As per the GST provisions, Tax Collection at Source (TCS) is the tax collected by an electronic commerce operator (ECO) from the consideration received by the supplier. The TCS provisions are applicable to all e-commerce operators who are registered under GST and are required to collect tax at the rate of 1% on the net value of taxable supplies made through their portal. In this article, we will discuss the procedure of TCS in GST Rule and its standard compliance.
The following is the procedure of TCS in GST Rule.
The ECO is required to get registered under GST if the aggregate turnover exceeds Rs 20 lakhs. In the case of reverse charge mechanism (RCM), the supplier is required to register under GST if the aggregate turnover exceeds Rs 20 lakhs. The ECO has to collect tax at the rate of 1% on the net value of taxable supplies made through their portal.
The ECO is required to collect TCS at the rate of 1% on the net value of taxable supplies made through their portal. The TCS collected by the ECO is required to be deposited to the government within 10 days from the end of the month in which the TCS is collected.
The ECO is required to issue a certificate to the supplier within 5 days from the date of deposit of TCS. The certificate shall contain the details of the transaction, the amount of TCS collected, and the amount deposited to the government.
The ECO is required to file GSTR-8 on the 10th of the following month. The GSTR-8 is a monthly return that contains the details of the supplies made through the portal, the amount of TCS collected, and the amount deposited to the government. The ECO is required to furnish the details of the TCS certificate and the amount of TCS collected in the GSTR-8.
The following are the standard compliance requirements of TCS in GST Rule.
The ECO is required to maintain a record of the supplies made through their portal, the amount of TCS collected, and the amount deposited to the government. The record should be kept for a period of 8 years from the end of the financial year in which the supply was made.
The ECO is required to issue a certificate to the supplier within 5 days from the date of deposit of TCS. The certificate shall contain the details of the transaction, the amount of TCS collected, and the amount deposited to the government.
The ECO is required to file GSTR-8 on the 10th of the following month. The GSTR-8 is a monthly return that contains the details of the supplies made through the portal, the amount of TCS collected, and the amount deposited to the government. The ECO is required to furnish the details of the TCS certificate and the amount of TCS collected in the GSTR-8.
The TCS collected by the ECO is required to be deposited to the government within 10 days from the end of the month in which the TCS is collected.
In conclusion, TCS is a tax collected by an ECO from the consideration received by the supplier. The TCS provisions are applicable to all e-commerce operators who are registered under GST and are required to collect tax at the rate of 1% on the net value of taxable supplies made through their portal. The procedure of TCS in GST Rule involves registration, collection of TCS, issuance of TCS certificate, and filing of GSTR-8. The standard compliance requirements of TCS in GST Rule involve record keeping, issuance of TCS certificate, filing of GSTR-8, and payment of TCS.
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