TCS In GST

In GST, the obligation to collect tax at source has been placed upon Electronic Commerce Operators and no other class of suppliers.

TCS refers to the tax which is collected by the e-commerce operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the e-commerce operator. The e-commerce operator should collect the TCS at 1% from the suppliers

The TCS provisions under GST explains that an e-commerce operator is the one who is required to collect (by way of deduction) tax from the payment to be made to the suppliers of goods and services, who had supplied such goods and services using e-commerce operator’s platform.

Such amount is required to be collected on earlier of the following two events:

Time of credit of amount to the accounts of actual supplier of goods and/or services.
Time of payment of amount to such suppliers - Tax has to be collected from the amount payable or paid to the supplier, representing consideration towards the supply of goods and/or services made through it.