TCS under Section 52
Tax Collected at Source (TCS) under Section 52 is the amount an e-commerce operator collects — currently 0.25% CGST + 0.25% SGST (or 0.5% IGST) — on the net taxable supplies of sellers on its platform.
Section 52 makes e-commerce operators collect TCS on the net value of taxable supplies made through them by other sellers. The operator deposits it and files GSTR-8; the seller then claims that TCS as a credit in the electronic cash ledger. The seller must reconcile GSTR-8 data against its own sales.
When you sell through a marketplace, the operator withholds a small percentage of your net taxable sales as TCS and pays it to the government against your GSTIN. The operator reports this in Form GSTR-8, and the amount is credited to your electronic cash ledger — effectively an advance you can use to pay output tax.
For reconciliation, the seller must match the TCS reflected in GSTR-8 (and auto-drafted into their portal) against their own platform sales, and confirm the credit has reached the cash ledger. Section 52 TCS is distinct from ITC and from GST-TDS under Section 51 — it is collected by the platform, not deducted by a buyer. Sellers on several platforms must reconcile each operator's GSTR-8 separately, since payouts, commissions and TCS differ across marketplaces.
The Recoup angle: Recoup reconciles marketplace payouts and GSTR-8 TCS against your sales register so no collected tax goes unclaimed.