{"id":4090,"date":"2020-03-25T08:37:57","date_gmt":"2020-03-25T08:37:57","guid":{"rendered":"https:\/\/commerceiets.com\/?p=4090"},"modified":"2020-03-25T08:37:57","modified_gmt":"2020-03-25T08:37:57","slug":"how-to-claim-tcs-in-gst","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/","title":{"rendered":"HOW TO CLAIM TCS IN GST"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/#HOW_TO_CLAIM_TCS_IN_GST\" title=\"HOW\nTO CLAIM TCS IN GST\">HOW\nTO CLAIM TCS IN GST<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/#PROVISIONS_OF_TCS\" title=\"PROVISIONS OF TCS\">PROVISIONS OF TCS<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"HOW_TO_CLAIM_TCS_IN_GST\"><\/span><strong>HOW\nTO CLAIM TCS IN GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>Tax Collected at Source (TCS) under <a href=\"https:\/\/commerceiets.com\/gst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"GST (opens in a new tab)\">GST<\/a> means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through operator\u2019s online platform. TCS will be charged as a percentage on the net taxable supplies.<\/p>\n\n\n\n<p>TCS credit received is a facility\navailable after logging in to the GST portal. It can be filed by all the\ntaxpayers who are making specified sales on the e-commerce platforms and\/or\nentered into any kind of works contract with Government departments. The form\nis mostly similar to GSTR-2A as it auto-populates details from GST returns\nlike&nbsp;GSTR-7&nbsp;and&nbsp;GSTR-8&nbsp;together.<\/p>\n\n\n\n<p>Any GST portal user can click on\n\u2018TCS credit received\u2019 tile available on return dashboard after logging in. This\ncan help them to claim or reject the credit of&nbsp; TCS&nbsp;deducted or\ncollected by their corresponding e-commerce operator.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"PROVISIONS_OF_TCS\"><\/span><strong>PROVISIONS OF TCS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Section 52 of the CGST Act, 2017<\/strong>&nbsp;has specified the provision for collection of tax\nat source. Tax Collection at Source (TCS) has similarities with TDS, as well as\na few distinctive features. TDS refers to the tax which is deducted when the\nrecipient of goods or services makes some payments under a contract etc. while\nTCS refers to the tax which is collected by the electronic commerce operator\nwhen a supplier supplies some goods or services through its portal and the\npayment for that supply is collected by the electronic commerce operator.<\/p>\n\n\n\n<p><strong>Section 2 (45) of the <a href=\"https:\/\/commerceiets.com\/cgst\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"CGST Act (opens in a new tab)\">CGST Act<\/a>,&nbsp;<\/strong>defines<strong>&nbsp;\u201cElectronic Commerce Operator<\/strong>\u2019 means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.<\/p>\n\n\n\n<p><strong>Section 2(44) of the CGST Act<\/strong>, defines \u2018<strong>Electronic Commerce<\/strong>\u2019 means the supply of goods or\nservices or both, including digital products over digital or electronic\nnetwork.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>PROCEDURE OF COLLECTION OF TCS<\/strong><\/p>\n\n\n\n<p>The goods or services belonging\nto other suppliers are displayed on the portals of the operators and consumers\nbuy such goods\/services through these portals. On placing the order for a\nparticular product\/service, the actual supplier supplies the selected\nproduct\/service to the consumer. The price\/consideration for the product\/\nservice is collected by the operator from the consumer and passed on to the\nactual supplier after the deduction of commission by the operator. Every\nelectronic commerce operator, not being an agent, shall collect an amount\ncalculated at the rate of 1% of the net value of taxable supplies made through\nit where the consideration with respect to such supplies is to be collected by\nthe operator and pay to the Government.<\/p>\n\n\n\n<p>Net value has to be ascertained\nin terms of a formula as provided under sub-section (1) of Section 52 of the\nAct.<\/p>\n\n\n\n<p><strong>Net Value of Taxable Supplies =\n[(Aggregate Value of Taxable Supplies of Goods + Services) \u2013 (Section 9(5)\nServices)]} \u2013 (Aggregate Value of Returned Taxable Supplies + Goods)]<\/strong><\/p>\n\n\n\n<p><strong>Example:<\/strong>&nbsp;Suppose a certain product is sold at Rs. 1000\/-\nthrough an Operator by a seller. The Operator would deduct tax @ 1% of the net\nvalue of Rs. 1000\/- i.e. Rs. 10\/-.