GST for E-Commerce Operators: TCS, GSTR-8 and Sellers

If you operate an e-commerce platform or sell through one, GST compliance has two distinct layers. The operator collects TCS from every seller's proceeds and remits it to the government. The seller reconciles that TCS against their own returns and claims it as credit. Getting either side wrong triggers notices, interest, and blocked credits.

This guide covers both sides of the equation: what operators must do under Section 52, and what sellers must track to keep their cash ledger accurate.

Who Is an E-Commerce Operator Under GST?

Section 2(45) of the CGST Act defines an e-commerce operator as any person who owns, operates, or manages a digital or electronic facility or platform for electronic commerce. The definition is broad and intentionally technology-neutral.

The test is functional, not technical. If your platform facilitates the supply of goods or services between a supplier and a buyer, and if any part of the consideration flows through your platform, you are an ECO under the CGST Act.

Section 52 TCS applies only where the consideration for the supply is collected by the operator. A pure classified listing site (like OLX in its original form) that does not process payment has no TCS to collect. The moment the platform collects payment on behalf of the seller, Section 52 applies.

Compulsory GST Registration for ECOs

Section 24(x) of the CGST Act mandates that every e-commerce operator required to collect tax at source under Section 52 register for GST, irrespective of turnover. An operator liable to pay tax under Section 9(5) must also register under Section 24(iv). There is no Rs 20 lakh or Rs 40 lakh threshold. A newly launched marketplace processing its first Rs 1,000 transaction must hold a valid GSTIN.

Similarly, Section 24(ix) requires persons who supply goods or services (other than Section 9(5) supplies) through an ECO that collects TCS to register regardless of turnover, except where a Government notification exempts a class of such sellers from compulsory registration. Check whether such an exemption covers you before assuming you must register.

TCS Under Section 52: Rate, Calculation, and Payment

The Current Rate

CBIC Notification No. 15/2024-Central Tax (effective July 10, 2024) reduced the TCS rate from 1% to 0.5% of net taxable supplies. Section 52(1) caps the rate at 1%.

Before July 10, 2024, the rate was 0.5% CGST + 0.5% SGST (intra-state) or 1% IGST (inter-state). The reduction halved the cash flow impact on sellers.

What Is "Net Taxable Value"?

TCS is calculated on the net value of taxable supplies. Section 52(1) defines this as:

Aggregate value of taxable supplies of goods or services (or both), other than services notified under Section 9(5), made during any month by all registered persons through the operator, reduced by the aggregate value of taxable supplies returned to the suppliers during that month.

In practice:

• Include: All taxable B2C and B2B supplies processed through the platform
• Exclude: Exempt supplies, goods returned during the same month, cancelled orders where refund was processed
• Exclude: The GST component itself (TCS is on the taxable value, not on the tax amount)

Calculation Example

A seller on Amazon makes the following supplies in June 2026:

TCS collected by Amazon:

• CGST TCS: 0.25% of Rs 9,50,000 = Rs 2,375
• SGST TCS: 0.25% of Rs 9,50,000 = Rs 2,375
• Total TCS: Rs 4,750

The seller receives Rs 9,50,000 minus Rs 4,750 = Rs 9,45,250 (before platform commission and other deductions).

At the old 1% rate, the TCS on the same transaction would have been Rs 9,500. The rate reduction freed up Rs 4,750 in working capital per month for this seller.

When Must the ECO Deposit TCS?

Under Section 52(3), the ECO must deposit the TCS collected within 10 days after the end of the month in which the collection was made. This aligns with the GSTR-8 due date under Section 52(4).

GSTR-8: The ECO's Monthly TCS Return

GSTR-8 is the return every e-commerce operator files to report TCS collected and deposited.

Filing Details

What GSTR-8 Contains

1. GSTIN of operator and return period
2. Details of supplies made through the platform - GSTIN of each supplier, taxable value, TCS collected (CGST, SGST/UTGST, IGST, Cess)
3. Amendments to details furnished in earlier returns
4. Tax deposited - details of TCS deposited through the electronic cash ledger

Late Filing Consequences

The late fee accumulates quickly. Filing GSTR-8 10 days late costs Rs 2,000 (Rs 1,000 CGST + Rs 1,000 SGST). The Rs 5,000 cap per Act is reached at 50 days, for Rs 10,000 in total. GSTR-8 was brought under Section 47(1) from 1 October 2022 (Finance Act 2022).

