Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 8-9-2017 – Introduction: This article discusses in detail about Tax collected at source (TCS) on E-commerce under GST. Query 1. TCS is to be collected on the net taxable value of such supplies in respect of which the ECO collects the consideration. Please have a look at my query below: 1) Suppose product cost is ₹ 1000 2) ECO commission: 10% ie. ₹ 100 3) ECO have to pay 2.5% ie. ₹ 25 to Payment gateway. This ₹ 25, ECO will pay from his amount as per point#2 4) Practically, ECO will pay balance ₹ 900 to seller. My question is: 1) How much TCS has to be calculated in this case and on which amount. 2) How much actual amount has to be paid to seller
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on to section 51 pertaining to Tax deduction at source. According to this, the value of supply shall be taken as the amount excluding the Central tax, State Tax, UT Tax, Integrated Tax and cess indicated in the invoice. In view of the above, 1. The value of supply is ₹ 1000/- being the aggregate value of Taxable supplies & TCS shall be collect on ₹ 1,000/- 2. The net amount payable to supplier shall be ₹ 1,060/- i.e. {(1000 + 180 (GST @18% assumed rate) – 20(2% of 1000)-100(ECO Commission)}. 3. GST rate of 12% or 18% will not have any impact on TCS amount calculation. Query2. What if our client sells product worth 1500rs. But ECO after deducting it's margin passes only 1200 to our client. So what would be supply am
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