Section 52 makes an e-commerce operator that collects payment for sellers on its platform keep back a small percentage and pay it to the Government, reporting each seller's sales. The seller gets the amount as a credit in its cash ledger; the department gets an independent record of platform sales.
Key points
- Under section 52(1) of the CGST Act, 2017 an e-commerce operator, not being an agent, must collect tax at a notified rate (not exceeding 1%) on the net value of taxable supplies made through it by other suppliers, where it collects the consideration.
- The rate is 0.25% CGST and 0.25% SGST, or 0.5% IGST, from 10.07.2024 (earlier 0.5% and 1%); supplies on which the operator itself pays tax under section 9(5) are excluded.
- The operator pays the amount and files a monthly statement (GSTR-8) by the 10th of the following month, and an annual statement by 31 December; the seller claims the amount in its cash ledger.
- A Deputy Commissioner or above may require the operator to give details of supplies or of sellers' stock in its warehouses, within fifteen working days, on pain of a penalty up to Rs. 25,000.
- Section 52 came into force on 01.10.2018 (Notification 51/2018-Central Tax); from 01.10.2023 a statement cannot be filed more than three years late.
The provisions
52(1)–(3)Collection and payment
Statutory text
(1) 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.
Explanation .-For the purposes of this sub-section, the expression "net value of taxable supplies" shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
(2) The power to collect the amount specified in sub-section (1) shall be without prejudice to any other mode of recovery from the operator.
(3) The amount collected under sub-section (1) shall be paid to the Government by the operator within ten days after the end of the month in which such collection is made, in such manner as may be prescribed.
* Enforced w.e.f. 22nd June, 2017.
- Notification 52/2018-Central Tax — rate (amended by Notification 15/2024-Central Tax from 10.07.2024)
- Rule 67, CGST Rules; Form GSTR-8
52(4)–(7)Statements; rectification; credit to sellers
Statutory text
(4) Every operator who collects the amount specified in sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month:
1[Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.]
2[Explanation : - For the purposes of this sub-section, it is hereby declared that the due date for furnishing the said statement for the months of October, November and December, 2018 shall be the 3[07th February, 2019].]
(5) Every operator who collects the amount specified in sub-section (1) shall furnish an annual statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under the said sub-section during the financial year, in such form and manner as may be prescribed, before the thirty first day of December following the end of such financial year
4[Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein:
Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.]
(6) If any operator after furnishing a statement under sub-section (4) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the statement to be furnished for the month during which such omission or incorrect particulars are noticed, subject to payment of interest, as specified in sub-section (1) of section 50:
Provided that no such rectification of any omission or incorrect particulars shall be allowed after the 5[thirtieth day of November] following the end of the financial year or the actual date of furnishing of the relevant annual statement, whichever is earlier.
(7) The supplier who has supplied the goods or services or both through the operator shall claim credit, in his electronic cash ledger, of the amount collected and reflected in the statement of the operator furnished under sub-section (4), in such manner as may be prescribed.
1. Inserted by s. 101 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 01st January, 2020 vide Notification No. 1/2020-C.T., dated 01-01-2020.
2. Inserted by CGST (Fourth Removal of Difficulties) Order, 2018, issued under C.B.I. & C. Order No. 4/2018-C.T., dated 31-12-2018.
3. Substituted by CGST (Second Removal of Difficulties) Order, 2019 for "31st January, 2019", issued under C.B.I. & C. Order No. 2/2019-C.T., dated 1-2-2019.
4. Inserted by s. 101 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 01st January, 2020 vide Notification No. 1/2020-C.T., dated 1-1-2020.
5. Substituted (w.e.f. 1st October, 2022 vide Notification No. 18/2022 - CT dated 28.09.2022) by s. 112 of The Finance Act 2022 (No. 06 of 2022) for “due date for furnishing of statement for the month of September”.
What it means
The monthly statement (GSTR-8) lists each seller's supplies and returns and the amount collected; the annual statement is due by 31 December. Errors are rectified in a later statement, not after 30 November following the year (from 01.10.2022) or the annual statement, if earlier — the same rule as section 37(3). The seller accepts the amount on the portal and it is credited to its cash ledger. Late statements attract late fee under section 47(1) from 01.10.2022.
