GSTR-8 Filing for E-Commerce Companies

1. Tax Collection at Source (TCS) for E-Commerce Companies

Tax Collection at Source (TCS) is a tax collection mechanism similar to TDS, wherein an E-commerce operator collects and remits tax on-behalf of the Government when a supplier supplies goods or services through its portal. For example, if a product is sold for Rs.10,000 on an e-commerce platform, the e-commerce platform would be required to deduct and remit Rs.100 as TCS to the Government.

2. 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.

For example, a seller on Amazon [hereafter referred to as “seller”] displays his/her goods on Amazon.in [hereafter referred to as “E-Commerce Operator]. On receiving an order for the product, the seller supplies the goods and raises an invoice. Money is collected by the E-Commerce Operator from the customer and passed on to the seller after deduction of commissions.

In such transactions, E-Commerce Operators will now be liable to deduct TCS at the rate of 1% from the supplier on the net value of goods/services sold through the E-Commerce operator.

3. 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.

4. 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.

5. What is the due date for GSTR-8 filing?

GSTR-8 filing is due on the 10th of each month for e-commerce operators registered for tax collection at source. GSTR-8 filing can be done online through the GST Common Portal. In addition to the monthly GSTR-8 filing, e-commerce operators will also be required to file an Annual Statement of Tax Collected at Source on or before 31st December following the end of every financial year.

6. What is the due date for remitting TCS payment under GST?

The amount of tax collected by an e-commerce operator as TCS must be deposited by the 10th of the following month. Hence, if total TCS of Rs.1 lakh was collected in the month of December, it must be remitted on or before 10th January.

7. Will input tax credit be provided for TCS payment?

Yes, input tax credit is provided for TCS payment deducted by an e-commerce operator. After the filing of GSTR-8 filing, the tax collected by the e-commerce operator is credited to the cash ledger of the e-commerce seller who supplied the goods/services. The supplier can then claim credit for the tax collected at source by the e-commerce operator.

8. What is the penalty for late filing fo GSTR-8 filing?

A penalty of Rs.25000 can be levied on an e-commerce operator for each GSTR-8 filing not filed on-time by an e-commerce operator. In addition to the penalty for late filing of GSTR-8, interest penalty or fine could also be levied for late payment of TCS deducted and not remitted on-time.

9. Requirements for Filing GSTR-8

There are few pre-condition for filing GSTR-8:

• E-commerce operator should have an active GSTIN, and he or she should be a registered person only then tax return can be submitted.
• Valid UserID and password is a must
• Ever eligible tax filer should have the correct digital signature(DSC), and it should have a registered mobile number on the portal.
• TCS amount should be collected only by the E-commerce Operator.

10. GSTR-8 Filing Procedure

Step: 1 Go to www.gst.gov.in.

Step: 2 Using valuable credentials login into GST portal.

Step: 3 Click Services—>Returns—>Returns Dashboard.

Step: 4 Select Financial Year & Return Filing Period.

Step: 5 Click SEARCH button.

Step: 6 File Return page gets displayed.

Step: 7 The displayed message box should be read by the taxpayers and it’s essential.

Step: 8 Under GSTR-8 click PREPARE ONLINE to prepare the return by making entries.

Step: 9 Under GSTR-8–>Return for Tax Collected at Source displayed below.

11. Details to Entered in Various Titles

• Detailed list of supplies attract TCS: By adding features of supplies attracting TCS.
• Details of all the supplies amendments attracting TCS: With the respect of an earlier tax period all the amend details of supplies will be tracked by attracting TCS.

12. Supplies details attracting TCS

Step: 1 Click Details of supplies attracting TCS –> Add Details(supplies attracting TCS)

Step: 2 Click ADD.

Step: 3 The TCS Details–>Add page.

Step: 4 In GSTIN of supplier field provided enter the supplier’s GSTIN. The system then auto-populates the name registered with the number.

Step: 5 Fill-up the gross value of the suppliers who made and amount of the suppliers returned to all the registered members.

Step: 6 Under IGST/CGST/SGST heads enter the collected amount.

Step: 7 Click SAVE.

Step: 8 TCS details added successfully and its displayed below.

Step: 9 Refreshing the particular page a taxpayer can edit or delete the added details.

