TCS Rate Reduced to 0.25% under Section 52 – Amendment to Notification 52/2018

Notification No.: 15/2024 – Central Tax
Date of Notification: 10th July 2024

Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 52(1) – Collection of tax at source (TCS) by electronic commerce operators
• Earlier Notification Amended:
  • Notification No. 52/2018 – Central Tax, dated 20th September 2018 – Rate of TCS under GST

Summary of Notification:

1. This notification amends Notification No. 52/2018 – Central Tax, which prescribes the rate of Tax Collected at Source (TCS) under Section 52 of the CGST Act.
2. The rate of TCS has been reduced from 0.5% (half per cent) to 0.25%.
3. This reduced TCS rate applies to e-commerce operators with effect from the date of publication in the Official Gazette.
4. The amendment eases the compliance burden on e-commerce operators and sellers by lowering the rate of tax collected at source on supplies made through electronic commerce platforms.

Source: Notification No.: 15/2024 – Central Tax