Question 1

What is TCS under GST?

Accepted Answer

TCS (Tax Collected at Source) under GST is 1% tax collected by e-commerce operators like Amazon and Flipkart on the net taxable value of sales made through their platform. It comprises 0.5% CGST and 0.5% SGST for intra-state sales, or 1% IGST for inter-state sales under Section 52 of the CGST Act.

Question 2

Who deducts TCS on Amazon and Flipkart sales?

Accepted Answer

Amazon, Flipkart, Meesho and other e-commerce operators deduct TCS at 1% before making payment to sellers. The deducted TCS is deposited with the government and appears in the seller's GSTR-2A and GSTR-2B for credit claim.

Question 3

How do I claim TCS credit in GST returns?

Accepted Answer

TCS deducted by e-commerce operators is auto-populated in your GSTR-2B. You can claim this as credit in your electronic cash ledger while filing GSTR-3B. The credit reduces your net GST liability for the period.

Question 4

Is GST registration mandatory for e-commerce sellers?

Accepted Answer

Yes. GST registration is mandatory for all e-commerce sellers regardless of turnover under Section 24 of the CGST Act. Even if you sell goods worth ₹1 on Amazon or Flipkart, you must register. The normal ₹20 lakh threshold does not apply.

Question 5

What is the TCS rate under GST in 2026?

Accepted Answer

The TCS rate is 1% of the net taxable value — 0.5% CGST plus 0.5% SGST for intra-state sales, or 1% IGST for inter-state sales. This rate is fixed under Section 52 of the CGST Act.

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💡 TCS Under GST - Section 52 (2026)