As TCS has been implemented w.e.f. 01.10.2018, the Law Committee of GST Council has released FAQs on TCS under GST to discuss the major FAQs.
- TCS is not required to be collected on exempt supplies and supplies on which recipient is required to pay tax on reverse charge;
- TCS is not liable to be collected on import of goods or services;
- Registration for TCS is required in each State/UT as the obligation for collecting TCS would be there for every intra-state or inter-State supply. To facilitate registration in each State/UT where there is no physical presence, e-commerce operator may declare the Head Office as its place of business;
- As per section 10(2)(d) of CGST Act, 2017, a composition taxpayer cannot make supplies through e-commerce operator. Thus, composition taxpayer not required to collect TCS;
- Where registered supplier is supplying goods or services through a foreign e-commerce operator to a customer in India, such foreign e-commerce 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;
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.