Rate Change for Tax Collected at Source (TCS)

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform.

Earlier, this TCS was collected at a rate of 1% (upto 9th July). However, in the recent GST Council Meeting CBIC by way of Notification No. 15/2024 dated 10.07.2024, has reduced this rate to 0.5% (from 10th July 2024).

This means for an intra-state supply TCS at 0.5% will be collected, i.e 0.25 % under CGST and 0.25% under SGST. Similarly, for a transaction between the states, the TCS rate will be 0.5%, i.e under the IGST Act.