GST TCS For E-Commerce Operators

Electronic commerce platforms such as Amazon and Flipkart are mandated to collect 1% of net sales of products or services made through their platforms as Tax Collection at Source (TCS). Only the amount that is collected by the operator is subject to taxation.

Net Sales Calculation

GST TCS For E-Commerce Operators

The quantity of products returned by the consumer is subtracted from the net sales made through the platform. Sales of services for which an e-commerce operator is liable to pay GST under section 9(5) are not included in net sales, and hence no tax is to be collected. At the moment, cab aggregators such as Ola and Uber are notified under Section 9 of the Act (5). They are responsible for collecting and depositing GST.

In this situation, net sales additionally include the GST amount as well as the operator’s commission.

For example, suppose a supplier sells Rs. 1,00,000 worth of goods, but clients return Rs. 10,000 worth of goods. The net sales are Rs. 90,000, and TCS at 1%, or Rs. 900, must be deducted by the operator when paying the supplier.

Taxes Must Be Paid And Statements Must Be Filed

GST TCS For E-Commerce Operators

The amount collected as TCS by the operator must be deposited within 10 days of the top of the month within which it had been collected.

In addition, within 10 days of the tip of the month, details of outward supplies made, supplies returned, and money collected must be filed. Form GSTR-8 is employed to file such a press release.

If the operator discovers any omissions or incorrect particulars during a statement filed, apart from as a result of tax authorities’ scrutiny, audit, inspection, or enforcement activity, he must correct the omissions or incorrect particulars within the statement to be furnished for the month during which the omission or incorrect particulars is discovered, subject to interest payment.

After any of the subsequent dates, no such rectification of any omission or erroneous information is going to be permitted.

  • 10th of October of the subsequent year
  • The actual date on which the suitable annual statement was delivered.

In addition, an annual statement must be filed on or before the 31st of December following the conclusion of the year.

Supplier Gets Input Tax Credit

In his electronic cash ledger, the provider who delivered the goods or services through the e-commerce portal can claim the amount as an input tax credit. After the due date for submitting GSTR-8, the information provided by the operator is made available to the supplier in Part-C of Form GSTR02A.

If the information provided by the e-commerce operator and the information provided by the supplier do not match, the inconsistencies will be disclosed to both parties.

If the supplier does not settle the disparity in his return or the operator’s statement in the month in which the discrepancy is informed, the amount will be added to the supplier’s output tax liability. Only if the value of outward supplies furnished by the operator exceeds the value of outward supplies furnished by the supplier, and only in the month following the month in which the disparity is notified, would this amount be added to the supplier’s output tax liability. In addition, the supplier must pay interest from the due date of payment to the actual payment date.

Officer’s Notice

An officer with the rank of the joint commissioner or higher may serve a notice on an operator requesting information on goods and services supplied during any period, as well as the stock of goods held by suppliers in godowns or warehouses managed by the operator and declared as additional places of business by such suppliers.

The operator must provide this information within 15 days of receiving the notice. If an e-commerce operator fails to provide this information, he or she may be subject to a penalty of up to Rs. 25,000.


This provision for e-commerce portals could cause a lot of problems for new and incoming portals that operate on a modest scale. Regardless of turnover, everyone selling through such an e-commerce firm must register for GST. The government may bind the e-commerce operator to match its overall sales with GSTIN-specific sales, ensuring that only registered people use the e-commerce operator. As a result, TCS isn’t required.