Online travel agents liable to deduct TCS under GST: CBEC

Online travel agents liable to deduct TCS under GST: CBEC

Travel agents providing online ticketing and other services will be liable to deduct 1 per cent tax at source under the GST regime as they have been classified as e-commerce operators, the CBEC said today. Under the Goods and Services Tax (GST) regime, an e- commerce operator is required to collect 1 per cent of the net value of taxable supplies made through it. The amount so collected is called tax collected at source or TCS but this provision has been kept in abeyance for the time being.

Online travel agents have been classified as e-commerce operators (ECO) and so they have to deduct TCS. The Central Board of Excise and Customs (CBEC), in a fresh set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website. Only applicable GST for the goods would be levied in that case. Electronic commerce or e-commerce means supply of goods or services, including digital products, over electronic network and an e-commerce operator is a person who owns operates or manages the electronic platform for e-commerce, it said.

“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. CBEC also clarified that the benefit of threshold exemption is not available to an e-commerce operator or a supplier on the e-commerce platform. Businesses with turnover up to Rs 20 lakh are otherwise exempt from GST. According to the Central GST (CGST) Act, e-commerce companies have to deduct 1 per cent TCS while making payment to suppliers under the GST regime.

The CBEC said that 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 of collected from the recipient. Besides, the tax amount collected by the operator will have to be paid to the government within 10 days after the end of the month in which the amount was collected. Besides, the CGST Act empowers tax officials to seek information on supply or stock details from e-commerce operators.

“Any officer not below the rank of Deputy Commissioner may issue a notice to the electronic commerce operator to furnish such details within a period of 15 working days from the date of service of such notice,” the CBEC said. It further clarified that suppliers selling their own products through a website hosted by him will also fall under the definition of an e-commerce operator, but there they need not deduct TCS.

“In cases where someone is selling their own products through a website, there is no requirement to collect tax at source… These transactions will be liable to GST at the prevailing rates,” the CBEC said. 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.

These details would be matched with the corresponding details of outward supplies furnished by the supplier and in case of discrepancy the tax department will communicate the same to both the persons.


News Source: PTI

About author

TnH Global
TnH Global 4067 posts

Our platform is the most comprehensive, current and accurate content destination for tourism that also offers the opportunity to connect and network with quality buyers and sellers.

Name: TnH Global              Email:

You might also like


Government-owned Air India mulling setting up Aviation University

Government-owned Air India is mulling setting up of an aviation university to cater to the increasing demand for aviation courses particularly for pilots and cabin crew. Air India already has


ITM – The most awaited Travel Exhibition in Punjab

INDIA TRAVEL MART, Amritsar starts from August 12 to 14, 2016 The much awaited and prominent Travel & Tourism Exhibition, India Travel Mart- ITM Amritsar is back in the city


Cox and Kings organised Beach Cleaning Drive in Juhu

In a bid to create awareness and to preserve the beauty of one of the most popular beaches of Mumbai, Cox and Kings, a leading travel company organised a special


Small Luxury Hotels of the World™ Announces £12 Million Investment

Small Luxury Hotels of the World™ (SLH), the champion of small, exclusive, independently-owned hotels around the world, has today confirmed a new structure for the company. This restructure allows for


New and exciting CHIHULY experience to debut in New York in Spring 2017

Breathtaking works of art by world-renowned artist Dale Chihuly to be exhibited at the New York Botanical Garden from April 22 through October 29, 2017! For the first time in


Sri Lankan Tamil pilgrims can travel to Chidambaram on ferry

India said it was approached on behalf of Lord Shiva devotees in Northern Sri Lanka who expressed the desire to visit the Natraj temple in Chidambaram for the Maarkazhi Thiruvembavai


Seychelles Tourism Board successfully concludes roadshow

Seychelles Tourist Office, India organised a three city roadshow from 3rd to 7th September 2018 in Kolkata, Bangalore and Pune. The cities have not only seen an increase in outbound


Jordan announces India arrival figures — unprecedented growth of 18.40%

The Jordan Tourism Board has announced the 2016 Indian arrival figures to Jordan. In a unprecedented trend, the same day visitor arrivals from India has declined by 4.50%, which indicates



Following its recent launch of passenger freighter flights to 10 destinations, complementing its Boeing 777 freighter operations, Etihad Cargo is pleased to announce five additional routes using Etihad Airways passenger


Celebrate the festivities of full moon ceremony at The Oberoi, Bali

Purnima or ‘full moon’ in Bali is a special day for ceremonies and festivities. Temples all over the island celebrate this special day by hosting splendid ceremonies. Balinese believe that


Singapore Airlines has open mind on making initial bid for Air India

Singapore Airlines has an open mind about making an initial bid for a stake in state-run Air India, the head of the Singaporean carrier’s India business. India said last week


Air India’s operational profit rises to Rs 215 crore in 2016-17

Air India’s operational profit rose to Rs 215 crore and net losses narrowed to Rs 3,643 crore in 2016-17, according to the government. Air India’s operational profit rose to Rs


No Comments Yet!

You can be first to comment this post!