Your Fiverr or marketplace earnings statement shows a line called "GST/TCS" next to a deduction under Section 194-O, and your CA asks whether you are claiming the credit. Most freelancers have never heard of GST TCS, assume it is the same as the income-tax deduction, and either ignore it or worry that they are losing money. It is a separate thing with its own rules.
GST TCS means tax collected at source under Section 52 of the CGST Act. An e-commerce operator collects it from a registered supplier on the net value of taxable supplies made through its platform, and the amount is credited to the supplier's GST cash ledger. This post explains what it is, how it differs from the 194-O deduction, what happens if you have no GSTIN, and the one question nobody has answered officially.
GST TCS is collected by the platform on supplies made through it
An e-commerce operator is any person who owns, operates or manages a digital platform for the supply of goods or services. Under Section 52, the operator collects a percentage of the net value of taxable supplies made through the platform, but only where the operator itself collects the payment from the buyer. A site that only introduces buyer and seller does not collect it. The GST Council's FAQ on TCS sets this out.
Net value means the supplier's taxable supplies in the month through the platform, less supplies returned. It is worked out for each GSTIN, and it excludes services on which the platform itself pays the tax. The operator reports it in GSTR-8 and deposits it by the 10th of the following month.
The rate is 0.5 percent in total
When the scheme began in 2018, the rate was 1 percent. Notification 15/2024-Central Tax cut the central tax part from 0.5 percent to 0.25 percent (read the notification). Since 10 July 2024 the central tax part is 0.25 percent, and tax guides put the total at 0.5 percent: 0.25 percent CGST plus 0.25 percent SGST for an intra-state supply, or 0.5 percent IGST for an inter-state one. Older GST Council flyers still show 1 percent, so check the date on anything you read.
The amount is held back from your payout. On a ₹1,00,000 taxable supply that is ₹500, shown as a deduction on your statement.
A registered supplier gets the credit in the GST cash ledger
Once the operator files GSTR-8, the TCS appears in the electronic cash ledger of the registered supplier, in the matching tax head, and you can use it to pay your GST liability. If you cannot use the balance, the excess in the cash ledger can be claimed as a refund under Section 54(1). Compare your platform statement with your GST cash ledger each month, as part of the routine in the guide to GST return filing for freelancers.
The credit goes to a GSTIN. If you are not registered, there is no ledger for it to land in.
Under the registration threshold, the platform is not required to collect it
Suppliers of services through an operator were exempted from compulsory registration while their aggregate turnover stays within ₹20 lakh (₹10 lakh in special category states). The GST Council's FAQ concludes that, because such suppliers are not liable for registration, operators need not collect TCS on their services. That FAQ dates from 2018, so check the current notification with your CA before relying on it. The guide on when a freelancer must register for GST covers the threshold.
If your platform still deducts something labelled GST or TCS, that is the platform's own treatment, and no official route for recovering it is published. Keep the statement, ask the platform to explain the line, and ask your CA.
TCS on exports through a foreign platform has no official answer
No official text says Section 52 applies to such an export, and none says it does not. The GST Council's FAQ speaks about suppliers selling to customers in India. It says nothing on a service exported to a client abroad through a platform, and CBIC has not published a clarification on that exact case. Fiverr's own India sellers page lists a 0.5 percent GST/TCS line, but that shows what Fiverr says it does, not what the law requires. Whether a zero-rated export counts as a taxable supply for Section 52, and whether a foreign platform is collecting under that section, are points to put to a CA.
What you can do now: download your earnings statements, note the exact label and amount of every deduction, and check whether it appears in your GST portal. The guide on GST on Upwork and Fiverr fees covers the export treatment of your sale itself.
194-O is income tax, and it is claimed in your return
Section 194-O requires an e-commerce operator to deduct income tax on payments to participants. The rate was cut from 1 percent to 0.1 percent from 1 October 2024, and 5 percent applies where PAN is not provided. It is income-tax TDS, so it shows in Form 26AS and AIS and you claim it as credit when you file, as the guide on a TDS credit that does not match 26AS explains. It is not set off in the GST ledger, and the two are never interchangeable. The Income-tax Act 2025 renumbers sections from 1 April 2026, so a platform may label the line differently.
Keep your invoices and statements matched
Rinto creates GST-ready invoices with automatic IGST, CGST and SGST calculation, so your own invoices stay consistent while you reconcile platform statements. It does not file GST returns or decide how platform deductions are treated, which you do on the GST portal or through your CA. The guide to GST invoices for freelancers shows what a compliant invoice contains. This post is general information, not tax advice.
Frequently Asked Questions
What is TCS under GST?
TCS under GST is tax collected at source under Section 52 of the CGST Act. An e-commerce operator collects it from a registered supplier on the net value of taxable supplies made through the platform, when the operator collects the payment. The operator deposits it by the 10th of the next month and files GSTR-8. The supplier then sees the amount in the GST cash ledger and can use it to pay GST liability. It is separate from income-tax deductions such as Section 194-O.
What is the current rate of GST TCS?
From 10 July 2024, tax guides put the rate at 0.5 percent in total: 0.25 percent CGST plus 0.25 percent SGST for an intra-state supply, or 0.5 percent IGST for an inter-state supply. It was 1 percent when the scheme started in 2018, and Notification 15/2024-Central Tax cut the central tax part from 0.5 percent to 0.25 percent. Older flyers on the GST Council site still show 1 percent, so check the date on anything you read, and confirm the current rate with your CA.
How is GST TCS different from TDS under Section 194-O?
GST TCS is a GST collection under Section 52 of the CGST Act, credited to your GST electronic cash ledger and used against GST liability. Section 194-O is income-tax TDS, deducted by the platform at 0.1 percent from 1 October 2024, or 5 percent without PAN. It appears in Form 26AS and AIS, and you claim it as credit in your income-tax return. They are different taxes, filed through different returns, and one cannot be used against the other. Keep both statements for each financial year, since your CA will need them at filing.
Does an unregistered freelancer get a credit for TCS?
No. The credit goes into the GST electronic cash ledger of a registered supplier, so a freelancer with no GSTIN has nowhere to receive it. The GST Council's FAQ also says operators need not collect TCS on services from suppliers exempt from registration under the turnover threshold. If your platform still shows a GST or TCS deduction, keep your statements, ask the platform what the line is and which law it relies on, and ask a CA whether the amount can be recovered.
Does GST TCS apply to export income from Fiverr or Upwork?
No official text answers this. The GST Council's FAQ covers suppliers selling to customers in India and does not address a service exported to a foreign client through a platform. Fiverr's help page lists a 0.5 percent GST/TCS line for Indian sellers, but that describes what Fiverr says, not what the law requires. Download your statements, note every deduction, and ask your CA how your export income and these deductions should be treated in your returns. Until you have an answer, do not claim the deduction twice, once as GST credit and once as income-tax credit.