Government defers Tax Collection at Source (TCS) under GST - Press Note

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The government has deferred implementation of TCS provisions as well as exempted from registration small businesses selling on ecommerce platform till the time TCS comes into force.


Please refer to the attached press release clarifying that E-commerce companies will not be required to collect 1 per cent TCS (Tax Collection at Source) while making payment to suppliers under the Goods and Services Tax (GST) which will be rolled out from July 1 2017.  It further provides that persons who were mandated to be registered under Section 24 of the CGST Act will get more time to register till the provision of TCS is brought under force. Hence, people who were otherwise not required to register as per section 22 (since their aggregate turnover was not exceeding INR 20 lakh) but were liable to register due to mandatory provisions of section 24 (clause ix) will get a relief in registration till TCS is implemented. NASSCOM had flagged this issue at various forums and very recently in the 2 sectoral working group meetings held last week and welcome this support from the government.