Section 52(1) to 52(3) tax Collected at Source - GST Ready Reckoner - GST

Section 52(1) to 52(3) tax Collected at Source Introduction TCS as per Income Tax Act,1961 It is the tax payable by a seller to the Government which he collects from the buyer at the time of sale. The goods on which the seller has to collect tax from the buyers is referred to in section 206C of the Act. TCS as per GST Act, 2017 It is the tax payable by an e-commerce operator to the Government, which the e-commerce operator collects from the payments received from the buyer on behalf of the supplier/seller for the taxable supplies of goods or services made through the e-commerce portal. As per section 52 , an e-commerce operator is liable to collect TCS only when the e-commerce platform is used by other suppliers to sell/supply their taxable goods or services and the consideration is received by the e-commerce operator on behalf of the supplier Note: Compliance with TCS provisions does not arise when the supplier is an e-commerce operator and it supplies/sells on its own account. Note: Compliance with TCS provisions are applicable when the supplier is not an e-commerce operator itself, and the e-commerce platform is used for taxable supplies of other suppliers/sellers. Note: Any supplier who intends to sell goods and/or services through an e-commerce platform needs to get registered under GST. The exemption limit of turnover is not applicable for registration under GST. the supplier of goods the supplier of services covered u/s 9(5) But for the supplier of services other than services covered u/s 9(5), GST registration will take into consideration the exemption limit of turnover. [Government had notified the same vide CGST Notification No. 65/2017 dated 15.11.2017 .] Collection of TCS it is the obligation of the e-commerce operator to collect the tax at a specified rate from the consideration received for the taxable supply of goods or services by them on behalf of the supplier. [ section 52(1) ] an e-commerce operator has the power to collect the tax without prejudice to any mode of recovery. [ section 52(2) ] Rate of TCS Upto 09th July 2024 The e-commerce operator shall collect tax at the notified rate based on inter or intrastate supplies made through the portal of the operator by other suppliers. In the case of intra-state supplies: - 1% of the net value of taxable supplies (i.e. 0.5% of CGST and 0.5% of SGST) Notification No. 52/2018 Central Tax Dated 20.09.2018 ; or In the case of inter-state supplies: - 1% of the net value of taxable supplies (i.e. 1% of IGST). Notification No. 02/2018 Integrated Tax Dated 2.09.2018. From 10th July 2024 The e-commerce operator shall collect tax at the notified rate based on inter or intrastate supplies made through the portal of the operator by other suppliers. In the case of intra-state supplies: - 0.5% of the net value of taxable supplies (i.e. 0.25% of CGST and 0.25% of SGST ) Notification No. 15/2024- Central Tax date 10.06.2024 or In the case of inter-state supplies: - 0.5% of the net value of taxable supplies (i.e. 0.5% of IGST) Notification No. 01/2024-Integrated Tax Dated 10.06.2024 . Note: TCS @ 1% will be calculated on the value which is inclusive of commission, GST SGST. For Eg. If Mr. X is a supplier who sells a toy of Rs.5,000(which is inclusive of tax commission) on Flipkart(e-commerce portal). On receipt of Rs. 5,000 by Flipkart, it will first collect tax @1% on full value including commission i.e. Rs. 50. As per the explanation referred in section 52(1) of the CGST Act , The net value of taxable supplies means the aggregate value of taxable supplies of goods or services or both, except for services us/ 9(5) [are services where the entire tax is payable by the e-commerce operator under reverse charge mechanism], made through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. i.e. Net value of taxable supplies equals to :- Aggregate value of Taxable Goods services - Services Referred Under section 9(5) - Aggregate value of taxable supplies returned Note : The value of net taxable supplies is calculated at the GSTIN level. TCS collected by an e-commerce operator [ section 52(3) ] An e-commerce operator has to deposit the TCS collected with the Government within ten days after the end of the month of collection. The electronic liability register shall be credited by making payment by way of debiting the e-cash ledger.