What is the maximum rate of tax that an Electronic Commerce Operator (ECO) can collect on behalf of the government?
Understand the Problem
The question is asking for the maximum tax rate that can be collected by an Electronic Commerce Operator on behalf of the government. It presents multiple choice options that indicate different possible tax rates.
Answer
1% (0.5% CGST + 0.5% SGST)
The maximum rate of tax that an Electronic Commerce Operator (ECO) can collect on behalf of the government is 1%, divided as 0.5% CGST and 0.5% SGST for intra-state supplies.
Answer for screen readers
The maximum rate of tax that an Electronic Commerce Operator (ECO) can collect on behalf of the government is 1%, divided as 0.5% CGST and 0.5% SGST for intra-state supplies.
More Information
E-commerce operators are required to collect tax at source (TCS) at this rate, ensuring proper tax accounting and compliance for all sales made through their platform.
Tips
One common mistake is confusing the rate of TCS with the GST rate applicable to goods and services, which can vary widely.
Sources
- GST on notified services by e-commerce operators u/s 9(5) - ClearTax - cleartax.in
- E-commerce Operator Under GST - Pice - piceapp.com
- E-Commerce - GST Council - gstcouncil.gov.in
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