TMI BlogFrequently Asked Questions on TCS under GST (Updated as on 30.11.2018)X X X X Extracts X X X X X X X X Extracts X X X X ..... required to collect an amount calculated at the rate not exceeding one per cent., as notified by the Government on the recommendations of the Council, 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). 4. What is the rate of TCS notified by Government? Ans. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her than supplier of services under section 9 (5) of the CGST Act, 2017, through an e-commerce platform were 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. 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 undertake the necessary compliance as mandated under the law? Ans. As per the extant law, registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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? Ans. E-Commerce operator has to obtain separate registration for TCS irrespective of the fact whether e-Commerce operator is already registered under GST as a supplier or otherwise and has GSTIN. 11. What is meant by net value of taxable supplies ? Ans. Ans. The net value of taxable supplies means the aggregate value of taxable supplies of goods or services or both, other than the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be collected on supplies on which the recipient is required to pay tax on reverse charge basis? Ans. 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 supplies made by the composition taxpayer? Ans. As per section 10(2)(d) of the CGST Act, 2017, a composition taxpayer cannot make supplies through e-commerce operator. Thus, question of collecting TCS in respect of supplies made by the composition taxpayer does not arise. 18. Whether TCS is to be collected on import of goods or services or both? Ans. TCS is not liable to be collected on any supplies on which the recipient is required to pay tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TCS at the net of returns. Sometimes sales return is more than sales and hence can negative amount be reported? Ans. Negative amount cannot be declared. There will be no impact in next tax period also. In other words, if returns are more than the supplies made during any tax period, the same would be ignored in current as well as future tax period(s). 23. What is the time within which such TCS is to be remitted by the e-commerce operator to the Government account? Ans. The amount collected by the operator is to be paid to appropriate government within 10 days after the end of the month in which the said amount was so collected. 24. How can actual suppliers claim credit of TCS? Ans. The amount of TCS deposited by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 10 days after the end of such month in FORM GSTR-8. 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 in FORM GSTR-9B. 27. Whether interest would be applicable on non-collection of TCS? Ans. As per section 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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