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GSTR-8: Return For Tax Collected At Source
Initially, the GST regime acknowledged the unique position of e-commerce platforms as facilitators of goods and services. To capitalize on this position for an effective tax collection measure, the concept of Tax Collected at Source (TCS) was introduced. This necessitated the creation of Form GSTR-8. Through this form, the government is able to track supplies made via e-commerce platforms or operators, thereby ensuring accurate and timely collection of GST on behalf of the suppliers of e-commerce platforms.
Moreover, Form GSTR-8 has been adjusted and refined to address the practical challenges for e-commerce operators and to streamline the tax collection process
GSTR-8
The evolution of Form GSTR-8 demonstrates the ongoing efforts to strike the balance between the regulatory oversight and ease of doing business, ensuring that India’s tax ecosystem remains adaptable and also effective in the face of technological advancements and shifting needs of businesses.
Form GSTR-8 is very crucial for e-commerce operators. According to the GST regulations, this form requires the details of suppliers registered under GST and the supplies made through the e-commerce platform. In this form, information on the total value of supplies and tax collected from such supplies. Therefore, Form GSTR-8 ensures that the tax deducted at source on behalf of the suppliers using the e-commerce platform is properly accounted for and paid to the government, facilitating smooth flow of tax credits throughout the supply chain.
Who should File Form GSTR-8?
Form GSTR-8 is specially required to be filed by the e-commerce operators who are required to collect TCS and is registered under GST. It is applicable to all the transactions facilitated through the e-commerce platform, where the platform is required to collect GST from the suppliers making sales.
Eligibility and Rules for Filing Form GSTR-8
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Eligibility for Filing Form GSTR-8:
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Form GSTR-8 is specially required to be filed by the e-commerce operators who are required to collect TCS and is registered under GST. An e-commerce operator is the intermediary who facilitates online shopping, making accessible a wide range of products to the consumers at the tip of their finger. These e-commerce platforms create an online space whereby sellers can offer a wide range of their products after obtaining registration on these platforms. Examples of e-commerce platforms include Amazon, Flipkart, and likewise who host digital or electronic marketplaces.
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It is applicable to all the transactions facilitated through the e-commerce platform, where the platform is required to collect GST from the suppliers making sales.
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Rules for Filing Form GSTR-8:
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E-commerce operators must deduct the percentage of net value of taxable supplies made through the platform by other suppliers.
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The tax collected must be deposited with the government.
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The due date for filing GSTR-8 is the 10th of the month following the month in which the tax is collected at source.
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The e-commerce operator must provide a monthly statement with the details of supplies made through the platform, the tax collected at the source, and the payment made to the suppliers.
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Sections in Form GSTR-8
Form GSTR-8 is focussed to capture maximum information about the transactions processed by the e-commerce operators:
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GSTIN: The e-commerce operator’s GSTIN, that is, GST Identification Number should be provided.
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Legal Name: The legal name of the e-commerce as per GST registration should be provided.
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Details of Supplies: The e-commerce operator should provide the details of supplies made through the platform, including taxable value, and tax collected at source.
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Amendments: Any corrections to the return filed earlier should be made through this section.
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Tax Collected at Source (TCS): The tax collected at source in the form of GST should be reported by the e-commerce operator.
Interest or Late Fee Payable and Paid: Details of any interest or late fees due as a result of late filing or payment and payments made are reported under this section.
Steps for Filing Form GSTR-8
Following are the steps to file Form GSTR-8 over the GST portal:
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Navigate to Form GSTR-8:
Go to ‘Services’>’Returns’>’Returns Dashboard’ and select the financial year and the return filing period for GSTR-8.
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Fill the Details:
The return can be prepared online on the GST portal or offline using the utility tool and then it can be uploaded.
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Enter the Required Details:
Fill in the required details, including information about supplies made, TCS collected, any changes to previously filed return, and any interest or late fees due.
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Calculate TCS and Interest:
The tax and interest is auto-calculated on the GST portal.
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Payment of TCS and Interest:
Any tax and interest due must be paid before filing the return.
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Preview and Submit:
Before submitting the Form GSTR-8, review the same to ensure accuracy of the entered details. If there are any discrepancies, the same should be corrected.
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Login to the GST portal:
E-commerce operators must login to the GST portal at https://www.gst.gov.in/ using the credentials.
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File Form GSTR-8 with DSC/EVC:
To file the form and authenticate the same, use either Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
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Acknowledgement:
Upon successful filing, an acknowledgement will be generated.
Frequently asked questions
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Explain Form GSTR-8 in short.
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Form GSTR-8 is a monthly return filed by taxpayers who are required to collect Tax at Source (TCS) under GST. E-Commerce operators are required to collect TCS under GST and furnish Form GSTR-8.
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Who should file Form GSTR-8?
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E-commerce operators under GST are required to collect TCS. Therefore, Form GSTR-8 is to be filed by the e-commerce operators.
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What is the due date for filing Form GSTR-8?
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Form GSTR-8 must be submitted by the 10th of the month following the month in which the tax at source was deducted.
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What are the consequences for late filing Form GSTR-8?
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Yes. Late filing of Form GSTR-8 results in the penal consequences of INR 200 per day (INR 100 CGST + INR 100 SGST) until the return is filed. The maximum penalty is capped at INR 5,000.
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If there is any mistake in Form GSTR-8, how should it be dealt with? or How to revise Form GSTR-8?
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The originally filed Form GSTR-8 cannot be revised. Corrections to the filed Form GSTR-8 can be made in the following month’s return. The GST portal allows changes to the returns filed earlier through the amendment section in the form.
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What information is to be provided in Form GSTR-8?
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Form GSTR-8 requires details of all taxable supplies made via e-commerce platform, the amount TCS collected and other relevant details.
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What is the impact of Form GSTR-8 on the supplier?
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The TCS details furnished by e-commerce operators through Form GSTR-8 facilitates the suppliers to claim the amount of TCS in their electronic credit ledger.
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Are foreign e-commerce operators required to furnish Form GSTR-8?
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Yes. The foreign e-commerce operators registered under GST and who are required to collect TCS must file Form GST-8.
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How is the TCS collected using Form GSTR-8 reflected in the supplier’s account?
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The TCS collected and reported in Form GSTR-8 by e-commerce operators is reflected in Part C of Form GSTR-2A for suppliers which allows them to claim the TCS as a credit.
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What is the consequence of non-filing of Form GSTR-8 after collecting the TCS?
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Failure to furnish Form GSTR-8 after deducting the TDS may result in penal consequences and levy of interest on the TDS amount deducted. Moreover, suppliers may also encounter the challenge to claim the TDS credits.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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