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?

[Sadanand Bulbule]

TCS @ 1% is to be collected on the net taxable value of supply. FORM GSTR- 8 is to be filed by the ECO by the 10th of the following month. There is no special field to report TCS in GSTR-1.

[KASTURI SETHI]

Also see C.B.I. & C. Circular No. 246/03/2025-GST, dated 30-1-2025

[Shilpi Jain]

Is it a case that for everysupply 30% is collected by ECO? or a case where, for 30% of the supplies 100% money is collected by ECO?

Are you the ECO or the supplier?

AI Summary

TCS collection on e commerce supplies: ECO must collect TCS on net taxable value and report it in the monthly return. TCS on supplies made through an E Commerce Operator is to be collected by the ECO on the net taxable value of supplies made through it; an expert response stated TCS at 1% applies. The ECO must report and deposit TCS via its monthly return by the tenth of the following month (Form GSTR 8). Suppliers report the underlying supplies in their normal outward supplies return (Form GSTR 1), with no special field for ECO collected TCS. A departmental circular was referenced and factual clarifications were noted.