<\/p>\n\n\n\n<p>The said amount will be\ncalculated on the net value of the goods\/services supplied through the portal\nof the operator. For the purposes of considering the \u201cnet value of taxable\nsupplies\u201d shall mean the aggregate value of taxable supplies of goods or\nservices, other than services notified under sub-section (4) of section 8 of\nthe CGST Act, made during any month by all registered taxable persons through\nthe operator reduced by the aggregate value of taxable supplies returned to the\nsuppliers during the said month.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>REGISTRATION<\/strong><\/p>\n\n\n\n<p>The e-commerce operator as well\nas the supplier supplying goods or services through an operator needs to\ncompulsorily register under The threshold limit of Rs. 20 lakhs (Rs. 10 lakhs\nfor special category states) is not applicable to them. Section 24(x) of the\nCGST Act, 2017 makes it mandatory for every e-commerce operator to get registered\nunder GST. Similarly, section 24(ix) of the CGST Act, 2017 makes it mandatory\nfor every person who supplies goods\/services through an operator to get\nregistered under GST.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>POWER TO COLLECT TAX<\/strong><\/p>\n\n\n\n<p>Section 52 (2) of the CGST Act,\nempowered electronic commerce operator to collect the amount shall be without\nprejudice to any other mode of recovery from the operator.<\/p>\n\n\n\n<p>Certain operators who own,\noperate and manage e-commerce platforms are liable to collect TCS. TCS applies\nonly if the operators collect the consideration from the customers on behalf of\nvendors or suppliers. In other words, when the e-commerce operators pay the\nconsideration collected to the vendors they have to deduct an amount as TCS and\npay the net amount.<\/p>\n\n\n\n<p>Here are few exceptions to the\nTCS provisions for the services provided by an e-commerce platform:<\/p>\n\n\n\n<p>a. Hotel accommodation\/clubs (unregistered suppliers)<\/p>\n\n\n\n<p>b. Transportation of passengers \u2013\nradio taxi, motor cab or motorcycle<\/p>\n\n\n\n<p>c. Housekeeping services like plumbing, carpentry etc. (unregistered suppliers)<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"628\" height=\"481\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-76.png\" alt=\"\" class=\"wp-image-4093\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-76.png 628w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-76-300x230.png 300w\" sizes=\"auto, (max-width: 628px) 100vw, 628px\" \/><\/figure>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>TIME PERIOD FOR TCS TAX PAYMENT<\/strong><\/p>\n\n\n\n<p>Sub-section (3) of Section 52 of\nthe Act provides that Tax Collected at Source shall be paid to the Government\nwithin 10 days after the end of the month of collection.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>MANNER OF PAYMENT<\/strong><\/p>\n\n\n\n<p>Any amount Collects as TCS shall\nbe paid by debiting the e-cash ledger and electronic liability register shall\nbe credited accordingly.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>MONTHLY STATEMENT<\/strong><\/p>\n\n\n\n<p>The every operator who collects\nthe amount of tax shall furnish a statement, electronically, containing all the\ndetails relating to:<\/p>\n\n\n\n<p>a. Outward supplies of Goods and\nServices.<\/p>\n\n\n\n<p>b. Returned of goods and\nservices.<\/p>\n\n\n\n<p>c. Amount collected during a\nmonth.<\/p>\n\n\n\n<p>In&nbsp;<strong>Form GSTR-8<\/strong>&nbsp;within\n10 days from the end of the month in terms of sub-rule (1) of Rule 67 of the\nrules read with sub-section (4) of Section 52 of the CGST Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>ANNUAL STATEMENT<\/strong><\/p>\n\n\n\n<p>The every electronic commerce\noperator who collects tax at source shall furnish an annual Statement,\nelectronically, containing all the details relating to:<\/p>\n\n\n\n<p>a. Outward supplies of Goods and\nServices,<\/p>\n\n\n\n<p>b. Returned of goods and services\nduring the Financial Year,<\/p>\n\n\n\n<p>c. Amount collected during a\nfinancial year.<\/p>\n\n\n\n<p>In&nbsp;<strong>Form\nGSTR-9B&nbsp;<\/strong>by 31\u2019st December following the end of such\nFinancial Year in terms of sub-section (5) of section 52 of the CGST Act, and\nread with sub-rule (2) of Rule 80 of the CGST Rules.