Section 52 of the CGST Act, 2017 mandates e-commerce operators to collect TCS (Tax Collected at Source) from suppliers selling goods or services through their platform.
The TCS collected by e-commerce operators is deposited with the government and can be claimed as input tax credit by the supplier.
The TCS rate is 1% of the net value of taxable supplies made through the e-commerce platform.
E-commerce operators are required to file GSTR-8, a monthly return, to report the TCS collected and deposited with the government.
If an e-commerce operator fails to collect or deposit TCS, they will be liable to pay interest and penalty as per the provisions of the CGST Act, 2017.
The TCS liability under Section 52 has a significant impact on e-commerce operators as they need to ensure compliance with the provisions of the Act.
E-commerce operators should also educate their suppliers about the TCS provisions and ensure that they are registered under the GST Act to avoid any non-compliance issues.