Glossary
TCS (Tax Collected at Source)
Definition
Tax that an e-commerce operator collects on the net value of taxable supplies made through its platform and deposits against the seller's GSTIN.
TCS under section 52 of the GST law is collected by the marketplace, not by you, and shows up in your electronic cash ledger where it can be used against your liability.
The practical work is reconciliation: what the marketplace reported must match your own sales records. The applicable rate has been revised since introduction, so confirm the current rate rather than relying on a figure you remember.
Related terms
- SettlementThe payment a marketplace makes to a seller for a period of orders, after deducting commissions, shipping, fees, promotions, penalties and tax collected at source.
- GSTINThe 15-character Goods and Services Tax Identification Number issued to a registered business, unique per state registration.