BCH Ltd, is registered under GST in the state of Maharashtra. It sells readymade cloths across India through e-commerce operator Skart. Skart is registered with Madhya Pradesh GST Authority as TCS collector and collects

Answer 2(a) Section 52 of CGST Act 2017 deals with the matter relating to collection of Tax at Source. It provides that every electronic commerce operator not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. Vide Notification No. 02/2018 - Integrated Tax dated 20.9.2018, the Government has notified rate of one percent. Explanation - For the purposes of this sub-section, the expression "net value of taxable supplies" shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under subsection (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. Explanation - For the purpose of deduction of tax specified above, the value of supply shall be taken as the amount excluding the central tax, State tax, Union territory tax, integrated tax and cess indicated in the invoice. Here sales return is inclusive of GST so we have to calculate exclusive Sales return as - ₹42,560 × 100 / 112 (because its Inter State hence IGST @ 12% taken) = ₹38,000 Value for TCS = ₹4,35,000 - ₹38,000 = ₹3,97,000 Hence TCS would be 1% of ₹3,97,000 = ₹3,970