What is the Full Form of TCS in GST?
The TCS Full Form in GST is Tax Collected at Source. The GST introduced Tax Collected at Source (TCS) to increase tax collection and base. It collects tax at the source rather than sellers submitting it.
Understanding GST TCS
GST TCS collects tax from specified supplier early in the transaction cycle to prevent tax dodging. This ensures the government receives GST even if the merchant fails to submit. To reduce default and payment delays, government collects tax at source. This enhances tax collection and administration.
Applicability of TCS
TCS covers certain e-commerce vendors. E-commerce operators collect TCS from sellers upon payment. TCS applies to e-commerce sales, except for GST-registered businesses selling above Rs. 50,000. GST TCS is 1%. The supplier and recipient’s locations determine whether this 1% is CGST, SGST, or IGST. Seller’s selling price minus GST is the net value of taxable supply, which determines TCS.
Deposit/Collection Mechanism
Online retailers must collect TCS from sellers at sale settlement. TCS is due to the government by the 10th of next month. Taxes are timely collected and paid.
Seller Registration:
Sellers and e-commerce enterprises must register for GST. This simplifies TCS collection and deposit and ensures compliance. Sellers’ tax deposits are deducted by e-commerce providers. GST reports let sellers claim TCS deductions as input tax credit.