Tax collected at source, or TCS, under GST is an amount that e-commerce operators must collect from payments due to sellers on their platforms and deposit with the Government. Sellers can then use this amount to pay their own GST.
Section 52 of the CGST Act requires every electronic commerce operator, not being an agent, to collect an amount at the notified rate on the net value of taxable supplies made through it by other suppliers, where the consideration is collected by the operator. Net value means taxable supplies minus returns during the month.
The operator must register for TCS in every state where its sellers are located, regardless of turnover.
The TCS shown in the operator's GSTR-8 appears on the seller's portal, where it must be accepted. Once accepted, it is credited to the seller's electronic cash ledger and can be used to pay tax or claimed as refund. Mismatches between the seller's GSTR-1 and the operator's GSTR-8 are a common trigger for scrutiny, so reconcile platform reports with your returns every month. Rates for collection have been revised over time, so check the current notified rate.
Want your returns filed and reconciled every month without mismatch notices? Our team handles it end to end. Call or WhatsApp +91 63677 44602, or use the form below.
This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.
Share a few details and a GST expert calls you back — usually within 10 minutes during working hours.
We’ll reach you on WhatsApp or call +91 63677 44602. No spam.
WhatsApp will open with your details pre-filled — just hit send. We’ll reach you on +91 63677 44602 shortly.