GSTR-8 is a return that e-commerce operators must file if they are obligated to deduct TCS (Tax collected at source) under GST. GSTR-8 comprises information on a supply made through an e-commerce platform and the amount of TCS collected on such goods. E-commerce businesses must file GSTR-8 forms on or before the 10th of each month. E-commerce firms are defined as anybody who owns runs or manages a digital or electronic facility or platform for electronic commerce under GST. E-commerce businesses must get GST registration and be registered for tax collection at the source (TCS). In this blog, we will discuss the complete filing process for GSTR-8, including eligibility, due dates, and other related topics.
Who is Needed to File GSTR 8?
GSTR 8 must be filed by an e-commerce firm that is GST-registered. These companies must register for GST and get tax collection at source registration. It includes supplies delivered by the e-commerce platform to registered and unregistered clients and tax paid and owed. The paperwork detailing the amount of tax received from vendors at the point of sale is submitted by the e-commerce operator.
Is it Required to File Form GSTR-8?
It is not necessary to file Form GSTR-8 for each tax period. When goods are supplied through such operator and they have collected any TCS amount during the said tax period, or they have to amend any details declared in earlier returns on their own or on account of any details rejected by the supplier, which is auto-populated in Table 4 of the said return in that tax period, the e-commerce operator needs to file Form GSTR-8 for that tax period.
Why is GSTR-8 Essential?
GSTR-8 outlines the supply made through the e-commerce platform as well as the TCS collected on such deliveries. The Government has currently placed the TCS provisions on hold. It will become effective on October 1st, 2018. If TCS is applicable, the supplier can claim the input credit for the TCS deducted by the e-commerce operator when the e-commerce operator files GSTR-8. The amount of such TCS will be shown in Part C of the supplier’s Form GSTR-2A.
For example, assume that Shanta Enterprises supplies garments worth Rs 20,000 through Amazon. Now Amazon being the e-commerce operator deduct the TCS @ 1% and deposit Rs 200 with the Government. The amount of Rs 200 will be shown in GSTR-2A of Shanta Enterprises after the filing of GSTR-8 by Amazon.
Under GST When the TCS Would be Applicable?
For the e-commerce operators, the TCS provisions would be subjected to be applied. Hence any individual who owns, functions, or handles the digital or electronic utility or platform towards electronic commerce would be needed to enroll for the TCS and the monthly GSTR-8 filings. Towards the e-commerce sellers, the GST TCS provisions would not be pertinent.
For instance, an Amazon seller (referred “seller” as of now) lists goods on Amazon.in (referred “E-commerce operator” as of now). The seller provides the goods and generates an invoice after receiving an order for the product. The E-commerce operator collects money from the customer, makes the deduction, and passes it on to the seller.
In these transactions, 1% of TCS will be deducted from the supplier by E-commerce operators. This deduction will be on the net value of goods/services sold by the E-commerce operator.
Important Features of the GSTR 8 Return Form
- Every registered E-commerce operator must file GSTR 8.
- Compulsorily, every E-commerce operator must file GSTR-8 on or before the 10th of the coming month of a tax period.
- In part D of GSTR 2A, the details of the GSTR-8 which is filed by the E-commerce operator are present.
- GSTR-8 contains 8 headings and most of them are auto-filled.
- From the supplier of goods and services and returns to the government, E-commerce portals deduct the Tax Collection at Source (TCS).
- On all the goods and services which are sold out through the portals, 1% of TCS is paid by E-commerce operators.
Latest Update:
Advisory for the Changes in GSTR 8
Refer to the GST Council decision to the effect that the TCS rate has been lessened from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024.
Therefore, the following important aspects concerning the TCS rates effective from 10.07.2024 are to be noticed:
1. Period from 1st July to 9th July 2024:
• In this period, the old TCS rate of 1% will continue to apply. The assessees are required to collect & report TCS at this rate for all transactions that happened between these dates.
2. With effect from 10th July 2024:
• An amended TCS rate of 0.5% will come into force from 10th July 2024. The assessee should ensure that their systems and processes are updated to show this new rate for all transactions that occurred from 10th July forward.
Some assesses have been notified about the validation error at the time of filing the GSTR-8 for July 2024, it is to be notified that the GSTN team is working on the revisions announced by the GST council for the GSTR 8, which is anticipated to be finished in the forthcoming couple of days and the users shall be enabled to file the returns from 06th August 2024 midnight onwards. Any inconvenience induced in this matter is regretted.
GSTR 8 Eligibility and Due Dates December 2024
An E-commerce operator can file GSTR-8 after the month ends and the last date to file the details is the 10th of the next month of the tax period.
| Return Monthly | Due Date |
|---|---|
| December 2024 | 10th January 2025 |
| November 2024 | 10th December 2024 |
| October 2024 | 10th November 2024 |
| September 2024 | 10th October 2024 |
| August 2024 | 10th September 2024 |
| July 2024 | 10th August 2024 |
| June 2024 | 10th July 2024 |
| May 2024 | 10th June 2024 | April 2024 | 10th May 2024 |
| March 2024 | 10th April 2024 |
| February 2024 | 10th March 2024 |
| January 2024 | 10th February 2024 |
| December 2023 | 10th January 2024 |
| October 2023 | 10th November 2023 |
| September 2023 | 10th October 2023 |
Important Terms Related to GSTR 8
- GSTIN: Goods and Services Taxpayer Identification Number
- UIN: Unique Identification Number
- UQC: Unit Quantity Code
- HSN: Harmonised System of Nomenclature
- SAC: Services Accounting Code
- POS: Place of Supply of Goods and Services
- B2B: Business to business
- B2C: Business to Customer
Interest & Penalty on Late Payment of GST
If you delay filing the GSTR-8 return, you are bound to pay Rs.200/day where Rs. 100 is CGST and Rs. 100 is SGST/UTGST per day. But the taxpayer is liable to pay a maximum penalty of Rs. 5,000.
Moreover, with the late fee, the taxpayer is also liable to pay an annual interest of 18% based on the amount of unpaid tax.
