GST Registration for E-commerce Collecting TCS under GST

Last Updated at: Sep 07, 2020
GST Registration for E-commerce Collecting TCS under GST
E-commerce operators will have to register themselves in every state where their suppliers are located for collection of TCS and foreign companies can appoint an ‘agent’ on their behalf for securing such registration, the CBIC has said.


The e-commerce companies are not liable to collect TCS on supplies made by entities with turnover not exceeding Rs 20 lakh and are not registered under GST, the CBIC has said.


A statement has been included under GST law for all the e-commerce business aggregators. Internet business aggregators are made accountable under the GST law for deducting and saving duty at the rate of 1% from every one transaction. Any vendors or dealers selling products or services online would get the payment after the conclusion of 1% charge. It is a huge change which would expand a great deal of consistency and organization cost for online aggregators like Amazon, Flipkart, Snapdeal and so forth. They would need to pay the tax deducted by the tenth day of the following month.

Every one of the brokers or vendors selling merchandise or administrations online would need to get enrolled under GST regardless of whether their turnover is under 20 Lakhs for guaranteeing the duty deducted by Ecommerce administrators. As per the proviso, GST registration has been made obligatory uniquely for those internet business proprietors who bear the obligation to gather Tax Collected at Source (TCS) under GST. Subtleties identified with GST enlistment for internet business administrators in charge of TCS and TDS are talked about in the article.

Duty to Collect TCS

Under the Goods and Services Tax law, the duty to gather and pay tax lies on e-commerce aggregators. The rate of TCS is 1% of each exchange made. The online brokers of merchandise and enterprises will get their payment after the duty is accumulated and credited.

To guarantee this Tax Collected Source, every online dealer selling products and enterprises are required to get enrolled under GST paying little respect to their turnover.

Notwithstanding, any provider of services with a turnover of not as much as Rs. 20 lakhs who does not utilise the online business platform is exempted from getting enrolled under GST.

Get Online GST Registration

Duty to Deduct TDS

Under the Goods and Services Tax law, the rate of Tax Deducted at Source (TDS) is 1% of each payment made to providers.

The elements in charge of deducting TDS are:

  •       Central or State Government foundation or division
  •       Government offices
  •       Local authorities
  •       An authority, board or body – which is

o   Set up by a state assembly or parliament Act, or

o   Recognised by a government

–          With the cooperation of 51% or more by method for value or control.

  •       The society built up by Central Government, State Government, or nearby experts
  •       Public Sector Undertakings according to the most recent notice

GST Registration

So as to deduct or collect TDS or TCS, the accountable substances are required to get enlisted by following these means:

  1. Obtain Form GST REG-07 by electronic means through the GST Portal.
  2. Fill it with subtleties and properly sign it through EVC.
  3. Submit the form to a GST official either in hand or from a Facilitation Centre which the Commissioner has informed. The registration will be confirmed and allowed by the best possible official
  4. A registration certificate will be issued in 3 working days by the proper officer in Form GST REG-06.

Registration Cancellation

If an individual never again stay legally responsible to gather TCS or deduct TDS, at that point the correct official will determine it and drop the registration online through Form GST REG-08.

GST Registration for Online Information Suppliers Outside India

Online Information and Database Access or Retrieval (OIDAR) services are those whose merchandise is mechanised and conveyance has interceded online. There is insignificant human mediation in these administrations and they can’t be conveyed without the utilization of data innovation.

Few OIDAR service providers are:

  •       Cloud Service Providers
  •       Online Game Providers
  •       Internet Advertising
  •       Providers of digital books, music, films, software applications, etc.
  •       Providers of recoverable or unrecoverable information and data in electronic form
  •       Providers of online services, for example, legal information, money related information, trade insights, social networking, and so forth

Some of the non-OIDAR service providers are:

  •       Suppliers of products who procedure arranges electronically
  •       Suppliers of books, magazines, newspapers and so forth.
  •       Advocates and counsellor who provide services using email
  •       Educational and Professional course instructors who provide content online
  •       Offline computer equipment repair services providers
  •       Repair service providers for software and hardware via the internet
  •       Newspapers, magazines, posters, television advertisers
  •       Internet backbone service providers and internet access services providers

Overseas OIDAR service providers can register under GST by following the below-provided steps:

  1. Get Form GST REG-10 from the GST portal
  2. Submit the form to a GST official. The registration will be confirmed and conceded by the explicit official under specific conditions.
  3. A registration certificate will be issued by the officer within 3 working days of submission.

TDS principle will help in accomplishing precision in the activities of government contracts and tax consistence. Online e-commerce vendors would need to roll out specific improvements in their online payment procedure and finance or administration thus to fuse the TCS principle integrated under GST.

A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.