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TCS IN GST
This provision is applicable from 1 Oct 2018
Every E Commerce Company deduct 1% TCS on payments to Dealers @ 1% and deposit it to Government
How is Sales Made through Amazon/Flipkart
Goods sold through Amazon/Flipkart do not belong to these websites
Different Dealers and shopkeepers sell their product and services to customers through these websites
These websites collect money from the customer,deduct their commission and pay balance to these dealers and shopkeepers
What is the change from 1 Oct 2018?
Till 30 Sep 2018,
Amazon deducted its commission and GST on commission
Amt received by DEALER = sales price - GST-Commission on GST
=1050000 - 20000 - 3600
=1026400
From 1 Oct 2018
Amazon will now Deduct 1% TCS on Sales Price
TCS Deducted=1% of 10 lacs=Rs 100000
Amazon deducted its commission and GST on commission
Amt received by DEALER = sales price - GST-Commission on GST = TCS
=1050000 - 20000 - 3600 - 10000
=1016400
How will Seller Adjust TCS Deducted while Paying GST?
He can reduce it from his GST Payable
Assuming he had purchased goods for 6 lacs+ 5% GST
Till 30 Sep 2018, 20000
| PARTICULARS | AMT | RATE | GST |
| OUTPUT GST | 1000000 | 5% | 50000 |
| LESS INPUT GST | |||
| ON PURCHASES | 600000 | 5% | 30000 |
| ON COMMISSION | 20000 | 18% | 3600 |
| TOTAL INPUT | 33600 | ||
| GST PAYABLE | 16400 |
From 1 Oct 2018
| PARTICULARS | AMT | RATE | GST |
| OUTPUT GST | 1000000 | 5% | 50000 |
| LESS INPUT GST | |||
| ON PURCHASES | 600000 | 5% | 30000 |
| ON COMMISSION | 20000 | 18% | 3600 |
| TOTAL INPUT | 33600 | ||
| GST PAYABLE | 16400 | ||
| LESS TCS | 1000000 | 1% | 10000 |
| NET GST PAYABLE | 6400 |
What is Rate of TCS?
For Local Sales
0.5% CGST AND 0.5% SGST(Total 1%)
For Interstate Sales
1% (IGST)
Suppose Sales Made of 1000000.Sales Return of 300000 and TCS is to be deducted on which amount
TCS is to be deducted on Net Value of Taxable Supplies (Sales-Sales Return)
=1%*(1000000-300000)
=7000
What is Difference between TCS and TDS in GST?
| TDS | TCS |
|
It is applicable on Payments by Govt to Different Contractors and Vendors |
It is applicable on E Commerce Companies Like Amazon/Flipkart |
| It is deducted from amount due,so it is called Tax Deducted at Source | Amount is first collected from customers by E commerce companies and then paid to Vendors,so it is called Tax collected at Source |
| TDS Rate is 2% | TCS Rate is 1% |
|
TDS Return Form is …… Cutoff is 250000 per contract |
TCS Return Form is …… No such cutoff is prescribed |
| It is covered by Section 51 of CGST Act | It is covered by Section 52 of CGST Act |
Q1
Goods Purchased as Follow
20 piece were sold online @ 50400 MRP
| PARTICULARS | QTY (in kg) | RATE | AMT |
| LCD SCREEN | 20 | 45000 | 900000 |
| Add CGST 6% | 6% | 54000 | |
| Add SGST 6% | 6% | 54000 | |
| TOTAL | 1008000 |
Flikart Deducted 10% Commission on Sales Price(without tax) + 1% TCS
What is amount Received from Flipkart?
Answer
Q2
Goods Purchased as Follows
20 piece were sold online @ 50400 MRP
Flikart Deducted 12% Commission+ GST + 1% TCS
What is amount Received from Flipkart?
Note:-
Only 2 Pieces sold in Delhi
All other interstate
4 pieces returned By customer in Mumbai
Calculate GST Payable:-
Answer
