Important Keyword: Notification 02/2018 IGST TCS, GST TCS e-commerce India, IGST 1% TCS rule, Section 52 CGST TCS, GST Amazon Flipkart TCS, inter-State GST TCS compliance,
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Table of Contents
[F. No. 349/58/2017-GST(Pt.)]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 20th September, 2018
Notification No. 02/2018 – Integrated Tax: Seeks to notify the rate of tax collection at source (TCS) to be collected by every electronic commerce operator for inter-State taxable supplies
GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i)]
G.S.R. (E).— In exercise of the powers conferred by the second proviso to section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (1) of section 52 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby notifies that every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of one per cent. of the net value of inter-State taxable supplies made through it by other suppliers where consideration with respect to such supplies is to be collected by the said operator.
(Gunjan Kumar Verma)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 02/2018 – Integrated Tax
Q1: What is Notification No. 02/2018 – Integrated Tax?
Answer:
It notifies 1% TCS on inter-State taxable supplies collected by e-commerce operators 2int.
Q2: What is the TCS rate?
Answer:
1% of net value of inter-State taxable supplies 2int.
Q3: Who is required to collect TCS?
Answer:
Every electronic commerce operator (not being an agent) 2int.
Q4: Is this applicable to intra-State supplies?
Answer:
No. This notification covers inter-State supplies.
Q5: What is net value?
Answer:
Taxable supplies minus returns during the month.
Q6: Does seller need GST registration?
Answer:
Yes, sellers on e-commerce platforms must register under GST.
Register easily here:
👉 https://finodha.in/online-gst-registration/
Q7: How does seller claim TCS credit?
Answer:
TCS appears in electronic cash ledger after operator files GSTR-8.
Q8: What return does operator file?
Answer:
GSTR-8 (monthly TCS return).
Need GST compliance help?
👉 https://finodha.in/gst-compliance/
Q9: Does TCS increase tax burden?
Answer:
No. It is adjustable against GST liability.
Q10: Is TCS applicable on exempt supplies?
Answer:
No. Only taxable supplies.
Q11: What if operator fails to collect TCS?
Answer:
Interest and penalty under GST provisions may apply.
Q12: Is TCS applicable on services?
Answer:
Yes, if taxable and inter-State through ECO.
Q13: Does this apply to food delivery platforms?
Answer:
Yes, subject to nature of supply and operator model.
Q14: When was this effective?
Answer:
Effective from date specified after issuance (20 Sept 2018 notification) 2int.
Q15: How to file GST return properly with TCS?
Answer:
Ensure reconciliation between GSTR-2A, GSTR-8 and GSTR-3B.
File GST returns easily:
👉 https://finodha.in/gst-return-filing/
✅ Conclusion
Notification No. 02/2018 – Integrated Tax mandates 1% TCS on inter-State taxable supplies made through electronic commerce operators.
Both:
- E-commerce operators
- Online sellers
Must understand TCS implications to avoid penalties.
Download PDF: Notification No. 02/2018 – Integrated Tax
More Information: https://taxinformation.cbic.gov.in/
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