TCS
Also called: tax collected at source
What is TCS?
TCS, or tax collected at source, is tax a seller collects from the buyer on specified transactions — certain goods, high-value sales and, under GST, supplies made through e-commerce operators — and deposits with the government.
Why TCS matters
Sellers on aggregator platforms often see TCS deducted from their payouts without recognising it as their own tax already paid. Left unreconciled, it looks like a permanent commission loss instead of a credit.
How TCS works in practice
Reconcile the TCS shown in your platform statements against your tax account each quarter, and claim it against your liability. Under GST, the operator's collection also appears in your electronic cash ledger.
Frequently asked questions
No. It is your own tax collected in advance, and it offsets your final liability once reconciled.