E-commerce operators have a crucial compliance responsibility under GST—collecting and depositing TCS. Missing the due date can result in penalties and disrupt supplier reconciliations.

WHAT IS TCS UNDER GST?
Tax Collected at Source (TCS) under GST is governed by Section 52 of the CGST Act. It applies to e-commerce operators who collect consideration on behalf of suppliers.

Key highlights:

• Applicable to e-commerce platforms facilitating supply of goods/services
• TCS rate: 1% (0.5% CGST + 0.5% SGST or 1% IGST)
• Collected on net taxable supplies (after returns)
• Return to be filed in Form GSTR-8

DUE DATE FOR MARCH 2026

• TCS return filing (GSTR-8): 10 April 2026
• Deposit of TCS: On or before 10 April 2026

Timely filing ensures smooth credit reflection for vendors and avoids compliance issues.

WHO IS LIABLE TO COLLECT TCS?
As per GST law, the following are liable:

• E-commerce operators like marketplaces facilitating sales
• Platforms collecting payment on behalf of sellers

Example:
If an online marketplace collects ₹1,00,000 on behalf of a seller, TCS must be collected and deposited accordingly.

COMPLIANCE REQUIREMENTS
E-commerce operators must ensure:

1. Collection of TCS at applicable rates
2. Deposit of TCS within due date
3. Filing of GSTR-8 return
4. Proper reporting of supplier-wise details

This data is auto-populated in suppliers’ GST returns, helping them claim credit.

LEGAL REFERENCES

• Section 52 of CGST Act, 2017 – Governs TCS under GST
• Rule 67 of CGST Rules – Prescribes filing of GSTR-8
• CBIC Notification No. 52/2018 – Operational guidelines for TCS

These provisions ensure tax tracking in e-commerce transactions.

LATE FEES AND PENALTIES
Non-compliance can result in:

• Late fee: ₹100 per day under CGST + ₹100 under SGST (max ₹5,000 each)
• Interest: 18% per annum on delayed payment
• Penalty for incorrect or non-collection of TCS

Example:
Delay in filing GSTR-8 by 20 days may lead to ₹4,000 late fees plus interest liability.

PRACTICAL TIP / CA INSIGHT
TCS reconciliation is a common challenge for e-commerce businesses.

Practical tips:

• Reconcile supplier data monthly with GSTR-8
• Track returns and cancellations carefully (impact net taxable value)
• Ensure correct GSTIN mapping of sellers
• Automate reporting to avoid manual errors

FAQ SECTION

1. Is TCS under GST applicable to all online sellers?
   No, it is applicable only to e-commerce operators, not individual sellers.
2. Can suppliers claim TCS credit?
   Yes, the TCS amount is reflected in their electronic cash ledger.
3. What is the threshold for GST TCS?
   There is no minimum threshold—TCS applies to all taxable supplies through e-commerce platforms.
4. What happens if GSTR-8 is not filed?
   Late fees and penalties apply, and suppliers may face reconciliation issues.
5. Is TCS applicable on exempt supplies?
   No, TCS is applicable only on taxable supplies.

CONCLUSION
The due date of 10 April 2026 for GST TCS compliance is critical for e-commerce operators. Proper collection, timely deposit, and accurate return filing ensure seamless compliance and avoid penalties.

For expert guidance on this topic, contact your tax professional today.