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

Without GST Direct sales and Sales through Amazon.jpg

 

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

 

Without GST Direct sales and Sales through Amazon till 30 sep.jpg

 

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

Q 1 GOODS PURCHASED AS FOLLOWS.jpg

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?

Answer

A 1  Till 30 Sep 2018.jpg

 

Q2

Goods Purchased as Follows
Q2 Goods Purchased As Follows.jpg

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:-

Answer

A2 sales local, interstate, return.jpg

 

A2 Till 30 Sep 2018.jpg

 

A2 FROM 1 OCT 2018.jpg

 

  1. GST - Goods and Services Tax, India
  2. GST Computation & Accounting

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.