Certain entities must deduct TDS or collect TCS under GST and file dedicated returns for it — a separate compliance stream from normal GST. We handle the registration, the correct deduction or collection, the monthly GSTR-7 or GSTR-8 filing, and the certificates, so this specialised obligation is never missed.
TDS and TCS under GST — a separate obligation
Most businesses know GST as charging tax on sales and claiming credit on purchases. But GST also has its own TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) mechanisms, applying to specific persons, with their own registrations and returns. If you fall into one of these categories, this is a compliance stream you cannot handle with ordinary GST filing — and missing it carries its own penalties.
Who has to deduct GST TDS
GST TDS applies mainly to notified deductors — government departments and agencies, local authorities, and certain public-sector and notified entities — who must deduct a percentage of the payment on contracts above the prescribed value when paying their suppliers, and deposit it with the government. Such deductors need a separate GST registration as a TDS deductor and must file a monthly return in form GSTR-7 and issue a TDS certificate to the supplier.
Who has to collect GST TCS
GST TCS applies to e-commerce operators — the marketplaces through which other sellers supply. The operator must collect a small percentage of the net value of taxable supplies made through its platform and deposit it against each seller’s GSTIN, reporting it in a monthly return in form GSTR-8. That collected tax then flows to the sellers’ cash ledgers, where they reconcile and claim it. If you run a marketplace or platform through which others sell, this obligation is yours.
What we handle
We take on the whole TDS/TCS stream: obtaining the separate GST registration you need as a deductor or operator, setting up the correct rate and process for deduction or collection, filing the monthly GSTR-7 or GSTR-8 on time, generating the certificates for your suppliers or sellers, and reconciling it all so both you and your counterparties are clean. It is specialised, deadline-driven work — exactly the kind that benefits from a practitioner who does it routinely.
For sellers on the other side of TCS
If you are a seller on a marketplace rather than the operator, TCS still affects you — the tax the platform collects is your money sitting in your cash ledger, which you must reconcile and claim through your returns. We handle that side too, as part of GST for e-commerce sellers, so the credit is never left behind.