TCS under Section 52 and Related Disclosures in Case of Partial Collection of Consideration by ECO

[JOYDEB BHATTACHARYA]

In a transaction where 100% of the supply is made by the supplier through an E-Commerce Operator (ECO), only 30% of the consideration is collected by the ECO, while the remaining 70% is collected directly by the supplier from the recipient. The total transaction value is ?100, and the applicable GST rate on the supply is 18%. The TCS rate is 0.5%.

Based on the above scenario, please clarify the following:

1. What would be the amount of TCS to be collected and deposited by the ECO?
2. How should the ECO disclose this transaction in Form GSTR-8?
3. How should the supplier report this transaction in Form GSTR-1?

AI Summary

E-commerce operator must collect 1% TCS on net supply value and file GSTR-8 by 10th monthly deadline In a transaction where an e-commerce operator (ECO) collects only 30% of the consideration while the supplier collects the remaining 70% directly from the recipient, the ECO must collect TCS at 1% on the net taxable value of the supply. The ECO is required to file Form GSTR-8 by the 10th of the following month, but there is no specific field in Form GSTR-1 for reporting TCS. Clarifications also reference relevant GST circulars for further guidance. The discussion highlights the need to determine whether the partial collection applies to each supply or to a portion of supplies and whether the query originates from the ECO or the supplier.