What is GST on E-commerce Operator services?
Nexa Consultancy | Startup & Finance Glossary
Under Section 52 of the CGST Act, e-commerce operators like Amazon and Flipkart are required to collect Tax Collected at Source (TCS) at 1% on the net value of taxable supplies made through them by other suppliers.
Startup Example: A D2C brand sells a product worth ₹1,000 through Flipkart. Flipkart will deduct TCS at 1% (i.e., ₹10) on the net taxable value before remitting the payment. The D2C brand can later claim this TCS as a credit in its electronic cash ledger.
Marketplace reconciliation is a key part of our D2C finance services.