TCS in GST

GST - Goods and Services Tax, India
GST Computation & Accounting

E-Commerce Operators are website/apps like Flipkart and Amazon

Vendors sell their Goods to Customers through these websites.

There can be two cases:-

#### Reverse charge in GST is notified on transaction

In this case, the E-commerce company pay GST

Example 1:-

Example of Goods in E- Commerce

Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000

This was sold by Dealer Vishal Trading Company

Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company

In this case, Seller is Vishal Trading Company and Buyer is Dinesh

Neither of them pays GST

It is paid by E-Commerce Company Flipkart

#### Reverse charge in GST is not applicable (Not notified on transaction)

In this case, the vendor  pay GST

E-commerce company deducts TCS on the transaction

Example

Suppose a Customer Dinesh shops online at Flipkart and purchase a shirt for Rs 2000

This was sold by Dealer Vishal Trading Company

Flipkart deducts 10% Commission and pays Balance to Vishal Trading Company

Suppose there is no reverse charge and TCS Rate is 1%

Flipkart has to pay 1800 to Vishal Trading Company

it will charge 1% TCS on this 1800 i.e Rs 18

Hence actual amount paid to Vishal Trading company=1800 - 18 = Rs1782

#### Summary

Those transactions which are not covered in Reverse Charge in GST will be covered here

 COVERED IN REVERSE CHARGE NOT COVERED IN FLIPKART pays GST in this case on Sales Amount Flipkart Does not pay GST in this Case on Sales Amount No TCS is applicable in this case TCS at 1% is to be deducted from Vendor Vendor does not pay GST Vendor pays GST and Deducts TCS Amount

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