TCS provision

There are four basic questions which can explain the basic application of TDS as provided under GST law: Q1 Who is liable to deduct TDS under GST? Following people are responsible for deducting tax-: (a) a department or establishment of the Central or State Government, or (b) local authority, or (c) governmental agencies, or (d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council. For example: If the Finance department, Government of India, enters into a contract with Reliance then the department would be liable to deduct TDS. Q2 What is the rate of TDS to be deducted under GST? The max rate of TDS is 2% under GST, to be notified by CBIC. Q3 Is there any limit for deducting TDS under? If the total value of supply under a contract exceeds Rs 2.5 lakhs then the person/entity would be liable to deduct TDS. Q4 Time limit for payment of TDS? The deductor would be liable to make the payment of TDS by the 10th day of the next month.

As per Section 52 CGST Act , every E- operator is liable to collect TCS @ 2% from supplier on Taxable value & deposit the same to govt by 10th of every month & file the rerurn in form GSTR 8 which is being started from 1/10/2018 notify by notification 52/2018 CT by CBEC.

The TCS deducted & deposited by E-operator will be reflects in Cash Ledger of Supplier.

Note : Now the E-perator is going to pay supplier by deducting TCS & his commission from goods being supplied by Supplier