OTA Payout Deductions: TDS 194-O, GST TCS & GSTR-8 | India

Short answer: When a guest books through an online travel agency (OTA), the OTA usually deducts two small taxes before paying you. One is income-tax TDS: 0.1% of the gross amount, under section 194-O of the 1961 Act since 1 October 2024 and under section 393(1) of the Income-tax Act, 2025 from 1 April 2026. The other is GST TCS under section 52 of the CGST Act, at 0.5% of the net taxable value since 10 July 2024, which applies if you are GST-registered. Neither is a fee or lost money. TDS is credited against your income tax when you file your ITR. TCS reaches your GST electronic cash ledger after you accept and file it in the TDS and TCS Credit Received form on the GST portal.

This is general information, not tax advice. Rules and section numbers change, so confirm your position with a chartered accountant.

1. TDS on OTA payouts (section 194-O, now section 393)

• Who deducts: the e-commerce operator (the OTA) that facilitates your booking.
• Rate: 0.1% of the gross amount of the sale or service, from 1 October 2024 (cut from 1% by the Finance (No. 2) Act, 2024).
• From 1 April 2026: the Income-tax Act, 2025 replaces the 1961 Act. This TDS is now section 393(1), Table Sl. No. 8(v), still at 0.1% of the gross amount with a nil threshold. https://www.incometaxindia.gov.in/w/section-393-5
• No PAN: if the OTA doesn't have your PAN, TDS is 5% (section 206AA of the 1961 Act; section 397(2) from FY 2026-27). https://www.incometaxindia.gov.in/documents/d/guest/faqs-on-higher-rate-of-tds-under-section-397
• GST in the base: under CBDT Circular 23/2017, where GST is shown separately on the invoice, TDS is deducted on the amount excluding GST. If the OTA pays you before raising or crediting an invoice, it may deduct TDS on the full amount including GST; check with your CA.
• Small-owner exemption: an individual or HUF owner whose gross bookings through that OTA stay at or below ₹5 lakh in the financial year, and who has given PAN or Aadhaar, is not subject to this TDS (section 194-O(4) of the 1961 Act; section 393(4), Table Sl. No. 11, of the 2025 Act).

How to claim it back

1. Make sure the OTA has your correct PAN.
2. After each quarter, check Form 26AS and the Annual Information Statement (AIS) on the e-filing portal: https://www.incometax.gov.in/iec/foportal/
3. Match the TDS lines to your OTA statements. If something is missing, ask the OTA to correct its TDS return.
4. Claim the TDS in your income tax return. If total TDS is more than your tax, the excess comes back as a refund.

Primary source: Income Tax Department, section 393, https://www.incometaxindia.gov.in/w/section-393-5

2. GST TCS under section 52 (GST)

• Who collects: the OTA, as an e-commerce operator, when it collects payment for your supply.
• Rate: 0.5% of the net value of taxable supplies (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST), from 10 July 2024 under Notification No. 15/2024-Central Tax. It was 1% before that. https://gstcouncil.gov.in/sites/default/files/2024-09/central-tax-15-2024-11072024.pdf
• When it doesn't apply: hotel accommodation booked through an e-commerce operator is a notified service under section 9(5). Where the property is not liable to register for GST, the OTA pays the GST itself, and no TCS is collected from you (Notification No. 17/2017-Central Tax (Rate)).

GSTR-8 and how to claim TCS

1. The OTA files GSTR-8 each month (due by the 10th of the following month) with the TCS it collected against your GSTIN.
2. If TCS was collected, log in to the GST portal (https://www.gst.gov.in/) and go to Services > Returns > TDS and TCS Credit Received. Pick the period, click Search, then Prepare Online. Accept or reject each entry, then File. Do this before you file GSTR-3B for that period. Guide: https://tutorial.gst.gov.in/userguide/inputtaxcredit/manual_tds_and_tcs_credit_received.htm
3. The credit reaches your electronic cash ledger after you file that form, not before. You can use it to pay GST, or claim a refund of any excess.
4. If an amount is wrong, ask the OTA to amend its GSTR-8.

Primary sources: CGST Act section 52 and e-commerce FAQ (CBIC/GST Council), https://cbic-gst.gov.in/ and https://gstcouncil.gov.in/sites/default/files/2024-02/faq-e-commerc.pdf

3. A worked example (Example numbers, not data)

A GST-registered homestay gets a ₹10,000 booking (room value before GST) through an OTA.

• TDS at 0.1%: ₹10, if the OTA deducts at the time of credit and GST is shown separately. If the OTA pays first, TDS is on the amount including GST.
• TCS at 0.5%: ₹50.
• These ₹60 sit alongside the OTA's commission. Commission is a cost. TDS and TCS are credits you can claim back.

4. Monthly checklist

• Download each OTA's payout statement.
• Match TDS to 26AS/AIS each quarter.
• File the TDS and TCS Credit Received form each month that TCS was collected, before GSTR-3B.
• Keep booking-level records so the numbers reconcile.

Please check with your CA before filing. Your treatment depends on your registration, turnover and contracts with each OTA.

From BitLegacy: keeping booking-level records by source makes OTA reconciliation easier. BitLegacy records each booking with its source and keeps a GST register. See https://www.bitlegacy.in/blog/hotel-gst-register-accounting-india and https://www.bitlegacy.in/blog/ota-commission-vs-direct-bookings-india