The Central Board of Indirect Taxes and Customs (“CBIC”) vide Circular No. 74/48/2018 – GST dated November 05, 2018 which clarifies that the Tea Board of India being the operator of the electronic auction system for trading of tea across the country including for collection and settlement of payments, admittedly falls under the category of electronic commerce operator liable to collect Tax at Source as per section 52 of the CGST Act, 2017. It has further clarified that the Tea Board should collect TCS from the sellers (i.e. tea producers) on the net value of supply of goods and from the auctioneers on the net value of supply of services as per the notified rate i.e.(vide N. No. 52/2018 – CT ) in terms of section 52 of CGST Act, 2017.
Further Circular can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-74.pdf;jsessionid=E7C991E9DBD3EB36163E3380560845CE