What is TCS full form ? | In easy way defines the TCS from 2018

In GST, as all, we give information of TDS full form in our past blog TDS means ‘Tax Deducted At Source’ vested on the recipient of goods and services or both.

In our today’s article, given information about TCS full form, that means ‘Tax Collected At Source’ vested on Electronic Commerce Operator.

 All TCS full form information and other further concepts, we will see an overview in below summary information which we are providing.

What is the TCS full form of tax? 

The tax collected by the ‘Electronic Commerce Operator‘ from the supplier of the goods and services or both must be payable to the Government.

Electronic Commerce Operator:

A person who has owns a digital or electronic platform of selling and buying of the goods and services or both.

In short, the operator of the digital platform for transaction of goods and services or both.

For example, we are well known for Amazon, Flipkart, Jabong, Club Factory, and Uber, and many more.

Electronic commerce operator

Electronic Commerce:

The transactions of goods and services or both through the electronic and digital platforms.

Rate of TCS full form:

The tax collected at the source rate for this is often applicable, not exceeding 1% on the net value of the taxable supplies of goods and services or both supply by the other suppliers.

  • Net Value:

The net worth of Taxable Supplies = {(Aggregate value of Taxable supplies of goods + services) – (Section 9(5) services)} – (Aggregate value of Returned Taxable Supplies of Goods + Services)

Now it is compulsorily required to the electronic commerce companies to collect the tax at 1% on taxable supplies of goods and services or both by the other suppliers.

  • Rates on CGST at 0.5%
  • Rates on SGST at 0.5%
  • Rates on IGST at 1%

Implementation of TCS full form:

By the Government of India, Tax collected at full source form TCS and tax deducted at source (TDS) were active from the 1st October 2018.

What is TCS full form ? | In easy way defines the TCS from 2018

Time Limit for Payment of Tax:

The collected tax from the supplier is mandatory to pay the Government within ten days from the end of the month after the collection was made.

Manner of payment:

The tax paid by debiting the e-cash ledger and electronic liability register shall be credited consequently.

How to claim TCS credit:

Supplier of the goods and services or both the collected amount in e-ledger that was reflected by e-commerce operator in the statement supplier can claim it.

Purpose of TCS (TCS Full Form):

Nowadays, a significant development of e-commerce operator they are directly reaching to the small traders which are not traceable by the Government. 

The transactions of proceeds mean goods and services between a small trader or supplier and electronic commerce operator.

The Government quickly contacts this e-commerce operator, so the govt gives responsibility to collect a small amount as tax from those short-sellers.

This method is an easy process for the Government to track all small trader who sellout their goods and services and those who out of the tax liability.

This process enhances the compliance procedure of GST by disclosing business transactions, take a refund, and by filing on time returns.

Mandatory Registration for Ecommerce Operator:

E-commerce operator is the only responsible person (not an agent) to collect tax from the small seller of an electronic platform.

So, for fulfilling this concern, the electric commerce operator is mandatorily liable to get Gst Registration as per the terms of registration.

Threshold limit of TCS Full Form:

Full form collected tax at source as per we seen TDS having threshold limit at 2.5 lakhs, but there is no such limit for TCS specify in the act. 

Claim for Refund:

After collecting tax and adjusting, all liabilities of the Government claimed for the remaining amount as a refund.

GST returns filed by E-commerce Operator:

GST returns to be submitted by the electronic commerce operator there is two types of returns are as follows:

  • GSTR – 8: Monthly Return

E-commerce furnished monthly statement electronically as

  • Outward supplies or goods and services.
  • Returns of goods and services.
  • Outward Supplies:

Supply of goods and services or both through barter, exchange, sale, transfer, lease, or rent.

GSTR 8 is a monthly return filed by the e-commerce operator to the Government in the month where tax collected within ten after that.

  • GSTR – 9B: Annual Return

Electronic commerce shall make a furnished annual statement by electronic means they areas:

  • Outward supplies or goods and services.
  • Returns of goods and services.

Annual return filed by e-commerce operator before 31st December at the end of the financial year. 

Applicability TCS Full Form:

  • There is no applicability in the case of reverse charge mechanism under the supply made for pay tax.
  • In case no consideration supply collected by the operator, he shall not collect tax at source.
  • In the case of import, which is not in the purview of GST, so no collection of tax collected at source is an application.
  • Composite dealer does not make supply through electronic commerce platform. Hence composite dealers not applicable in the ambit of TCS.
  • Exempted Supplies is not relevant in the purview of TCS.
  • For the applicability of foreign e-commerce, the operator registered in GST in India. Still, in case there is no place of business in India, he must go through the agent.
  • There is require for e-commerce operators to facilitate multiple registrations in various states and union territories.
  • If the e-commerce operator already has GSTIN. Since he needs to get separate registration for TCS again.
  • Suppliers of goods have no threshold exemptions for their supplies through e-commerce platforms; they have a compulsion for taking records.
  • In the case of gold, TCS usually applied. 



What is the TCS tax?

The tax collected by seller (Electronic Commerc Operator) from the buyer who paids this tax under section 206C and it made payable to the Government.

Who liable For TCS?

TCS tax liable to those person who is the owner of electronic commerce platform and paid tax collected from the customer. It means person liable who is the seller tax received from the buyer of the goods.

Is TCS deducted on GST amount ?

The operatot of e-commerce platform shall be liable for deduction of TCS at 1% on IGST, 0.5% on CGST and 0.5% on SGST.

Is TCS Refundable ?

It can be refundable after collecting of taxes and amount settled of all liabilities of the Government can claim for remaining amount as a refund.

is mandatory for registration for TCS ?

In TCS tax electronic commerce operator only responsible person to collect tax. So, it is mandatroy for him to get registered.

Spread the love
Scroll to Top