct TCS and TDS of the Supplier

  • Contents

Dear Sir/Madam,

The company owns a platform which assists in creating Digital Showroom which assist in creating Digital Showroom, Start online selling & grow your online shop/Kirena store. Any wholesaler or retailer or a small store owner, you can run your whole e-commerce on online platform. Vendor’s will registered in platform by paying certain amount as Subscription fees.

After registering in platform, Customers can get access to the online showrooms, online platform. Interested customers can contact directly to the registered vendors to purchase goods or services. The consideration can be paid through the platform or can be directly to vendors like COD. Currently, Company’s revenue is only subscription fees collected while registering.

Company would like to know the applicability of TDS and TCS provisions under Income Tax and GST Act. Whether company needs to take separate registration for TCS under Section 52 and Deduct TDS of the Seller U/S 194-O?


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Showing Replies 1 to 3 of 3 Records

1 Dated: 18-5-2021
By:- shwetal oswal

Yes sir you need to get registered for TCS under Section 52 under GST and under Section 194-O

The process cannot be explained in the comments as it has various aspects.

So you drop your mail on this email id, for total clarity:

2 Dated: 19-5-2021

Registration is compulsory under Section 24(x) of CGST Act. You can show your head office as place of business. See serial no.5 to 7 of FAQs released by Law Committee of GST Council on 29.9.2018. Also go through the following :-

RULE 12.of CGST Rules, 2017:- Grant of registration to persons required to deduct tax at source or to collect tax at source. - (1) Any person required to deduct tax in accordance with the provisions of section 51 or a person required to collect tax at source in accordance with the provisions of section 52 shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07* for the grant of registration through the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

[(1A) A person applying for registration to [deduct or] collect tax in accordance with the provisions of [section 51, or, as the case may be] section 52, in a State or Union territory where he does not have a physical presence, shall mention the name of the State or Union territory in PART A of the application in FORM GST REG-07* and mention the name of the State or Union territory in PART B thereof in which the principal place of business is located which may be different from the State or Union territory mentioned in PART A.]

(2) The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG-06* within a period of three working days from the date of submission of the application.

(3) Where, upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in FORM GST REG-06* has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub-rule (2) and such cancellation shall be communicated to the said person electronically in FORM GST REG-08 :

Provided that the proper officer shall follow the procedure as provided in rule 22 for the cancellation of registration.

3 Dated: 21-5-2021

Dear Navneet Ji,

There is no TCS registration under GST. The registration is compulsory for electronic commerce operator who is required to collect tax at source (TCS) under section 52. In compulsory registration, your threshold is not looked into.

First question, are you an electronic commerce operator (ECO)? Relevant extract of CGST Act hereinbelow:

S. 2 (44) ―electronic commerce - means the supply of goods or services or both, including digital products over digital or electronic network;

S. 2 (45) ―electronic commerce operator - means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

In accordance with S. 2(45), you fall under ECO. Hence, you are required to register under the Act.

If you have filled form GST REG-01, then you have done the wrong registration. ECO has to fill Form GST REG – 07. Kindly refer to Rule 12 of the CGST Rules r/w. Section 24 of the CGST Act. Then after registration collect the tax at source in compliance with Section 52 of the CGST Act.


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