How TCS Credit Works for Sellers

This is where most confusion arises. The TCS collected by the operator is not a cost to the seller. It is a tax collected on the seller's behalf and deposited with the government. The seller gets credit for it. Here is the mechanism:

Step 1: ECO Files GSTR-8

When the e-commerce operator files GSTR-8 for a given month, the TCS details (broken down by each seller's GSTIN) are transmitted to the GST system.

Step 2: TCS Appears on the Seller's GST Portal

Under Rule 67(2), the TCS details furnished by the operator are made available to each registered supplier on the GST portal after GSTR-8 is filed, in the TDS and TCS credit section. TCS is not part of GSTR-2B, which deals with input tax credit.

Step 3: Credit Hits the Electronic Cash Ledger

Once the seller accepts the TCS details, the TCS amount is credited to the seller's electronic cash ledger on the GST portal (Section 52(7), Rule 67(2)). This is not the electronic credit ledger (which holds ITC). The cash ledger holds actual tax payments and refundable amounts.

Step 4: Seller Uses the Credit in GSTR-3B

When filing GSTR-3B, the seller pays the balance liability (after ITC) from the electronic cash ledger, and the TCS amount already sitting there is used for that payment. There is no separate TCS table to fill in GSTR-3B.

If the TCS credit exceeds the seller's liability for the month, the balance carries forward in the electronic cash ledger and can be used in subsequent months. The seller can also claim a refund if the excess persists.

Practical Example: Seller Claiming TCS

A seller on Flipkart has the following position in June 2026:

Without TCS credit, the seller would pay Rs 5,000 in cash. The TCS credit of Rs 3,000 directly reduces the cash outflow.

What If TCS Does Not Appear on the Portal?

This happens when the ECO has not filed GSTR-8 for that period. The seller cannot claim TCS credit until the operator files. Common reasons:

• ECO filed GSTR-8 late
• ECO reported incorrect GSTIN for the seller
• Mismatch in the supply period reported by the ECO

Contact the platform's seller support team and verify your GSTIN on the platform dashboard. The credit will appear once the ECO files or amends the return.

Section 9(5): When the ECO Pays GST Directly

Tax Rate Chart

GST Rates on ECO-Notified Services (Section 9(5))

For these services, the e-commerce operator pays GST directly, not the service provider. TCS under Section 52 does not apply to these supplies.

Restaurant Food Delivery (Swiggy, Zomato)

2.5% CGST + 2.5% SGST; no ITC to operator

5%

Cab & Auto Rides (Uber, Ola)

2.5% CGST + 2.5% SGST; no ITC to operator

5%

TCS on All Other Platform Supplies (Section 52)

0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state; effective July 10, 2024

0.5%

Source: Section 9(5) and Section 52 CGST Act, 2017; Notification No. 17/2017-Central Tax (Rate) as amended by No. 17/2021-Central Tax (Rate); Notification No. 15/2024-Central Tax

For certain notified services, the e-commerce operator is not just collecting TCS. The ECO is the person liable to pay GST on the supply itself. Section 9(5) of the CGST Act provides that the government may notify categories of services where the ECO is deemed to be the supplier.

Currently Notified Services Under Section 9(5)

Two more categories are also notified: housekeeping services such as plumbing and carpentry (from 1 January 2022, unless the person supplying through the platform is liable to register), and local delivery services through an ECO (from 22 September 2025, where the delivery provider is not liable to register, at 18%).

What This Means in Practice

For restaurant food delivery: When a customer orders food through Swiggy or Zomato, the platform collects 5% GST from the customer and deposits it with the government. The restaurant does not pay this GST. However, the restaurant must still report these supplies in GSTR-1 (as supplies made through an ECO liable under Section 9(5)). The restaurant does not pay tax on these supplies again in GSTR-3B.

The 5% GST on restaurant services through ECOs is payable in cash. The operator cannot use ITC to discharge this liability. This was a deliberate policy choice to ensure the concessional 5% rate is not diluted by ITC claims.

