Suppose ABC Ltd. of Maharashtra sells goods through Amazon to a customer from Maharashtra worth Rs. 20,000. GST rate is 12%. Amazon deducts its commission @10% on value of goods. Then on what amount TCS should be done by Amazon?

Reply— As per section 52 of CGST Act, every electronic commerce operator 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.

the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both. Amazon will deduct TDS on Rs. 20,000/-