Summary of Tax Collected at Source (TCS) and Deposited by E-commerce Operators under GST Laws for the Month of April, 2026

Tax Collected at Source (TCS) under GST is a key compliance requirement for e-commerce operators. This article summarizes the provisions and compliance requirements for TCS applicable to transactions in April 2026.

Overview of TCS under GST

TCS provisions are governed by Section 52 of the CGST Act, 2017, read with Rule 67 of the CGST Rules. These provisions apply to e-commerce operators who collect consideration on behalf of suppliers.

Key highlights:

• Applicable to e-commerce operators (ECOs) facilitating supply of goods or services
• TCS is collected on the net value of taxable supplies made through the platform
• Rate of TCS:
  • 1% (0.5% CGST + 0.5% SGST) for intra-state supplies
  • 1% IGST for inter-state supplies
    (as notified under Notification No. 52/2018 – Central Tax dated 20-09-2018)
• “Net value” = taxable supplies made during the month minus returns

TCS Collection and Deposit – April 2026

For supplies made through e-commerce platforms during April 2026, the following applies:

• TCS must be collected by the operator at the time of credit/payment to suppliers
• The collected amount must be deposited with the government within the prescribed time
• Details must be reported in Form GSTR-8

Due Date:

• GSTR-8 filing due date: 10th May 2026
  (as per Section 52(4) of the CGST Act read with Rule 67)

Filing Requirements – Form GSTR-8

Form GSTR-8 is a monthly return to be filed by e-commerce operators. It includes:

• Details of supplies made through the platform
• TCS collected on such supplies
• Adjustments for supplies returned
• Supplier-wise breakup of TCS collected

Post filing:

• TCS amount is reflected in the supplier’s electronic cash ledger
• Suppliers can use this amount to discharge their GST liability

Compliance Importance and Consequences

Timely compliance ensures:

• Proper credit flow to suppliers
• Accurate reporting of e-commerce transactions
• Reduced risk of tax mismatches

Consequences of non-compliance:

• Interest at 18% per annum (Section 50 of CGST Act)
• Late fee up to ₹5,000 for delayed filing of GSTR-8 (Section 47 of CGST Act)

Key Points for April 2026

• TCS rate remains 1% on net taxable supplies
• Applicable only to e-commerce operators
• Monthly return GSTR-8 due by 10th May 2026
• Ensure reconciliation with supplier data
• Verify TCS credit in supplier’s electronic cash ledger

Conclusion

TCS under GST plays a crucial role in tracking transactions conducted through e-commerce platforms. For April 2026, operators must ensure timely collection, deposit, and filing of GSTR-8 by 10th May 2026 to remain compliant and avoid penalties.

For expert guidance on this topic, contact your tax professional today.