What does the Section say?

Section 52 applies to Electronic Commerce Operators (ECOs) such as online marketplaces. These operators are required to collect tax at source (TCS) on supplies made through their platform by other suppliers.

The operator collects a prescribed percentage of the net value of taxable supplies and deposits it with the Government. The collected amount is reflected in the electronic cash ledger of the supplier.

The purpose is to track online transactions and ensure proper tax compliance by sellers operating through e-commerce platforms.

The operator must file periodic returns containing details of supplies and tax collected. The details furnished by the operator are matched with supplier returns to detect discrepancies.

Failure to collect or deposit TCS may lead to recovery proceedings, interest, and penalties.

1. To Whom is TCS Applicable?

TCS is applicable to Electronic Commerce Operators (ECOs) who:

• Own, operate, or manage an electronic platform for e-commerce.
• Collect consideration from customers on behalf of suppliers selling through the platform.

Examples include:

• Amazon
• Flipkart
• Myntra

The ECO is required to collect TCS on the net value of taxable supplies made through its platform.

Current TCS Rate (w.e.f. 10 July 2024):

• 0.25% CGST + 0.25% SGST = 0.50% (Intra-State Supply)
• 0.50% IGST (Inter-State Supply)

2. What is the Due Date for TCS Payment?

The TCS collected during a month must be deposited with the Government:

On or before the 10th day of the succeeding month.

Example:

• TCS collected during June 2026
• Due Date for payment: 10 July 2026

Delay in payment attracts interest under GST provisions.

3. Which Return is Required to be Filed?

The E-Commerce Operator must file:

GSTR-8

Due Date: 10th of the succeeding month.

Details reported in GSTR-8:

• Supplier-wise taxable supplies
• Returns/cancellations
• Net taxable supplies
• TCS collected
• TCS deposited with Government

Once GSTR-8 is filed, the TCS credit gets reflected in the supplier's Electronic Cash Ledger.

Example

A seller supplies goods worth ₹1,00,000 through an online marketplace. The marketplace collects TCS at the prescribed rate and deposits it with the Government. The seller can claim this amount while discharging GST liability.

Key Points

• Applicable to e-commerce operators.
• Helps monitor online sales.
• Amount collected appears in supplier's cash ledger.
• Periodic return filing is mandatory.
• Ensures transparency in digital commerce.

In One Line

E-commerce operators collect GST-related tax at source from supplies made through their platforms.