TCS under Section 52 is tax collected at source: the e-commerce operator (Amazon, Flipkart and so on) holds back a small percentage of the net value of taxable supplies you make through it, and deposits it with the government. CBIC's TCS flier explains that the operator pays the supplier the price less the tax. The rate for intra-state supplies was cut to 0.25% from 0.5% by notification 15/2024 dated 10 July 2024. This is general information, not tax advice.
How does TCS work on a sale?
CBIC's flier gives an example from the original 1% rate: a product sold for ₹1,000 through an operator means the operator deducts tax of 1% of net value, ₹10. That 1% was the 2017 rate and is not the current one. At 0.25% CGST on an intra-state ₹1,000 net sale, the CGST part would be ₹2.50; the state part is a separate figure, and the total depends on rates we did not confirm from a primary page.
"Net value" means supplies less returns, so refunded orders reduce it. See your own payout breakdown, and our entry on settlement value.
When does the operator deposit it, and how do I see it?
The flier says the operator must deposit the collected tax by the 10th of the following month, and file monthly Form GSTR-8 by the 10th. The details are shown electronically to each supplier on the GST portal. Check your credit under the GST portal's TCS credit section, and claim it against your liability. Exact screen names are not covered by the flier, which refers to the older GSTR-2A.
Who is covered?
CBIC's flier says Section 52 applies to taxable supplies made through the operator where the operator collects the payment. So if a customer pays you directly on your own website, no operator collects TCS on that sale. If you sell on a marketplace that collects the payment, TCS applies. Check each platform's settlement report to see the line.
What if my TCS credit is missing?
First check whether the operator filed GSTR-8 for that month; the flier says the operator files it by the 10th of the next month. If it is filed and your credit is still absent, raise it with the platform's seller support with your GSTIN and the month.
TCS compared with TDS
TCS is GST and is collected by the operator under Section 52. Income-tax TDS is a different deduction: see TDS 194-O. For how GST applies to the fees the platform charges, see GST on marketplace fees.
Blooprint, a Bengaluru e-commerce agency, supports sellers through Amazon account management. Please confirm tax treatment with your chartered accountant.