Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government.

Tax Collected at Source (TCS) under GST means the tax collected by the Business from the consideration received by it on behalf of the supplier of goods, or services who makes supplies/Gives through the operator’s online platform. TCS will be charged as a percentage on the net taxable supplies. The provision of TCS under GST is dealt under Section 52 of the CGST Act.

The platform is allowed to deduct TDS @ 1% of the gross amount that is being withdrawn by the user, but the platform is not required to deduct TDS if the gross amount does not exceed Rs. 5 lakh and if the user has furnished his PAN or Aaadhaar.
Note- It is important for the users to provide their PAN or Aadhaar, if not then TDS will deducted at the rate of 5% as per the provision of section 206AA. It is a mandatory provision u/s 194O of Income Tax Act, so every Business/Platform need to deduct TDS at the prescribed rate.

After deducting the TDS from the gross sales amount, the Platform or Business is required to issue a TDS certificate to the deducted They can issue this certificate through Form 16A. The TDS certificate helps a deductee claim credit of the deducted tax while filing an Income Tax Return (ITR).

The Platform have to file GSTR-8 This return will only be filed once the tax collected has been deposited to the respective credit of the government. The details submitted by the operators in GSTR 8 will be available to all the suppliers in GSTR 2A. The supplies will be available GSTR 2A after the due Date of filing GSTR-8.