Clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple Ecommerce Operators in one transaction

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.... Sir The Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit vide Circular No. 194/06/2023-GST dated 17th July, 2023 has issued a clarification on TCS liability under Sec 52 of the CGST Act, 2017 in case of multiple E-commerce Operators in one transaction, in order to ensure uniformity in the implementation of the provisions of law across the field formations, which is annexed herewith. In exercise of powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) for the purpose of uniformity in the implementation of the Act it is instructed to follow the guidelines issued vide Circular No. 194/06/2023-GST dated 17th July, 2023 by the Government of India, Mi....

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....se of the ONDC Network or similar other arrangements, there can be multiple ECOs in a single transaction - one providing an interface to the buyer and the other providing an interface to the seller. In this setup, buyer-side ECO could collect consideration, deduct their commission and pass on the consideration to the seller-side ECO. In this context, clarity has been sought as to which ECO should deduct TCS and make other compliances under section 52 of CGST Act in such situations, as in such models having multiple ECOs in a single transaction, both the Buyer-side ECO and the Seller-side ECO qualify as ECOs as per Section 2(45) of the CGST Act. 3. In order to clarify the issue and to ensure uniformity in the implementation of the provision....