ECO reverse TCS

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45 Points Joined September 2022
I am a restaurant owner in most of the sales through Zomato and Swiggy (ECO) in which the ECO is liable to pay tax under Reverse Charge and during payment they deduct tcs 1%
Can they deduct tcs if yes then can I claim tcs in cash ledger.
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On 02 January 2025 at 21:08 Report
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Master in Accounts & high court Advocate
9505 Points Joined December 2011

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.

 

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On 02 January 2025 at 21:51


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