The Central Board of Excise and Customs (CBEC) on Wednesday said the travel agents providing online ticketing and other services will be liable to deduct 1 percent tax at source (TCS) under the GST regime.
The e- commerce operator is allowed to collect 1 percent of the net value of taxable supplies.
CBEC confirmed, "We have categorised an e-commerce operator as someone who works for or manages the electronic platform for e-commerce."
CBEC in its latest set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website.
It added, "Online travel agents providing services through digital or electronic platform will fall under the category of ECO (e- commerce operator) liable to deduct TCS under Section 52 of the CGST Act, 2017."
The CBEC said every e-commerce operator is liable to collect taxes on behalf of supplier and the tax has to be collected during the month in which the amount was collected from the recipient.
Besides, every e-commerce operator will be required to furnish an electronic statement within 10 days of the next month giving details of outward supplies of goods or services, including supplies returned through it and the amount collected as TCS during the month.
It further said, "In cases where someone is selling their own products through a website, there is no requirement to collect tax at the source... These transactions will be liable to GST at the prevailing rates."
These details would then be matched with the corresponding details of outward supplies furnished by the supplier and in the case of discrepancy, the tax department will communicate the same to both the persons.
