Notification No. 52/2018 – Central Tax Explained

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Notification No. 52/2018 – Central Tax: Seeks to notify the rate of tax collection at source (TCS) to be collected by every electronic commerce operator for intra-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 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 half per cent. of the net value of intra-State taxable supplies made through it by other suppliers where the 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. 52/2018 – Central Tax

Q1: What is Notification No. 52/2018 – Central Tax?

Answer:
It is a GST notification issued on 20 September 2018 that notified the TCS rate of 0.5% for intra-State supplies made through e-commerce operators.

Q2: Under which section was this notification issued?

Answer:
It was issued under Section 52(1) of the CGST Act, 2017. 52

Q3: What is the TCS rate under this notification?

Answer:
The TCS rate is:
0.5% CGST on intra-State supplies. 52

Q4: Who must collect TCS under GST?

Answer:
Every electronic commerce operator who:
Collects payment for supplies made through its platform.

Q5: Does this apply to inter-State supplies?

Answer:
No.
This notification applies only to intra-State supplies.
Separate IGST notification applies for inter-State TCS.

Q6: What is meant by net value of taxable supplies?

Answer:
It is:
Total taxable supplies
minus
Supplies returned during the month.

Q7: Is TCS a tax cost to the seller?

Answer:
No.
TCS is:
Collected by the operator
Deposited with the government
Credited to the seller’s electronic cash ledger

Q8: How does a seller claim TCS credit?

Answer:
The amount appears in:
Seller’s GST electronic cash ledger
Can be used to pay GST liability

Q9: What happens if the operator fails to collect TCS?

Answer:
The department may:
Demand TCS amount
Charge interest
Impose penalties

Q10: Is TCS applicable to services sold online?

Answer:
Yes.
If:
The service is supplied through an e-commerce operator
Payment is collected by the operator

Q11: Is TCS applicable if payment is made directly to the seller?

Answer:
No.
TCS applies only when:
The operator collects the consideration.

Q12: Do small sellers also face TCS deduction?

Answer:
Yes.
TCS applies regardless of seller turnover if:
Supplies are made through an e-commerce platform.

Q13: What return is filed for TCS under GST?

Answer:
E-commerce operators must file:
GSTR-8 for TCS reporting.

Q14: How often must TCS be deposited?

Answer:
TCS must be:
Collected monthly
Deposited with the government
Reported in monthly GSTR-8 return

Q15: Who should take professional help for GST TCS compliance?

Answer:
You should consult an expert if:
You sell through e-commerce platforms
You face TCS mismatches
Your cash ledger shows unexplained balances
Get help with Finodha GST Compliance:
https://finodha.in/gst-compliance/