TCS under GST: Procedural Compliances, Provisions U/s 52 CGST Act

TCS under GST– The GST arrangements attend to the applicability of TCS arrangements under Section 52 of Chapter X of the CGST Act. Such arrangements as of now are only applicable to an E Commerce operator. Now check out more details for “ TCS under GST: Procedural Compliances, Provisions U/s 52 CGST Act” from below…

TCS under GST

E -Commerce Operator (U/s 52)

The CGST Act,2017 defines the terms “electronic commerce” and “e commerce operators” under Section 2 as below:-.

” Electronic commerce” means the supply of products and/or services consisting of digital items over digital/ electronic network.

” Electronic commerce operator” implies anybody who owns/operates/manages digital or electronic center or platform for electronic commerce.

P rovisions U/s 52( 1) of the CGST Act

Notwithstanding anything on the contrary contained in this Act, every electronic commerce operator (hereafter in this section described as the “operator”), not being a representative, shall gather a quantity calculated at such rate not going beyond one per cent., as may be alerted by the government on the suggestions of the Council, of the net worth of taxable materials made through it by other providers where the consideration with regard to such supplies is to be gathered by the operator.

Explanation.– For the purposes of this sub-section, the expression “net value of taxable materials” will suggest the aggregate value of taxable supplies of goods or services or both, other than services informed under sub-section (5) of area 9, made throughout any month by all signed up persons through the operator decreased by the aggregate worth of taxable supplies returned to the suppliers throughout the said month.

In simple the words the above provisions offer the following:–

  • The e-commerce operator needs to withhold 1 percentage of the amount which is due from him to the provider at the time of making actual payment to the supplier.
  • This is a compulsory levy of tax on “net worth of taxable products”.
  • It has actually be gathered from signed up persons/suppliers selling goods through the operator.
  • The tax is to be gathered just where the consideration for the supply of items and services made through it is gotten straight by the operator. Therefore, site like OLX or Quickr or JustDial or 99 acres has no statutory responsibility to collect 1% tax since the factor to consider here is not gotten by the operator but the seller himself.
  • The “net worth of taxable materials” will include the aggregate value of materials made through the operator by the signed up individuals in a month as minimized by the aggregate value of taxable products returned to the providers during the said month.
  • The aggregate worth of the notified services on which the e-commerce operator would be responsible as supplier accountable to pay GST would be left out.

Value of Taxable Supplies

” Net Value of Taxable Supplies” in a month —

Aggregate Value of Taxable materials of Goods and/or Services in a month


Services notified U/s( 9 )( 5 )


Aggregate Value of Taxable Supplies returned in a month

Procedural Compliances

  • The TCS gathered is to be transferred by the 10 th of the month following the month in which the tax is so gathered.
  • The amount deposited as TCS will be shown in the electronic cash journal of the provider. The information will be reflected on real time basis. This ledger can be utilized for making any payment on account of GST.
  • A month-to-month return would be required to be filed for external products made in a month and goods returned in Return Form GSTR-8 by the 10 th of the following month.
  • The external materials and goods returned details for a monetary requirement to be also provided in the yearly return declared such financial year.
  • The matching provisions apply and the declaration provided by the e-commerce operator would be matched with the return of external products of the supplier.
  • The proper officer is empowered to require the operator through a notice recommended information consisting of the materials made and info on stock of items held. Any information requisitioned would be required to be responded within 15 days of notification served and any non-compliance of furnishing requisitioned details might involve charge which might reach Rs. 25000/-

Power to appropriation info

  • Proper officer empowered to require through a notice to provide prescribed details including the materials made and details on stock of items held.
  • Non compliance of details requisitioned within defined period in notification served might entail charge which might reach Rs. 25000/-


  • The explanation in Sec 52( 1) for “ net worth of taxable supplies” doesn’t clarify that the worth of goods will be inclusive of GST or not. If included this will result in a cascading result.
  • E-Commerce Operator to deal with compliance burden. Will impact small business with compliance burden as both operator and provider will need to keep records, specially the operators who have to keep record for countless providers.

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