TCS in GST

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

TCS IN GST

This provision is applicable from 1 Oct 2018

Every E Commerce Company deduct 1% TCS on payments to Dealers @ 1% and deposit it to Government

How is Sales Made through Amazon/Flipkart

Goods sold through Amazon/Flipkart do not belong to these websites

Different Dealers and shopkeepers sell their product and services to customers through these websites

These websites collect money from the customer,deduct their commission and pay balance to these dealers and shopkeepers

#### What is the change from 1 Oct 2018?

Till 30 Sep 2018,

Amazon deducted its commission and GST on commission

Amt received by DEALER = sales price - GST-Commission on GST

=1050000 - 20000 - 3600

=1026400

From 1 Oct 2018

Amazon will now Deduct 1% TCS on Sales Price

TCS Deducted=1% of 10 lacs=Rs 100000

Amazon deducted its commission and GST on commission

Amt received by DEALER = sales price - GST-Commission on GST = TCS

=1050000 - 20000 - 3600 - 10000

=1016400

#### How will Seller Adjust TCS Deducted while Paying GST?

He can reduce it from his GST Payable

Assuming he had purchased goods for 6 lacs+ 5% GST

Till 30 Sep 2018,   20000

 PARTICULARS AMT RATE GST OUTPUT GST 1000000 5% 50000 LESS INPUT GST ON PURCHASES 600000 5% 30000 ON COMMISSION 20000 18% 3600 TOTAL INPUT 33600 GST PAYABLE 16400

From 1 Oct 2018

 PARTICULARS AMT RATE GST OUTPUT GST 1000000 5% 50000 LESS INPUT GST ON PURCHASES 600000 5% 30000 ON COMMISSION 20000 18% 3600 TOTAL INPUT 33600 GST PAYABLE 16400 LESS TCS 1000000 1% 10000 NET GST PAYABLE 6400

#### What is Rate of TCS?

For Local Sales

0.5% CGST AND 0.5% SGST(Total 1%)

For Interstate Sales
1% (IGST)

#### Suppose Sales Made of 1000000.Sales Return of 300000 and TCS is to be deducted on which amount

TCS is to be deducted on Net Value of Taxable Supplies (Sales-Sales Return)

=1%*(1000000-300000)

=7000

#### What is Difference between TCS and TDS in GST?

 TDS TCS It is applicable on Payments by Govt to Different Contractors and Vendors It is applicable on E Commerce Companies Like Amazon/Flipkart It is deducted from amount due,so it is called Tax Deducted at Source Amount is first collected from customers by E commerce companies and then paid to Vendors,so it is called Tax collected at Source TDS Rate is 2% TCS Rate is 1% TDS Return Form is …… Cutoff is 250000 per contract TCS Return Form is …… No such cutoff is prescribed It is covered by Section 51 of CGST Act It is covered by Section 52 of CGST Act

### Q1

Goods Purchased as Follow

20 piece were sold online @ 50400 MRP

 PARTICULARS QTY (in kg) RATE AMT LCD SCREEN 20 45000 900000 Add CGST 6% 6% 54000 Add SGST 6% 6% 54000 TOTAL 1008000

Flikart Deducted 10% Commission on Sales Price(without tax) + 1% TCS

What is amount Received from Flipkart?

### Q2

Goods Purchased as Follows

20 piece were sold online @ 50400 MRP

Flikart Deducted 12% Commission+ GST + 1% TCS

What is amount Received from Flipkart?

Note:-

Only 2 Pieces sold in Delhi

All other interstate

4 pieces returned By customer in Mumbai

Calculate GST Payable:-