E-CommerceTCS & Aggregators

GST on E-Commerce — TCS, Aggregators, OIDAR & Online Gaming

Complete GST guide for e-commerce: TCS at 1% (Section 52), mandatory ECO registration, food delivery aggregator liability (5%), cab/ride-hailing (5%), OIDAR for foreign digital services, marketplace vs inventory model, online gaming (28%), and cross-border e-commerce exports.

1%

TCS Rate

18%

E-Commerce Services

18%

OIDAR Services

5%

Food Delivery (Agg.)

5%

Cab Aggregators

₹0

ECO Threshold

₹20L

Seller Threshold

Mandatory

Section 52 TCS

E-Commerce — GST Framework

TCS — Tax Collected at Source (Section 52)

E-commerce operators (ECO) must collect TCS at 1% (0.5% CGST + 0.5% SGST, or 1% IGST for inter-state) of net taxable value of supplies made THROUGH their platform. Net value = gross value minus returns. TCS must be deposited by 10th of next month via GSTR-8. Sellers claim TCS credit in their GSTR-2A. TCS applies only on goods/services supplied through ECO — NOT on ECO's own services. Amazon, Flipkart, Myntra, Meesho all collect TCS.

ECO Registration — No Threshold

E-commerce operators have MANDATORY GST registration — no threshold exemption of ₹20 lakh applies. Even if turnover is ₹1, ECO must register. Sellers on e-commerce: regular threshold applies (₹20L/₹10L for special states) UNLESS making inter-state supplies through ECO (then mandatory registration regardless of turnover — Section 24). Exception: sellers of services through ECO with turnover <₹20L are exempt from mandatory registration (Notification 65/2017 amended).

Food Delivery Aggregators — 5% GST

From January 1, 2022: food delivery platforms (Swiggy, Zomato) are deemed suppliers — THEY pay 5% GST on restaurant food delivery (not the restaurant). This shifted tax liability from small unregistered restaurants to the platform. Rate: 5% without ITC (same as restaurant dine-in). Aggregator issues invoice to customer. Restaurant doesn't charge GST on platform orders. Platform files GSTR-1 with these supplies. Cloud kitchens: 5% when through aggregator.

Cab & Ride-Hailing Aggregators

Uber, Ola, Rapido: platform is deemed supplier of transportation service. Rate: 5% GST on cab/auto rides booked through app. No ITC for aggregator on this supply. If driver is unregistered: aggregator pays full GST. If driver is registered: driver pays GST independently (aggregator not liable). Two-wheeler (bike taxi): 5%. Auto-rickshaw through app: 5% (auto without app: exempt). Rental/outstation: 5% or 12% depending on service type.

OIDAR & Cross-Border E-Commerce

Online Information and Database Access or Retrieval (OIDAR): Foreign e-commerce companies providing digital services to Indian consumers must register and pay 18% IGST. Covers: streaming (Netflix, Disney+), cloud gaming, online education platforms, e-books, SaaS to individuals. Simplified registration under Rule 14 of IGST Rules. Cross-border goods: customs duty + IGST on import. Gift/courier imports >₹5,000: dutiable. Export via e-commerce: zero-rated (exporters can claim refund).

Marketplace vs Inventory Model

Marketplace model (Amazon, Flipkart marketplace): Platform connects buyer-seller — seller is supplier, platform collects TCS. Platform commission: 18% GST. Inventory/direct model (Amazon Retail, Flipkart own sales): Platform is the seller — pays GST on supply directly (no TCS on own sales). Hybrid: Same platform may act as marketplace for some products and direct seller for others. FDI rules: 100% FDI only in marketplace model; inventory model restricted for foreign e-commerce.

E-Commerce — GST Rate Table

Item/ServiceSAC/HSNGST RateNotes
TCS by ECO on seller supplies—1%0.5% CGST + 0.5% SGST
E-commerce platform commission998318%Service to sellers
Food delivery via aggregator99635%No ITC; aggregator pays
Cab/auto ride via app99645%Aggregator is deemed supplier
OIDAR services (foreign → India B2C)998418%Foreign supplier pays IGST
Online gaming (skill-based)998428%On full face value (Oct 2023)
Platform logistics/shipping996518%Courier/delivery service
Digital advertising (Google, Meta)998318%RCM for B2B imports
Payment gateway fees997118%Per-transaction charges
Seller storage/FBA fees996718%Warehousing services
E-commerce exports (LUT)Various0%Zero-rated with LUT
Digital products (e-books, apps)998418%Electronic download

Frequently Asked Questions

What is TCS under GST for e-commerce and how does it work?
TCS (Tax Collected at Source) under Section 52 of CGST Act requires e-commerce operators to collect 1% (0.5% CGST + 0.5% SGST for intra-state, or 1% IGST for inter-state) of the 'net value of taxable supplies' made through their platform. Net value = total taxable value minus returned goods value. The ECO deposits TCS with government by 10th of following month via GSTR-8. Sellers see TCS credit reflected in their GSTR-2A and can use it against their GST liability. TCS is NOT an additional tax — it's advance collection that sellers adjust later.
Do sellers on Amazon/Flipkart need GST registration even with low turnover?
It depends on the type of supply: (1) Goods sellers making INTER-STATE supplies through e-commerce: MANDATORY registration regardless of turnover (Section 24(ix)). Even ₹1 of inter-state supply = registration needed. (2) Goods sellers making ONLY INTRA-STATE supplies: threshold of ₹20L (₹10L for special states) applies. (3) Service providers: exempt from mandatory e-commerce registration if turnover <₹20L (Notification 65/2017 as amended). So a Delhi-based seller shipping to Maharashtra MUST register even with ₹5,000 monthly sales.
How does GST work for food delivery on Swiggy/Zomato?
Since January 1, 2022: (1) Swiggy/Zomato are 'deemed suppliers' of restaurant services — THEY pay 5% GST (not the restaurant). (2) Restaurant doesn't charge separate GST on app orders. (3) Aggregator issues tax invoice to customer. (4) Rate: 5% without ITC (same as restaurant dine-in for non-AC). (5) Restaurants above ₹20L threshold still must register for GST (their dine-in + own delivery attracts 5%). (6) Cloud kitchens through aggregator: 5%. (7) Aggregator's own commission/delivery charges: 18% separately.
What is the GST on online gaming after October 2023?
From October 1, 2023 (51st Council meeting decision implemented): 28% GST on FULL FACE VALUE of bets/entry amount for online money gaming — regardless of skill vs chance. Previously: 18% on GGR (Gross Gaming Revenue = platform fee). New rule: 28% on entire deposit/bet amount. Example: If player deposits ₹1,000 to play → 28% GST on ₹1,000 = ₹280 collected upfront. Applies to: fantasy sports (Dream11), poker, rummy, casino games. Free games with no real money: no GST. This significantly increased effective tax rate for gaming industry.

E-Commerce TCS & Aggregator Compliance — Automated

Laabam.One auto-reconciles TCS from e-commerce operators against GSTR-2A, handles aggregator deemed-supplier invoicing, tracks OIDAR reverse charge, and files GSTR-8 for e-commerce operators.

Explore GST Law