GSTR-8 Filing for E-Commerce Companies

GSTR-8 filing must be filed every month on or before the 10th by e-commerce companies. Under GST, e-commerce companies have been defined as any person who owns, operates or manages a digital or electronic facility or platform for electronic commerce. E-commerce companies are required to obtain GST registration mandatorily and also be registered for tax collection at source (TCS). In this article, we look at the GSTR-8 monthly filing to be done by e-commerce companies in detail.

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

Tax Collection at Source (TCS) is a tax collection mechanism similar to TDS, wherein a 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.

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 for e-commerce sellers.

For example, a seller on Amazon [hereafter referred as “seller”] displays his/her goods on Amazon.in [hereafter referred 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.

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 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.

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.

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.

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.

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.

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