Step: 10 Click BACK TO GSTR 8 DASHBOARD back to Form GSTR-8.

Step: 11 3.Details Of Supplies Attracting TCS in this the total net amount liable with tax details will get displayed as shown below.

13. Supplies attracting TCS with amendments to details

Step: 1 Click 4. Amendment to details of supplies attracting TCS.

Step: 2 Under Upload By E-Com Operator, the details amended and its invoices are uploaded by e-com operator in the previous period.

Step: 3 Under Rejection By Supplier, Edit the invoices which have rejected by suppliers.

Step: 4 Select Financial Year and Month on the drop-down.

Step: 5 In GSTIN of supplier field, enter the supplier report along with the tax period by the amended.

Step: 6 Click AMEND TCS DETAILS.

Step: 7 Optional to provide revised GSTIN of Supplier, suppliers revised gross values, supplies returned and amount of source and tax collected for GSTIN. Click SAVE

Step: 8 The page will get directed to the previous page where a message will be shown stating that TCSA details added successfully.

Step: 9 Refreshing the particular page a taxpayer can edit or delete the added details.

Step: 10 Click BACK TO GSTR8 DASHBOARD and it will go back to Form GSTR-8 Dashboard.

Step: 11 Under 4.Amendments to details of supplies attracting TCS in form GSTR-8 along with the tax details the total net amount will get displayed.

14. Procedure on Rejected By Supplier Tab

Step: 1 Select Rejected By Supplier Tab.

Step: 2 Click EDIT to edit the details.

Step: 3 By editing the details a person can amend the GSTIN, gross values of supplies and the revised supplies value returns and all tax columns. Click SAVE.

Step: 4 A message displays stating “Successful”

Step: 5 Amended details can be edited under the Action column.

Step: 6 Click Back and the page will land to form GSTR-8 Dashboard.

Step: 7 4. Amendments to details of supplies attracting TCS in form GSTR-8 and it will reflect the total net amount with the tax details.

15. Form GSTR-8 Preview

Step: 1 Once, entering all the details click PREVIEW DRAFT. The draft summary page of form GSTR8 will start downloading and it will be ready to review it.

Step: 2 Sample PDF shown below.

16. Procedure for Paying Tax

Step: 1 Click PROCEED TP FILE

Step: 2 As displayed a pop-up message on the top of the page as shown below click once and refresh the page by clicking Refresh.

Step: 3 5.Details of Intrest and 6, 7. Payment of Tax gets enabled once the status of form GSTR-8 is ready to file.

Step: 4 Click5. Details of Interest

Step: 5 Click BACK TO GSTR 8 DASHBOARD to go to form GSTR-8.

Step: 6 Click 6,7. payment of Tax

Step: 7 Payment of Tax page displayed below.

Step: 8 At the top of the page under the cash balance various heads are shown below.

Step: 9 Create challan, this is how the challan looks and the concerned person has to fill the following the provided box.

Step: 10 Select modes of payment and click GENERATE CHALLAN.

Step: 11 Challan gets generated as shown below.

Step: 12 Form GSTR-8 shown below it is called a summary page.

17. Filing form GSTR-8 along DSC/EVC

Step: 1 Select Declaration checkbox.

Step: 2 Select Authorized signatory –> Drop-down.

Step: 3 Click FILE GSTR8.

Step: 4 Click YES by reading the message carefully.

Step: 5 In Submit Application page click ISSUE WITH DSC or ISSUE WITH EVC.

• Submit with DSC by selecting the certificate sign in
• Submit with EVC by entering the OTP sent to the respective Email and registered mobile number in the GST portal and click the verify button.

Step: 6 One the success message gets displayed the status of the form GSTR-8 changes to “Filed.”

Step: 7 ARN gets generated by filing successfully on form GSTR-8 return.

18. Tax payment under Electronic Cash Ledger

Step: 1 Click Debit entries in electronic cash ledger for TCS/interest Payment.

Step: 2 Click BACK TO GSTR 8 DASHBOARD to verify with the Electronic Cash ledger.

19. Filed Return, Download

Step: 1 Click DOWNLOAD FILED GSTR8 to download the return.

Step: 2 The portal generates the final PDF as below: