According to the latest GST notification from the CBIC, it has been cleared that the e-commerce companies now will not be collecting the TCS from the suppliers who had a turnover not exceeding INR 20 lakhs and also not registered under the GST.
The Central Board of Indirect Taxes and Customs (CBIC), recently clarified the fact in an FAQ for TCS, that any person supplying some sort of services through the e-commerce channel is now exempted from getting a compulsory registration given that his aggregate turnover does not exceed INR 20 lakhs (or INR 10 lakhs in case of specified special category states) in a particular financial year.
According to the statement by CBIC, “Since such suppliers are not liable for registration, e-commerce operators are not required to collect TCS on the supply of services being made by such suppliers through their portal.”
While in another FAQ, the CBIC stated that e-commerce operators not registered under GST but has collected TCS can fill the details in their GSTR 8 return filing under GST.
The statement for the said rule is, “E-commerce operators, who have been unable to obtain registration in the month of October 2018 but have already collected TCS for the said month, may furnish the details of TCS collected in the month of October 2018 in the first return in Form GTSR-8 to be filed after obtaining registration.”
Also, the CBIC cleared FAQ regarding the foreign company running here in India and not having physical presence can apply for appointment of an agent to get registered under TCS.
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The said rule was cleared by the CBIC by the statement, “In order to facilitate the obtaining of registration in each State/UT, the e-commerce operator may declare the Head Office as its place of business for obtaining registration in that State/UT where it does not have a physical presence.”
