The Union Finance Minister Nirmala Sitaraman presided over the 50th meeting of the GST Council on 11th July 2023 at Vigyan Bhawan in New Delhi including Revenue Secretary, CBIC chairman.
The finance minister clarified to issue a circular on Tax Collection at Source (TCS) under Section 52 of Central Goods and Service Tax, Act 2017 in cases where multiple E-commerce Operators (ECOs) are involved in a single transaction of supply of goods or services or both.
As per Section 52 of Central Goods and Service Tax, Act 2017 defined the term Tax Collections at Source. TCS means Tax Collections at Source. TCS is collected by e -commerce operators while making payment to vendors.
This payment will be the amount collected on the vendor’s behalf for the supplies made by him via the online portal. Thus every e -commerce operator needs to collect 0.5% under CGST and 0.5 % under SGST. In the case of an Inter State transaction it will be 1%.
It was increased due to the development of e -commerce platforms like flipkart, amazon, meesho etc. Hence the e -commerce operators who operate e -commerce platforms are liable to collect TCS. They shall deposit the tax deducted in form GSTR-8.
In some cases, multiple E commerce operators are involved in a single transaction of supply of goods and service or both, in such cases the law committee recommended that the supplier should handle TCS compliance then make the payment to the supplier.
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