What TCS under section 52 is
Section 52 of the CGST Act requires an e-commerce operator (ECO) such as Amazon, Flipkart or Meesho to collect tax at source on the net value of taxable supplies made through its platform by other suppliers. The operator keeps this amount back from your payout, deposits it with the government and reports it in its monthly return, GSTR-8.
TCS is not an extra tax. It is an advance that is credited to you. Once you accept it on the GST portal, it lands in your electronic cash ledger, and you can use it to pay your GST liability or claim it as a refund.
The current rate
| Type of supply | Rate from 10 July 2024 | Earlier rate |
|---|---|---|
| Intra-state (seller and customer in the same state) | 0.25% CGST + 0.25% SGST/UTGST | 0.5% + 0.5% |
| Inter-state | 0.5% IGST | 1% IGST |
The rate was halved by Notification No. 15/2024–Central Tax, effective 10 July 2024. Statements for earlier periods will show the old 1% rate.
How the amount is calculated
TCS is calculated on the net value of taxable supplies: the value of taxable supplies made through the operator during the month, minus the value of taxable supplies returned through it in the same month. GST itself is not part of the value, and services on which the operator itself pays tax under section 9(5) are excluded.
- Sales through the marketplace: ₹6,00,000 taxable value, of which ₹1,00,000 to buyers in Maharashtra and ₹5,00,000 to other states
- Returns in October: ₹40,000, all inter-state
- Net intra-state value: ₹1,00,000 → TCS ₹250 CGST + ₹250 SGST
- Net inter-state value: ₹4,60,000 → TCS ₹2,300 IGST
- Total TCS kept back: ₹2,800
If returns in a month are more than sales (common in festive-season months that follow a sale), the net value can be negative. The operator then adjusts it against later months.
How to claim the TCS credit
- Wait for the operator's GSTR-8. It is due by the 10th of the following month. Until the operator files it, the credit cannot reach you.
- Log in to the GST portal and open Returns Dashboard, then choose the TDS and TCS credit received option for the relevant month.
- Check each operator's figures against your own records and your GSTR-1 Table 14 for the same month.
- Accept the entries that are correct (or reject the ones that are wrong) and file the form.
- See the credit in your electronic cash ledger. Accepted TCS is credited there and can be used to pay tax, interest or late fees, or claimed as a refund of excess balance.
Do not reject an entry just because it does not match your figure to the rupee. Small differences usually come from timing (a return processed in a different month) or rounding. Reject only when the operator has reported a supply that is not yours, or a clearly wrong amount, and raise it with the marketplace's seller support.
How TCS links to GSTR-1 Table 14
From the January 2024 tax period, sellers report in Table 14(a) of GSTR-1 the net taxable value and tax of supplies made through each operator that collects TCS, against that operator's GSTIN. These supplies are already included in your B2B and B2CS tables; Table 14 only identifies which operator they went through.
The department compares three numbers for each operator and month: what you show in Table 14, what the operator reports in GSTR-8, and the TCS you accept. When all three line up, there is little to explain. When they do not, the difference usually points to a missed return, a month mix-up or a wrong state.
Which GSTIN to use
Each marketplace registers separately for TCS in every state. The GSTIN to report is the one for your state: your state code, the marketplace's PAN, then 1C and a check character. You will find it on the marketplace's TCS statement and in the TCS credit screen on the portal. Our GST tool works it out from your GSTIN automatically.
Reconciling TCS every month
A five-minute monthly check saves hours during an audit or notice:
- List, per marketplace, the net taxable value from your sales reports.
- Compare it with Table 14 of the GSTR-1 you filed.
- Compare it with the TCS credit shown on the portal (value and tax).
- Note the reason for any difference above a small tolerance, such as a late return or a cancelled order.
- Accept the credit and confirm it appears in the cash ledger.
Frequently asked questions
Is TCS the same as the GST I collect from customers?
No. The GST you collect is your own output tax, payable through GSTR-3B. TCS is a separate 0.5% (or 0.25% + 0.25%) amount the marketplace keeps from your payout and deposits in your favour. It becomes a credit you can use.
Can I use TCS to pay my GST?
Yes. Once you accept it, it is credited to your electronic cash ledger, which can be used to pay tax, interest, late fee or penalty.
What if a marketplace reported the wrong amount?
Accept the correct entries, reject the wrong one, and ask the marketplace to correct it in a later GSTR-8. GSTR-8 itself cannot be revised, but corrections can be made in later returns.
Do sellers below the GST threshold have to register because of TCS?
Sellers of goods through an e-commerce operator that collects TCS generally have to register regardless of turnover. Some service providers have relaxations. Check the current notifications, as these rules have changed over time.
Prepare GSTR-1 with Table 14 filled for each marketplace TCS GSTIN. Open GST E-commerce →
Sources and further reading
- GST Council: FAQs on TCS under GST (PDF)
- CBIC GST: Acts, rules and notifications
- GST portal (gst.gov.in)
This guide explains the law and portal procedures as they stood on the date shown above. Rates, forms and due dates change; check the official sources before filing. It is general information, not professional advice for your particular case.