SIR WHETHER TCS IS APPLICABLE ON SERVICES IF YES PLS PROVIDE ME CIRCULARS.

Reply—Under section 52(1) of the CGST Act,2017 notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “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.

Whereas, as per section 206C(1H) of Income Tax Act, TCS needs to be collected if the seller receives the consideration for sale of goods in excess of Rs. 50 Lakhs during the current Financial Year. It is not related to GST. Sec 206C(1H) is applicable only on sale of goods and thus not applicable on Service providers.