ECO reverse TCS

As a restaurant owner, you're dealing with sales through Zomato and Swiggy, which are E-commerce Operators (ECOs).

 Here's what you need to know: Reverse Charge Mechanism As per GST laws, ECOs like Zomato and Swiggy are liable to pay tax under the reverse charge mechanism (RCM) for the supplies made through their platforms.

 TCS Deduction by ECOs As per Section 52 of the CGST Act, ECOs are required to collect TCS (Tax Collected at Source) at the rate of 1% on the net value of taxable supplies made through their platforms.

 In your case, since Zomato and Swiggy are deducting 1% TCS, it's in line with the GST regulations. Claiming TCS in Cash Ledger As a supplier (restaurant owner), you can claim the TCS deducted by the ECOs in your cash ledger.

However, you'll need to follow these steps: 1. Ensure you're registered under GST and have a valid GSTIN.

2. File your GSTR-3B return and report the TCS deducted by the ECOs.

3. Claim the TCS amount in your cash ledger by filing FORM GST PMT-09.

 Please note that you should maintain proper documentation, including invoices, payment receipts, and TCS certificates, to support your TCS claim.

GST TCS under Section 52 and income tax TDS under Section 194O are two separate deductions that often get confused. Here is how each works:

GST TCS (Section 52, CGST Act):
- The E-Commerce Operator (ECO) collects 1% TCS (0.5% CGST + 0.5% SGST for intra-state, or 1% IGST) on net taxable value of sales made through the platform
- This TCS appears in the seller GSTR-2A/2B and can be used to pay GST output liability
- The seller does NOT deduct this ,  the ECO collects it at the time of settlement and deposits it directly
- Sellers under composition scheme or with turnover below GST threshold are now exempt from ECO TCS (Notification 6/2023-CT from October 2023)

Income Tax TDS (Section 194O):
- Separate from GST TCS
- ECO deducts 1% TDS on gross payment to the seller for turnover above Rs 5 lakh per year
- This shows in the seller 26AS/AIS and is claimed as TDS credit when filing ITR

Key distinction: GST TCS reduces GST cash liability; income tax TDS reduces income tax liability. Both can apply on the same transaction.

This [GST TCS for e-commerce operators guide](https://taxgarden.in/blog/gst-on-ecommerce-operators-tcs-section-52-india-2026) covers Section 52 mechanics and how sellers reconcile TCS in their returns.