The e-commerce companies are not liable to collect TCS on supplies made by entities with turnover not exceeding ₹20 lakh and are not registered under GST, the CBIC has said. As per Goods and Services Tax (GST) provisions, beginning October 1, 2018, e-commerce companies deduct 1% tax collected at source (TCS) before making payments to their suppliers.
The Central Board of Indirect Taxes and Customs (CBIC), in a clarification to the FAQ for TCS, said GST law provides that a person supplying services through an e-commerce platform is exempted from obtaining compulsory registration provided his aggregate turnover does not exceed ₹20 lakhs (or ₹10 lakhs in case of specified special category states) in a financial year.
“Since such suppliers are not liable for registration, e-commerce operators are not required to collect TCS on supply of services being made by such suppliers through their portal,”
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