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Frequently Asked Questions on TCS under GST (Updated as on 30.11.2018)

Goods and Services Tax - GST - Dated:- 1-12-2018 - Frequently Asked Questions on TCS Sr. no. Question Answer 1. What is Electronic Commerce? As per Section 2(44) of the CGST Act, 2017, electronic Commerce means the supply of goods or services or both, including digital products over digital or electronic network. 2. Who is an e-commerce operator? As per Section 2(45) of the CGST Act, 2017, electronic Commerce operator means any person who owns, operates or manages digital or electronic facility .....

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Tax Collection at Source (TCS). 4. What is the rate of TCS notified by Government? Rate of TCS is 0.5% under each Act (i.e. the CGST Act, 2017 and the respective SGST Act / UTGST Act respectively) and the same is 1% under the IGST Act, 2017. Notifications No. 52/2018 - Central Tax and 02/2018-Integrated Tax both dated 20th September, 2018 have been issued in this regard. Similar notifications have been issued by the respective State Governments also. 5. Is it mandatory for e-commerce operator t .....

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made by him. However, a person supplying services, other than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform are exempted from obtaining compulsory registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Government has issued the notification No. 65/2017 - Central Tax dated 15th November, 2017 in this regard. 7. Whether TCS is required to be coll .....

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registration provided their aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category States) in a financial year. Since such suppliers are not liable for registration, e-commerce operators are not required to collect TCS on supply of services being made by such suppliers through their portal. 8. Whether e-Commerce operator is required to obtain registration in every State/UT in which suppliers listed on their e-commerce platform are located to under .....

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tate/UT has indicated one administrative jurisdiction where all e-commerce operators having business (but not having physical presence) in that State/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State/UT. 9. Foreign e-commerce operator do not have place of business in India since they operate from outside. But their supplier and customers are located in India. So, in this scenario will the TCS provision be applicable to such e-comme .....

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resence) in that State/UT shall register. The proper officer for the purpose of registration of ECOs has also been notified by each State/UT. If the foreign e-commerce operator does not have physical presence in a particular State / UT, he may appoint an agent on his behalf. 10. Is it necessary for e-Commerce operators who are already registered under GST and have GSTIN, to have separate registration for TCS as well? E-Commerce operator has to obtain separate registration for TCS irrespective of .....

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ier during the said month. 12. Whether value of net taxable supplies to be calculated at gross level or at GSTIN level? The value of net taxable supplies is calculated at GSTIN level. 13. Is every e-commerce operator required to collect tax on behalf of actual supplier? Yes, every e-commerce operator is required to collect tax where the supplier is supplying goods or services through e-commerce operator and consideration with respect to the supply is to be collected by the said e-commerce operat .....

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or such supply has to be collected and reported in the statement for the month of October, 2018. 15. Whether TCS to be collected on exempt supplies? No, TCS is not required to be collected on exempt supplies. 16. Whether TCS to be collected on supplies on which the recipient is required to pay tax on reverse charge basis? No, TCS is not required to be collected on supplies on which the recipient is required to pay tax on reverse charge basis. 17. Whether TCS is to be collected in respect of supp .....

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ince same would fall within the domain of Customs Act, 1962, it would be outside the purview of TCS. Thus, TCS is not liable to be collected on import of goods or services. 19. Is there any exemption on Gold, owing to the fact that rate of GST is only 3% and TCS on it would erode the margin for the seller? No such exemption from TCS has been granted. 20. Whether payment of TCS through Input Tax Credit of operator for depositing TCS as per Section 52 (3) of the CGST Act, 2017 is allowed? No, paym .....

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s, if two suppliers A and B are making supplies through an e-commerce operator, the net value of taxable supplies would be calculated separately in respect of A and B . If the value of returned supplies is more than supplies made on behalf of any of such supplier during any tax period, the same would be ignored in his case. 22. Under Section 52, e-commerce operator collects TCS at the net of returns. Sometimes sales return is more than sales and hence can negative amount be reported? Negative am .....

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d. 24. How can actual suppliers claim credit of TCS? The amount of TCS deposited by the operator with the appropriate Government will be reflected in the electronic 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 in FORM GSTR-8 in terms of Rule 67 of the CGST Rules, 2017. The said credit can be used at the time of discharge of tax liability by the actual supplier. 25. How is TCS to be credited in c .....

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n the respective tax head. If the supplier is not able to use the amount lying in the said cash ledger, the actual supplier may claim refund of the excess balance lying in his electronic cash ledger in accordance with the provisions contained in section 54(1) of the CGST Act, 2017. 26. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Yes, every operator is required to furnish a statement, electronically, contain .....

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ection 52(6) of the CGST Act, 2017, interest is applicable on omission as well in case of incorrect particulars noticed. In such a case, interest is applicable since it is a case of omission. Further penalty under section 122(vi) of the CGST Act, 2017 would also be leviable. 28. What will be the place of supply for e-commerce operator for recharge of talk time of the Telecom Operator / recharge of DTH / in relation to convenience fee charged from the customers on booking of air tickets, rail sup .....

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