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>ERROR IN MONTHLY STATEMENT<\/strong><\/p>\n\n\n\n<p>If any e.commerce operator who\ncollects the amount under section 52(1) of the Act, after furnishing a\nstatement found any errors or omissions or incorrect particulars therein, other\nthan as a result of scrutiny, audit, inspection or enforcement activity by the\ntax authorities then he shall rectify the same in the statement of month of\nsuch discovery, subject to Payment of interest under sub-section (6) of Section\n52 of the Act.<\/p>\n\n\n\n<p><strong>Provided that no rectification\nwill be allowed:-<\/strong><\/p>\n\n\n\n<p>After the due date of furnishing\nthe statement for the month of September following the end of Financial Year,\nor Actual date of Furnishing the Annual Statement, whichever is earlier.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>CLAIM OF INPUT CREDIT<\/strong><\/p>\n\n\n\n<p>Supplier of goods and services\ncan claim the amount of credit in their e-Cash Ledger as collected and\nreflected by the e.commerce Operator in Statement under sub-section (7) of\nSection 52 of the Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>MATCHING OF SUPPLIES<\/strong><\/p>\n\n\n\n<p>The Supplies shall match with the corresponding outward supplies of the registered Supplier as the details furnished by the e-commerce operator in&nbsp;<strong>Form<\/strong>&nbsp;<strong>GSTR-8<\/strong>&nbsp;shall be made available electronically to each of the suppliers in Part C of&nbsp;<strong>Form GSTR -2A<\/strong>&nbsp;on the Common Portal after the due date of filing of&nbsp;<strong>Form GSTR-8<\/strong>&nbsp;in terms of Rule (2) of Rule 67 read with sub-section (8) of Section 52 of the Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>DISCREPANCY OF SUPPLIES<\/strong><\/p>\n\n\n\n<p>When the Supplies under\nsub-section (4) do not match with the corresponding supplies of the supplier\nthen, such discrepancy shall be communicated to both the persons in terms of\nsub-section (9) of Section 52 of the Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>PAYMENT OF DIFFERENTIAL AMOUNT<\/strong><\/p>\n\n\n\n<p>The amount in respect of which\nany discrepancy in the value of such supplies, the same would be communicated\nto both of the under sub-section (9) of Section 52 of the Act. If such\ndiscrepancy in value is not rectified within the given time, then such amount\nwould be added to the output tax liability of such suppler. The supplier will\nhave to pay the differential amount of output tax along with interest in terms\nof sub-section (10) &amp; sub-section (11) of section 52 of the Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>NOTICE TO THE ELECTRONIC COMMERCE\nOPERATOR<\/strong><\/p>\n\n\n\n<p>An officer not below the rank of\nDeputy Commissioner can issue Notice to supplied through electronic commerce\noperator during any period, stock of goods lying in warehouses\/ godowns etc.,\nmanaged by such operator and declared as additional places of business by such\nsupplies.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>REPLY TO NOTICE<\/strong><\/p>\n\n\n\n<p>The electronic commerce operator\nis required to furnish such details within 15 working days of serve of such\nnotice under sub-section (13) of Section 52 of the Act.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>RECOVERY PROCEEDING<\/strong><\/p>\n\n\n\n<p>In case an electronic commerce operator fails to furnish the information required by the notice, besides being liable for penal action under section 122 of the Act, states that any person committing the offences as stated under the section, shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher, it shall also be liable for penalty up to Rs. 25,000\/-.<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>HOW TO CLAIM TCS IN GST Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through operator\u2019s online platform. TCS will be charged as a percentage on the net taxable supplies&#8230;.<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/how-to-claim-tcs-in-gst\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;HOW TO CLAIM TCS IN GST&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":4092,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[229],"tags":[],"class_list":["post-4090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goods-and-service-tax"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=4090"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/4092"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=4090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=4090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=4090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}