Notification No.: 52/2018 – Central Tax
Date of Notification: 20th September 2018
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 52(1): Tax Collection at Source (TCS) by electronic commerce operators
- Integrated GST Act: Not applicable
- CGST Rules, 2017: Not specifically amended
Summary of Notification
TCS Rate for E-Commerce Operators Notified:
The Central Government, exercising powers under Section 52(1) of the CGST Act and based on the GST Council’s recommendation, notified that electronic commerce operators, not acting as agents, shall collect Tax Collected at Source (TCS) at the rate of 0.5% of the net value of intra-State taxable supplies made through them by other suppliers, where the consideration is collected by the operator.
This notification operationalizes the TCS mechanism under GST for online platforms and establishes the prescribed rate of deduction for intra-State e-commerce transactions.
