GST TDS/TCS Provisions Clarified


Since TDS and TCS has become effective from 01/10/2018 which has been explained in our earlier post here still there were some points to be clarified which have been explained as follows for ready reference:


  • Foreign e-commerce operator is involved:

Where registered supplier is supplying goods or services through a foreign e-commerce operator to a customer in India, such foreign ecommerce operator would be liable to collect TCS on such supply and would be required to obtain registration in each State / UT. If the foreign e-commerce operator does not have physical presence in a particular State / UT, he may appoint an agent on his behalf.

No TCS on following:

  • TCS is not required to becollected on exempt supplies.
  • TCS is not required to be collected on supplies on which the recipient is required to pay tax on reverse charge basis
  • As per section 10(2)(d) of the CGST Act, 2017, a composition taxpayer cannot make supplies through e-commerce operator. Thus, question of collecting TCS in respect of supplies made by the composition taxpayer does not arise
  • TCS is not liable to becollected on import of goods or services.
  • Multiple e-commerce operators:

For multiple e- commerce operators, TCS is to be collected by that e-Commerce operator who is making payment to the supplier for the particular supply happening through it


No TDS deduction in following cases:

  • Exempt supplies
  • Supplies on which no GST leviable
  • Where any amount was paid in advance prior to 01.10.2018 and the tax invoice has been issued on or after 01.10.18, to the extent of advance payment made before 01.10.2018.
  • Where the tax is to be paid on reverse charge by the recipient i.e. the deductee.
  • Where the payment is made to an unregistered supplier


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