Rate of TCS under GST for E-commerce operator reduced to 0.5%

Summary of Rate of TCS under GST for E-commerce operator reduced to 0.5%: With effect from 10-07-2024 ,the GST Council has decided to reduced rate of TCS under GST from 1% (0.5% CGST+0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST & 0.25% SGST/UTGST, or 0.5% IGST) as per Notification No.15/2024 dated 10-07-2024.Additionally,some taxpayers have faced validation erors in filling of GSTR-8 for the month of July-2024 and GSTN team is working on changes annouced by GST Council which will be completed in next few days.

Key aspects for revised rate of TCS under GST :

TCS Rate for period 01-07-2024 to 09-07-2024 : 1% (Old Rate)

TCS Rate from 10-07-2024 onwards: 0.5% (New Rate)

Note: The rate of GST TCS reduced to 0.5% effective from 10-07-2024. TCS @1% will continue to apply for period from 01-07-2024 to 09-07-2024.

The Government has issued GST Advisory regarding revised rate of TCS under GST are as under.

Please refer to the GST Council decision to the effect that TCS rate has been reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.

Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:

1. Period from 1st July to 9th July 2024:

• During this period, the old TCS rate of 1% will continue to apply. Taxpayers are required to collect & report TCS at this rate for all transactions happened between these dates.

2. From 10th July 2024 onwards:

• A revised TCS rate of 0.5% will come into effect from 10th July 2024. Taxpayers must ensure their systems and processes are updated to reflect this new rate for all transactions happened from 10th July forward.

Further, as few taxpayers have reported validation error while filing GSTR-8 for the month of July 2024, it is to inform that GSTN team is working on the changes announced by GST Council in respect of GSTR 8, is expected to be complete in next couple of days, and users would be able to file returns from 06th August 2024 midnight onwards. Any inconvenience caused in this regard is regretted.

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