GSTR-8: A Complete Guide for E-Commerce Operators
Collecting TCS
1. What is GSTR-8?
GSTR-8 is a monthly GST return that must be filed by e-commerce
operators who collect Tax Collected at Source (TCS) under GST law.
🔹 It contains details of TCS
collected from suppliers who sell their goods/services through an e-commerce
platform.
🔹
It also shows the TCS deposited with the government and the details of suppliers
who can claim TCS credit.
2. Who Should File GSTR-8?
The following businesses must file GSTR-8:
✔ E-commerce operators (Amazon, Flipkart, Zomato,
Swiggy, etc.)
✔ Marketplaces that facilitate online sales
✔ Platforms that collect payments on behalf of
sellers
🚨 Exception: If an
e-commerce platform only lists products but does not collect payments,
it does not have to collect TCS or file GSTR-8.
3. What is TCS Under GST?
TCS (Tax Collected at Source) is 1% of the net taxable
sales made through the e-commerce platform:
✅
0.5% CGST + 0.5% SGST (for intra-state sales)
✅
1% IGST (for inter-state sales)
📌 Example:
- A
seller sells goods worth ₹50,000 on an e-commerce platform.
- The
e-commerce operator collects ₹500 (1% TCS) before transferring the
payment to the seller.
- This
₹500 is deposited with the government and reflected in GSTR-8.
4. Due Date for Filing GSTR-8
📅 The 10th of every
month (for the previous month).
✔ Example: For sales made in March 2025,
GSTR-8 must be filed by April 10, 2025.
5. Late Fee & Penalty for Non-Filing
❌ Late Fee: ₹200 per day
(₹100 CGST + ₹100 SGST)
❌
Interest: 18% per year on the pending TCS amount
6. Key Details Required in GSTR-8
|
Table No. |
Details Required |
|
1 |
GSTIN of the
e-commerce operator |
|
2 |
Legal name of
the e-commerce operator (Auto-filled) |
|
3 |
Details of TCS
collected (Supplier GSTIN, taxable amount, TCS deducted) |
|
4 |
Amendments
(Corrections to past returns, if any) |
|
5 |
Interest on late
payment (if applicable) |
|
6 |
Payment of
TCS (How much TCS is paid) |
7. Step-by-Step Process to File GSTR-8
Step 1: Log in to the GST Portal
✔ Go to gst.gov.in
✔ Log in using your GSTIN, username, and password
Step 2: Navigate to GSTR-8
✔ Click on ‘Returns
Dashboard’
✔ Select ‘GSTR-8’ for the relevant month
Step 3: Enter TCS Details
✔ Fill in supplier details
(GSTIN, taxable value, TCS collected)
✔ Make any amendments (if required)
Step 4: Pay TCS Amount
✔ Deposit TCS collected
to the government via cash ledger
Step 5: Submit & File GSTR-8
✔ Click ‘File Return’
using Digital Signature (DSC) or OTP (EVC verification)
8. Benefits of Filing GSTR-8 on Time
✔ Compliance with GST law
✔ Avoids penalties & interest
✔ Suppliers can claim TCS credit
✔ Smooth reconciliation for sellers
9. How Can Suppliers Claim TCS Credit?
✅ The TCS collected appears in
the supplier’s GSTR-2A automatically.
✅
The supplier can claim this TCS credit while filing GSTR-3B.
10. Important Points to Remember
✔ TCS applies only to taxable
sales on e-commerce platforms.
✔ GSTR-8 is mandatory, even if no TCS was
collected in a month (Nil Return).
✔ Once filed, GSTR-8 cannot be revised;
corrections must be made in future returns.
11. FAQs (Common Questions)
🔹 Q1: Can I correct
mistakes in GSTR-8?
❌
No, but you can make corrections in the next month’s return.
🔹 Q2: What happens if
TCS is not collected or deposited?
⚠ Interest @18% per year applies, along with
late fees.
🔹 Q3: How does a
supplier view TCS details?
✅
Suppliers can see TCS credit in GSTR-2A automatically.
Final Summary
GSTR-8 is a
monthly return filed by e-commerce platforms to report TCS collected. File
it by the 10th of every month to stay compliant and avoid penalties.
Real-World Example: TCS Deduction
for an E-Commerce Seller
Scenario:
ABC Handicrafts is a small business based in Jaipur, India, specializing
in traditional Rajasthani handicrafts. They sell their products through Amazon
India.
Transaction Details:
- Product
Sold: Handcrafted Wooden Elephant
- Sale
Price (Excluding GST): ₹2,000
- GST
Rate: 12%
- Total
Sale Price (Including GST): ₹2,000 + ₹240 (GST) = ₹2,240
TCS Calculation: According to GST provisions,
e-commerce operators like Amazon are required to collect TCS at 1% on
the net taxable value of goods sold through their platform.
- Net
Taxable Value: ₹2,000
- TCS
(1% of ₹2,000): ₹20
Payment Flow:
- Customer
Payment: The customer pays ₹2,240 (₹2,000 + ₹240 GST) to Amazon.
- TCS
Deduction: Amazon deducts ₹20 as TCS from the net taxable value.
- Amount
Remitted to Seller: Amazon transfers ₹2,220 (₹2,240 - ₹20 TCS) to ABC
Handicrafts.
Reporting and Compliance:
- Amazon's
Responsibility: Amazon will deposit the collected TCS (₹20) to the
government and report this in their monthly GSTR-8 filing.
- ABC
Handicrafts' Responsibility: ABC Handicrafts can view the TCS
collected in their GSTR-2A form and claim this ₹20 as a credit in
their GSTR-3B return, reducing their overall GST liability.
Impact on Cash Flow: For small businesses like ABC
Handicrafts, the immediate deduction of TCS means they receive slightly less
per transaction. However, since this TCS amount can be claimed as a credit, it
doesn't result in a financial loss but requires efficient cash flow management.
📊 Statistical Insight:
In the financial year 2022-23, over ₹1.2 lakh crore was
collected as TCS under GST, with e-commerce platforms contributing over 75% of
the total TCS collection.
🚀 Key Takeaways:
- E-commerce
platforms are mandated to collect TCS at 1% on the net taxable value
of goods/services sold.
- Sellers
can claim the TCS amount as a credit in their GST returns, ensuring no
additional tax burden.
- Proper
accounting and timely filing are crucial to ensure seamless credit claims
and compliance.
Understanding the TCS mechanism is vital for e-commerce
sellers to manage their finances effectively and remain compliant with GST
regulations.
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