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TCS under GST Calculator

Estimate the 0.5% GST Tax Collected at Source (TCS) on covered e-commerce supplies. Enter taxable sales and returns to calculate the net value and estimated deduction.

Exclude GST and exempt sales.

Value of goods returned this month.

Understanding TCS under GST (Section 52)

The rapid rise of e-commerce revolutionized business in India, but it also created a massive loophole for tax evasion. Many sellers were registering on platforms like Amazon, Flipkart, and Swiggy, making significant sales, but "forgetting" to declare this income to the government. To plug this revenue leak, the government introduced the concept of Tax Collected at Source (TCS) under Section 52 of the CGST Act.

Under Section 52, an e-commerce operator that is required to collect TCS collects the notified amount on the net value of covered taxable supplies made through its platform. The currently notified total rate is 0.5%. This calculator gives an estimate from the sales and returns you enter; check the operator's statement and current GST guidance for the actual amount.

Who is an E-Commerce Operator (ECO)?

An E-Commerce Operator is any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce. Examples include:

  • Online marketplaces like Amazon, Flipkart, Myntra.
  • Food delivery apps like Zomato, Swiggy.
  • Ride-hailing services like Ola, Uber.

If you sell your own products on your own website (e.g., using Shopify to build a direct-to-consumer brand), you are NOT an ECO for the purpose of Section 52, and no TCS is required to be collected on your own sales.

How is GST TCS Calculated?

The currently notified total rate is 0.5% of the net value of taxable supplies covered by Section 52. The split depends on whether the supply is intra-state or inter-state:

  • Intra-State (Same State): 0.25% CGST and 0.25% SGST or UTGST.
  • Inter-State (Different States): 0.5% IGST.

Crucial Rule: TCS is calculated strictly on the "Net Value of Taxable Supplies".

Net Value = Gross Taxable Sales - Sales Returns

If an ECO facilitated ₹5,00,000 worth of covered taxable supplies and customers returned ₹50,000 worth during the same month, the net value is ₹4,50,000. At 0.5%, the estimated TCS is ₹2,250. TCS is based on the net value of taxable supplies as defined under Section 52; check the operator statement for the applicable month and adjustments.

Impact on E-Commerce Sellers

As a seller, the TCS collected by the ECO is not a loss of money; it is essentially an advance tax payment. The ECO deposits this money with the government and files a monthly return called GSTR-8 by the 10th of the following month.

Once GSTR-8 is filed, the TCS amount automatically reflects in your GST portal under the "TDS and TCS Credit Received" dashboard. You must log in, review the entries, and click "Accept". Once accepted, the entire amount is transferred to your Electronic Cash Ledger. You can then utilize this cash balance to pay your monthly GSTR-3B tax liabilities or claim a refund if your cash ledger accumulates a huge balance.

Mandatory Registration

Section 24(ix) of the CGST Act originally made GST registration strictly mandatory for anyone selling through an ECO, even if their annual turnover was just ₹10,000 (well below the standard ₹40 Lakh threshold).

However, recent notifications have provided relief: Unregistered suppliers and composition taxpayers are now allowed to make intra-state (within the same state) supply of goods through ECOs, subject to certain conditions like generating an enrollment number. But for inter-state sales through an ECO, regular GST registration remains compulsory regardless of turnover.

Official references

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Frequently Asked Questions

What is the current TCS rate under GST?
The notified GST TCS rate is 0.5% in total: 0.25% CGST plus 0.25% SGST or UTGST on intra-state supplies, and 0.5% IGST on inter-state supplies. It applies to the net value of taxable supplies covered by Section 52.
Who is liable to collect TCS under GST?
Only specific e-commerce operators who facilitate the supply of goods or services (like Amazon, Flipkart, or Swiggy) are liable to collect TCS.
What is TCS under GST?
Tax Collected at Source (TCS) under GST is collected by a covered e-commerce operator on the net value of taxable supplies made through its platform by other suppliers. The currently notified total rate is 0.5%.
What is the rate of TCS?
The currently notified TCS rate is 0.5% in total: 0.25% CGST and 0.25% SGST or UTGST for intra-state supplies, and 0.5% IGST for inter-state supplies.
How is the Net Value of Taxable Supplies calculated?
The net value is calculated as the total gross value of taxable supplies made during the month minus the aggregate value of taxable supplies returned by the customers during the same month.
Do e-commerce operators have to pay TCS out of pocket?
No. The ECO collects the notified TCS amount from the amount payable to the supplier and deposits it with the government through its GSTR-8 return.
How does the seller claim the TCS?
Once the ECO files GSTR-8, the TCS amount appears in the seller’s "TDS and TCS Credit Received" dashboard on the GST portal. Upon accepting it, the money is credited to the seller’s Electronic Cash Ledger.
Is TCS applicable on exempt supplies?
TCS under Section 52 is collected on the net value of taxable supplies covered by the section. Exempt or non-taxable supplies are not included; check the applicable rules and official return treatment for zero-rated or Section 9(5) supplies.
Is GST registration mandatory for e-commerce sellers?
Generally, yes. Persons supplying goods through an ECO who is required to collect TCS must take compulsory GST registration, irrespective of their turnover. However, recent amendments provide some relief to small intra-state sellers.
What happens if sales returns exceed gross sales?
If the returns in a month are higher than the gross sales, the net taxable value becomes negative. In such a scenario, no TCS is collected for that particular month.