Posted on by abhishek

There are cases in which the ECO does not provide invoicing solution to the seller. In such cases, invoice is generated by the seller and received by the buyer without ECO getting to know about it. The payment flows through the ECO. In such cases, on what value is TCS to be collected? Can TCS be collected on the entire value of the transaction

  1. Section 52(1) of the CGST Act, 2017 mandates that TCS is to be collected on the net taxable value of such supplies in respect of which the ECO collects the consideration.
  2. The amount collected should be duly reported in GSTR-8 and remitted to the Government.
  3. Any such amount collected will be available to the concerned supplier as credit in his electronic cash ledger.

(FAQ 21: E-COMMERCE)