52(8)–(11)Matching with sellers' returns
Statutory text
(8) The details of supplies furnished by every operator under sub-section (4) shall be matched with the corresponding details of outward supplies furnished by the concerned supplier registered under this Act in such manner and within such time as may be prescribed.
(9) Where the details of outward supplies furnished by the operator under sub-section (4) do not match with the corresponding details furnished by the supplier under 6[section 37 or section 39], the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed.
(10) The amount in respect of which any discrepancy is communicated under sub-section (9) and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated, shall be added to the output tax liability of the said supplier, where the value of outward supplies furnished by the operator is more than the value of outward supplies furnished by the supplier, in his return for the month succeeding the month in which the discrepancy is communicated in such manner as may be prescribed.
(11) The concerned supplier, in whose output tax liability any amount has been added under sub-section (10), shall pay the tax payable in respect of such supply along with interest, at the rate specified under sub-section (1) of section 50 on the amount so added from the date such tax was due till the date of its payment.
6. Substituted (w.e.f. 1-2-2019) by s. 22 of the CGST (Amendment) Act, 2018 (31 of 2018).
What it means
The operator's statement is matched with the seller's GSTR-1 and GSTR-3B (sections 37 and 39, from 01.02.2019). Where the operator reports more supplies than the seller, the discrepancy is communicated and, if not rectified, added to the seller's output tax with interest. Rules 78 and 79 prescribe the matching and communication of discrepancies.
52(12)–(15)Notices for information; three-year bar
Statutory text
(12) Any authority not below the rank of Deputy Commissioner may serve a notice, either before or during the course of any proceedings under this Act, requiring the operator to furnish such details relating to-
(a) supplies of goods or services or both effected through such operator during any period; or
(b) stock of goods held by the suppliers making supplies through such operator in the godowns or warehouses, by whatever name called, managed by such operator and declared as additional places of business by such suppliers,
as may be specified in the notice.
(13) Every operator on whom a notice has been served under sub-section (12) shall furnish the required information within fifteen working days of the date of service of such notice.
(14) Any person who fails to furnish the information required by the notice served under sub-section (12) shall, without prejudice to any action that may be taken under section 122, be liable to a penalty which may extend to twenty-five thousand rupees.
Explanation. -For the purposes of this section, the expression "concerned supplier" shall mean the supplier of goods or services or both making supplies through the operator.
7[(15) The operator shall not be allowed to furnish a statement under sub-section (4) after the expiry of a period of three years from the due date of furnishing the said statement:
Provided that the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, allow an operator or a class of operators to furnish a statement under sub-section (4), even after the expiry of the said period of three years from the due date of furnishing the said statement].
7. Inserted (w.e.f. 1st October, 2023 vide Notification No. 28/2023-C.T., dated 31st July, 2023.) by s. 145 of The Finance Act 2023 (No. 8 of 2023).
What it means
An officer not below Deputy Commissioner may, before or during any proceedings, require the operator to furnish details of supplies through it or of stock held for sellers in warehouses it manages that the sellers have declared as additional places of business. The operator must reply within fifteen working days; failure attracts a penalty up to Rs. 25,000, in addition to any penalty under section 122. Sub-section (15), from 01.10.2023, bars filing a statement more than three years after its due date.
Statutory text as published on the CBIC tax information portal, as on 03.10.2026; the numbered notes record each amendment. Official source
Common questions
- What is the TCS rate for e-commerce operators under GST?
- From 10.07.2024, 0.25% CGST plus 0.25% SGST, or 0.5% IGST, of the net value of taxable supplies made through the operator (Notification 52/2018-Central Tax as amended by Notification 15/2024-Central Tax). It was 1% in total before.
- How does a seller get credit for TCS?
- The amount reported by the operator in GSTR-8 is accepted by the seller on the portal and credited to its electronic cash ledger (section 52(7) CGST).
Commentary and case notes checked against the judgments and CBIC sources on 04.10.2026.
What it means
"Net value of taxable supplies" is the month's taxable supplies by all registered sellers through the operator, less supplies returned. Supplies notified under section 9(5) — such as passenger transport, accommodation and restaurant services through platforms — are excluded, since the operator itself pays the tax on them. The amount is paid by the 10th of the following month.