For cab and auto rides: Uber and Ola pay 5% GST on ride fares. Individual drivers do not need to register for GST or file returns for rides facilitated through these platforms. However, if a driver also provides services independently (outside the platform), the normal registration and filing obligations apply based on turnover.

For accommodation: For accommodation services notified under Section 9(5), the aggregator pays the GST on bookings made through it. Where the notification does not cover the property, the hotel pays GST itself and the platform collects Section 52 TCS instead. The 12% rate that older guides quote no longer exists after GST 2.0 (22 September 2025), so check the current hotel-accommodation rate entry before invoicing.

Overlap Between Section 9(5) and Section 52

Section 52 TCS does not apply to supplies where the ECO is already paying GST under Section 9(5): the Explanation to Section 52(1) excludes Section 9(5) services from "net value of taxable supplies". The logic is straightforward: if the ECO is the deemed supplier and is paying the full GST, there is no need to also collect TCS on those supplies. TCS only applies to supplies where the actual supplier (seller on the platform) is the person liable to pay GST.

Compliance Checklist for E-Commerce Operators

• Obtain GST registration under Section 24(x) (and Section 24(iv) for Section 9(5) liability) before launching the platform
• Collect TCS at 0.5% (0.25% CGST + 0.25% SGST or 0.5% IGST) on the net taxable value of all supplies facilitated
• Maintain GSTIN records of every seller on the platform; verify validity periodically
• Deposit TCS collected by the 10th of the following month
• File GSTR-8 by the 10th of every month with accurate supplier-wise breakdowns
• For Section 9(5) services (food delivery, cabs, notified accommodation), report and pay the GST in your own GSTR-1 and GSTR-3B
• File the annual statement GSTR-9B before 31 December following the financial year
• Reconcile TCS collected against TCS deposited monthly to catch discrepancies before they compound

Compliance Checklist for Sellers on E-Commerce Platforms

• Register for GST under Section 24(ix), unless a notified exemption from compulsory registration covers you
• Composition is allowed only for goods sold through ECOs (from 1 October 2023) and only intra-state; services through a TCS-collecting ECO bar composition (Section 10(2)(d))
• Check the TDS and TCS credit section of the GST portal every month for TCS from each platform
• Accept the TCS credit so it moves to your electronic cash ledger, then use it when paying GSTR-3B liability
• Reconcile platform settlement reports with the TCS credit shown on the portal. Flag mismatches early
• If selling on multiple platforms (Amazon + Flipkart + Meesho), aggregate TCS from all sources
• Verify that your GSTIN is correctly recorded on every platform's seller dashboard
• Track net taxable value calculations. Returns and cancellations should reduce TCS. If they do not, raise a dispute

Common Mistakes

1. Confusing TCS with TDS. TCS under Section 52 (GST law) and TDS under Section 194O (income tax law) are two separate deductions. Both are deducted by the e-commerce operator, but they apply to different tax regimes. TCS is a GST mechanism; TDS is an income tax mechanism. You claim TCS credit in your GST returns and TDS credit in your income tax return. Do not mix them up. Our TDS on e-commerce payments under Section 194O guide explains the income-tax side in full.

2. Not claiming TCS credit because it seems small. At 0.5%, the monthly amount may look insignificant. But for a seller doing Rs 50 lakh annually, that is Rs 25,000 per year sitting in the electronic cash ledger. If unclaimed, it reduces your working capital for no reason.

3. Ignoring TCS credit reconciliation. The TCS credit only hits your ledger when the ECO files GSTR-8 with your correct GSTIN. If the platform has your old GSTIN or a typo, the credit goes nowhere. Check the TDS and TCS credit section on the portal every month.

4. Composition dealers selling through platforms. Since 1 October 2023 (Finance Act 2023, Notification No. 28/2023-Central Tax), Section 10(2)(d) of the CGST Act bars composition taxpayers only from supplying services through an e-commerce operator that collects TCS. A composition dealer may sell goods on Amazon or Flipkart, but only within the state, because Section 10(2)(c) bars inter-state outward supplies. If your listing ships to other states, you cannot stay in composition.

