Goods and Services Tax (GST) was implemented in India with an aim to create a unified taxation system that would simplify the tax structure and promote economic growth. Along with the implementation of GST, the concept of Tax Collected at Source (TCS) was introduced. TCS is collected by the seller from the buyer at the time of sale of certain specified goods or services. GSTR 8 is the return that needs to be filed by the seller who is required to collect TCS under GST. In this article, we will provide a detailed overview of TCS and GSTR 8, including the applicability, due dates, and compliance requirements.
When TCS under GST is applicable?
TCS provisions are applicable for e-commerce operators. So, any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce is required to register for TCS and file monthly GSTR-8 filings. GST TCS provisions are not applicable to e-commerce sellers.
Are E-Commerce Sellers liable to pay TCS?
Yes, E-commerce sellers will be liable to pay TCS at the rate of 1% of net value of goods or services sold through the e-commerce operator. However, the onus for collection, remittance and compliance with TCS provisions rests solely with the e-commerce operator. Hence, all e-commerce operators must make provisions on their systems to comply with TCS provisions.
What is GSTR-8 return?
GSTR-8 is a type of GST return that must be filed by all e-commerce operators registered under GST for collection of TCS. GSTR-8 filing will comprise of details like the amount of tax collected at source from e-commerce sellers and their GSTIN. The information provided by e-commerce companies on GSTR-8 is made available to e-commerce sellers on their GSTR-2 filing.
Hence, on 15th of each month, while filing GSTR-2, all e-commerce sellers must verify the transaction and TCS information supplied by the e-commerce company on the GST platform.
Frequency of GSTR 8
An E-commerce operator needs to file monthly as well as annual returns, which can be attained as follows:
Monthly Returns: The TCS collector is required to file a TCS return in form GSTR-8 within 10 days after the end of the given month.
Annual Returns: The e-commerce operator can file his annual returns via form GSTR 9B. The Annual return needs to be filed by the 31st of December following the end of every financial year, wherein the e-commerce operator needs to provide reconciliation between financial accounting results and GST Returns. However, for the financial year 2017-2018, this provision of filing GSTR 9B is deferred.
Credit Claim: Upon the filing of GSTR 8 by the E-commerce Operator, the claim credit is automatically be reflected in Supplier’s Electronic Cash Ledger, which the Supplier can claim and use it for payments of taxes while filing GSTR 3B. Supplier will also get the TCS details auto-populated in the GSTR 2X form.
GST Reconciliation of GSTR 8
All suppliers need to reconcile the supplies reported by them in their GSTR 1 and the supplies details provided by e-commerce operators in their GSTR 8. Based on the auto-populated details available in GSTR 2A, supplier needs to match the gross sale value, sales returns value, net sale values and tax amounts with the details provided in GSTR 1.If there is any discrepancy in the value of supplies, the supplier will have to pay the differential amount of output tax along with interest.
The Bottom Line
GSTR-8 is an essential compliance requirement for e-commerce operators in India. It involves the reporting of supplies, TCS, and reconciliation with other GST returns. By understanding the bottom line of GSTR-8 and adhering to its filing requirements, e-commerce operators can contribute to the efficient functioning of the GST system while avoiding penalties and legal issues.
Frequently Asked Questions:
Is GST frequency monthly or quarterly?
A person with turnover up to Rs. 5 crore in the preceding year can file return on quarterly basis. However, he can choose to file on monthly basis also. If he select to file on quarterly basis then GSTR-1 and GSTR-3B, both will be filed on quarterly basis, otherwise both will be filed on monthly basis.
What is the maximum late fee for Gstr-8?
In case if the GSTR-8 is not filed on time then there is a penalty of 200 INR per day that includes 100 INR CGST and 100 INR SGST/UTGST. However, the maximum amount of penalty that is applicable to the taxpayer is 5,000 INR
How do I choose GST return filing frequency?
Navigate to Services > Returns > Manage Return Profile (Trial) on the dashboard.
Select the Financial Year.
Click on Change Return Frequency button to change the return frequency.
What if turnover is less than 20 lakhs GST?
20 lakhs or Rs. 40 lakhs as the annual turnover threshold for GST exemption in case of providers of goods. Note- Businesses may voluntarily register for GST even if their turnover is below the threshold limit. This can help them take advantage of certain benefits and simplify their tax compliance.