A TCS (tax collected at source) deduction form is the GSTR-8. Every month, e-commerce businesses that are GST-registered must submit a GSTR-8 return. The information on supplies made through e-commerce platforms (to both registered and unregistered clients) and the TCS amount collected with regard to those supplies are all contained in this form.
The document also includes information about the consumers, the amount of owed tax, and the amount of paid tax. GSTR-8 filing is required for registered e-commerce operators under Section 52 of the Central Goods and Service Tax Act of 2017 (“CGST Act”). This is because, according to the same law, the e-commerce platform is defined as a location that various vendors and customers use for receiving and supplying goods or services to the online market. Moreover, registration under the GST regime and receipt of registration from the tax collecting source are mandated for the e-Commerce operator.
- Who is an “e-commerce operator,” exactly?
E-commerce operators are the people in charge of or the owners of websites like Flipkart, Amazon, etc. Operators of e-commerce sites offer a platform through which vendors can connect with a large number of customers. On the other side, clients can view a variety of goods from various vendors at a fair price.
- Key Characteristics of the GSTR-8 Return Form
Each and every e-commerce operator that is GST-registered is required to submit the GSTR-8 return.
Part D of GSTR 2A contains all the information on GSTR-8, which was filed by the e-commerce operator, and it must be completed by the 10th of the month after the tax period in question.
The online shop takes TCS from the provider of goods and services and pays the money to the government. On each item and service sold through the portal, the e-commerce providers withhold 1% of TCS.
- What are the benefits of filing a GSTR-8 return?
As you are already aware, GSTR-8 displays all the information regarding the purchases made through e-commerce platforms as well as the total amount received for those purchases. The TCS provisions went into effect on October 1st, 2018. After filing a GSTR-8 return, suppliers can now claim the input credit for all TCS that has been deducted by the e-commerce operator after TCS becomes effective.
For example, cloth-house Enterprise sells 30,000 rupees worth of clothing through the online retailer Flipkart. Flipkart will now deduct 1% TCS as an online retailer and deposit Rs. 300 to the government. After Flipkart files GSTR-8, this sum of Rs. 300 will appear in the GSTR-2A of Cloth-house Enterprise.
- Requirements & deadlines
All online merchants who have registered for GST are required to submit the GSTR-8 by the 10th of the next month for each of their transactions.
- GSTR-8 late payment fees and penalties for missing due dates
An e-commerce operator would be fined Rs. 100 for CGST and Rs. 100 for SGST every day if the GSTR-8 is not filed by the deadline. Hence, the day total will be 200. (Maximum Rs. 5000). IGST delayed submission is not subject to a late fee.
It is also necessary to pay 18% interest yearly in addition to the penalty fee. The time between the due date and the actual date of filing GSTR-8 must be added up by the taxpayer in order to determine the total taxable amount.
- Conditions for submitting the GSTR-8 Return
The details listed below must be provided in order to file the GSTR-8.
You must have a GSTIN, which is a 15-digit PAN, and be a registered taxpayer under the GST regime.
Your company must have a yearly aggregate turnover of at least 20 lakh rupees (Rs. 10 lakhs in the North East States)
You must have an online marketplace where more businesses or traders can sign up and offer their products or services to clients.
The return is available to all registered taxpayers who have not chosen the composition scheme or obtained a Unique Identification Number (UIN). This return is not applicable to non-resident taxpayers.
You need to keep track of every tax you have collected at the source for purchases made using your e-commerce platform.
If any wrong information is submitted, it can be corrected in the GSTR-8 for the following month.
By the earlier of the date of submitting the annual return or the GSTR-8 due date for the month of September of the fiscal year, corrections may be made.