5. ECOs not adjusting TCS for returns. TCS must be calculated on the net taxable value (after deducting returns). Some smaller platforms collect TCS on gross sales and do not adjust for returns in the same month. This overcollects TCS from sellers. Under Section 52(6), the operator corrects such errors in the GSTR-8 for the month in which they are noticed.

6. Sellers not reporting supplies made through ECOs in GSTR-1. Even when the ECO pays GST under Section 9(5) (food delivery, for example), the supplier must report these supplies in GSTR-1. For supplies on which TCS is collected, Section 52(8) to (10) matches the ECO's GSTR-8 against the seller's GSTR-1 and GSTR-3B: a shortfall that the seller does not rectify is added to the seller's output tax liability, with interest under Section 50(1).

How Tax Garden Helps

Tax Garden's compliance plans handle the full GST cycle for e-commerce sellers and operators. For sellers, we download and reconcile the TCS credit shown on the GST portal against platform settlement reports from Amazon, Flipkart, Meesho, Swiggy, and other platforms. We file your GSTR-1 and GSTR-3B with the TCS credit correctly used and flag mismatches before they trigger notices. For operators, we manage GSTR-8 filing, supplier GSTIN verification, and Section 9(5) liability computation. Flat-fee pricing, no surprises.

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Sources and verification: This guide draws from Section 52 (TCS by e-commerce operators), Section 2(45) (definition of e-commerce operator), Section 9(5) (ECO deemed supplier for notified services), Section 24 (compulsory registration), and Section 10(2)(d) (composition scheme bar) of the CGST Act, 2017. TCS rate verified against CBIC Notification No. 15/2024-Central Tax dated July 10, 2024, and Notification No. 52/2018-Central Tax dated September 20, 2018 (original TCS rate). GSTR-8 filing requirements from Section 52(3) to (6) and Rule 67 of the CGST Rules, 2017. Section 9(5) notified services from Notification No. 17/2017-Central Tax (Rate) as amended by Notification No. 17/2021-Central Tax (Rate) dated November 18, 2021. Late fee from Section 47(1) and interest from Section 50 of the CGST Act. Reviewed September 2026.

Frequently Asked Questions

How much GST TCS does Amazon or Flipkart deduct from a seller's payout?

The operator collects 0.5% of the net taxable value of your sales, reduced from 1% with effect from 10 July 2024. For an intra-state sale this is split as 0.25% CGST and 0.25% SGST; for an inter-state sale it is 0.5% IGST. On Rs 9,50,000 of net taxable sales in a month, TCS is Rs 4,750. Returns in the same month and the GST component itself are excluded.

Where does a seller get credit for the TCS collected by the platform?

Once the operator files GSTR-8 with your GSTIN, the amount shows in the TDS and TCS credit section on the GST portal. After you accept it, the credit moves to your electronic cash ledger, not the credit ledger, and can be used to pay your GST liability or be claimed as a refund if it keeps piling up. If it does not appear, check that the platform has your correct GSTIN.

Is GST TCS under Section 52 the same as TDS under Section 194O?

No. Section 52 TCS is a GST collection credited to your GST cash ledger. Section 194O TDS (section 393, Table serial 8(v), of the Income-tax Act, 2025 from 1 April 2026) is an income-tax deduction at 0.1% of the gross amount of sales, which shows in Form 26AS and is claimed in your income tax return. Both are deducted by the same platform, so settlement reports often mix them, but each must be reconciled against its own return.

Does the operator collect TCS on Swiggy or Zomato restaurant orders?

No. Restaurant services supplied through a food delivery app fall under Section 9(5), so the platform itself is liable to pay 5% GST to the government and there is no Section 52 TCS on those orders. The restaurant still reports these sales in GSTR-1 as supplies made through the operator, but does not pay tax on them again in GSTR-3B.

What is the due date for GSTR-8 and the TCS deposit?

An e-commerce operator must deposit the TCS collected and file GSTR-8 by the 10th of the month following the month of collection. Late filing attracts a late fee under Section 47(1) of Rs 100 per day under the CGST Act, capped at Rs 5,000, plus the same under the State GST Act, and TCS deposited late carries interest. Every operator required to collect TCS must hold GST registration from the start, irrespective of turnover (Section 24(x)).