Business

Government notifies 1% tax collected at source for ecommerce players

Updated : September 20, 2018 08:17 PM IST

The Central Board of Indirect Taxes (CBIC) on Thursday has notified that every ecommerce players shall collect an amount at the rate of one percent as tax collected at source (TCS) under the Goods and Services Tax (GST).

"Every electronic commerce operator, not being an agent, shall collect an amount calculated at a rate of half percent of the net value of intra-state taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the said operator,” a notification issued by the CBIC said.

Abhishek Jain, tax partner, Ernst & Young said, "As the law had provided a levy up to one percent, the ecommerce industry was awaiting this release of the exact rate of TCS - essentially to configure it into their system."

The GST, which subsumed over a dozen local taxes, was rolled out from July 1, 2017. However, to make it simpler for businesses in the initial months of rollout, TDS/TCS of GST laws were kept in abeyance till June 30.