# What Is TCS Under GST? The Tax E-Commerce Platforms Collect **Category:** GST | **Published:** 2026-06-26 | **Last reviewed:** 2026-06-26 | **Author:** Mrs. Swapna Patel TCS (Tax Collected at Source) under GST is the tax an electronic commerce operator (ECO) such as Amazon, Flipkart or Zomato deducts from the payments it passes to sellers on its platform. It is governed by Section 52 of the CGST Act. The ECO collects TCS on the net value of taxable supplies made through it, deposits it with the government, and reports it in a monthly GSTR-8 return. The rate was reduced from 1% to 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST) with effect from 10 July 2024 under Notification 15/2024-Central Tax. The collected amount appears in the seller electronic cash ledger and is set off against the seller own GST liability, so it is an advance, not an extra tax. Sellers supplying taxable goods through an ECO must register for GST regardless of turnover under Section 24(ix). > **Myth:** Selling on Amazon or Flipkart means the platform handles your GST, so you have nothing more to pay. > > **Fact:** The platform only collects 0.5% as TCS under [Section 52 of the CGST Act](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) as an advance against your own GST; you still register, file and settle your tax. ## What is TCS under GST? > **Short answer:** TCS is tax an [electronic commerce operator](/answers/what-is-a-pakka-bill) deducts from a seller payment on the net value of taxable supplies, under [Section 52 of the CGST Act](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act). When you sell through a marketplace, the platform receives the customer money and pays you after its commission. Section 52 requires the platform to also hold back a small slice of tax before it pays you, and send it to the government in your name. Net value means your taxable sales through the platform minus any returns in that month. It is an advance on your own tax, not a charge the platform absorbs. ## What is the TCS rate, and when did it change? > **Short answer:** The combined rate is 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024 under [Notification 15/2024-Central Tax](https://cbic-gst.gov.in/central-tax-notfns-2024.html). - For an intra-state sale, the operator collects 0.25% CGST and 0.25% SGST; for an inter-state sale, 0.5% IGST. - The cut, recommended at the 53rd GST Council meeting, was made to ease the cash held back from small online sellers. - The rate is set by notification and can change, so confirm the current figure before relying on it for a financial year. ## Who collects TCS, and who must register for it? > **Short answer:** Only the e-commerce operator collects TCS; the seller must register for GST under Section 24(ix) regardless of the ₹20 lakh/₹40 lakh threshold if supplying taxable goods through a platform. - An operator acting as an agent of the seller does not collect TCS; only true marketplace operators do. - The operator reports every collection in a monthly GSTR-8, which is what makes the credit visible to the seller. - A seller of services through an ECO has a relaxed registration position; confirm your category before assuming you must register. ## How does a seller reclaim the TCS deducted? > **Short answer:** The TCS reported in GSTR-8 auto-populates the seller [electronic cash ledger](/answers/electronic-credit-cash-ledger-section-49) and is set off against output tax, so it reduces what the seller pays in cash. - After the operator files GSTR-8, the seller accepts the amount and it lands in the cash ledger as a credit. - This matters for working capital: money the platform held back now offsets the seller monthly tax, rather than being lost. - A clean tax invoice for every platform sale is what keeps the seller GSTR filings and the TCS figures reconciled. **[Generate a GST tax invoice for your platform sales](https://hrareceipt.in/pakka-bill)** ## Primary sources - [Section 52, Central Goods and Services Tax Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Collection of tax at source by electronic commerce operators on net value of taxable supplies. - [Notification 15/2024-Central Tax dated 10 July 2024 — CBIC](https://cbic-gst.gov.in/central-tax-notfns-2024.html) — Reduces the CGST TCS rate to 0.25% (combined 0.5%) with effect from 10 July 2024, on the 53rd GST Council recommendation. - [Section 24, Central Goods and Services Tax Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Compulsory GST registration for persons supplying taxable goods through an electronic commerce operator. - [GSTR-8 return and TCS credit — GST portal](https://www.gst.gov.in) — Monthly TCS statement filed by the operator; credit auto-populates the supplier electronic cash ledger. ## Related - [Electronic cash and credit ledger — where TCS credit lands](https://hrareceipt.in/answers/electronic-credit-cash-ledger-section-49) - [What is input tax credit (ITC) — credit that offsets your output tax](https://hrareceipt.in/answers/what-is-input-tax-credit-itc) - [What is a pakka bill — the GST invoice that counts as valid](https://hrareceipt.in/answers/what-is-a-pakka-bill) --- *Source: [What Is TCS Under GST? The Tax E-Commerce Platforms Collect](https://hrareceipt.in/answers/tcs-under-gst-section-52-ecommerce) — HRAReceipt.in* *This Markdown mirror is published for AI-crawler ingestion. The canonical HTML page is the definitive version.*