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Ecommerce Companies to Deduct 1% TCS under GST from October 1

GST law has again come up with something new and crucial for all dealers/traders selling goods/services online and the e-commerce aggregators.

What’s new for eCommerce aggregators?

From now, e-commerce companies will be required to deduct and deposit 1% of transaction amount as tax. They need to deposit the tax deducted by the 10th of the next month.

Finance Ministry on Thursday notified TCS at the rate of 0.50% of the net value of intra-state sale of goods made by traders through e-commerce portals. States too are expected to notify levying 0.50% state GST (SGST) on intra-state supplies.

What’s new for traders?

With effect from Oct 1, 2018, they would get the payment after deduction of 1% tax on order amount

Note: All the traders/dealers selling goods/services online are required to register under GST, even if their turnover is less than 20 Lakhs, for claiming the tax deducted by E-commerce operator.

 

Source: livemint.com

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