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.

What is GSTR 8?

GSTR-8 Return is the return filed to declare the Tax Collected at Source (TCS by E-Commerce Companies.  It must be filed every month on or before 10th by e-commerce companies.

Just like Job Work, e-commerce transactions also involve a different buy-sell arrangement, hence need special attention in GST Law. As per section 52 of CGST Act 2017, a person who owns, operates or manages an E-commerce platform, is liable to collect taxes while making taxable sales on behalf of other suppliers of goods or services, through his online platform, and as such, the tax collected is known as TCS i.e. Tax Collected at Source.

The provision for TCS was deferred multiple times since the implementation of GST before 1st October 2018 when it was made applicable by GST Notification 51/2018-Central Tax dated 13-9-2018 

Let’s dig deeper to the important aspects of GSTR 8: Beginning with the definition of an e-commerce operator to penalties, this article will cover everything you want to know about GSTR 8.

Who needs to file GSTR 8?

Any person or organization owning, operating, or managing an E-commerce platform, offering the online platform for taxable sales of goods and services owned by other suppliers is known as an E-commerce operator. The Ecom operator is required to collect TCS from its suppliers. The applicability of TCS collection depends upon the following 3 factors:

• The person applying is a registered E-commerce operator.
• Taxable sales procured by the operator on behalf of other suppliers (and not for self-owned supplies)
• A consideration in respect of such supplies is collected by the operator.

The E-commerce Operator is liable to collect tax @1% (i.e. 0.5% CGST and 0.5% SGST and 1% For IGST) of the net value of taxable sales made through the online platform by other suppliers. This tax needs to be deposited with the government using form GSTR 8.

Due Date for filing of GSTR 8

A registered TCS collector has to deposit the collected amount within a span of 10 days after the end of the month for which the TCS had been collected using GSTR 8

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.

Best software to reconcile GST data faster and ensure 100% compliance – IRIS GST Software

As a registered taxpayer, reconciling your purchase invoices with the supplier-uploaded invoices on the GST system is a critical activity as it determines your ITC claim. Further, the Government issues legal notices to taxpayers for discrepancies in the ITC claimed in GSTR 3B and the amount as per supplier uploaded details. Our Smart Reconciliation comes in handy for managing reconciliation tasks in a timely, efficient and easy manner.

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