New Delhi: Buying travel tickets online may become expensive, as the travel agents who provide online tickets and other related services will be liable to deduct 1% tax at source under the GST regime. They have been classified as e-commerce operators, the Central Board of Excise and Customs (CBEC) said on Wednesday.
The amount so collected is called tax collected at source or TCS but this provision has been kept in abeyance, for the time being, reports GN.
The (CBEC), in a fresh set of frequently asked questions (FAQs), said the TCS requirement would not apply to someone selling own products through a website. Only applicable GST for the goods would be levied in that case.
“Online travel agents providing services through digital or electronic platform will fall under the category of ECO (e- commerce operator) liable to deduct TCS under Section 52 of the CGST Act, 2017,” the CBEC said.
CBEC also clarified that the benefit of threshold exemption is not available to an e-commerce operator or a supplier on the e-commerce platform. Businesses with turnover up to Rs 20 lakh are otherwise exempt from GST.
The CBEC said that tax has to be collected during the month in which the amount of collected from the recipient. Besides, the tax amount collected by the operator will have to be paid to the government within 10 days after the end of the month in which the amount was collected.
“Any officer not below the rank of Deputy Commissioner may issue a notice to the electronic commerce operator to furnish such details within a period of 15 working days from the date of service of such notice,” the CBEC said.
It further clarified that suppliers selling their own products through a website hosted by him will also fall under the definition of an e-commerce operator, but there they need not deduct TCS.