Tax Collection at Source provisions under GST

Tax Collection at Source (TCS) has similarities with TDS, as well as has distinctive features also. TDS refers to tax which is deducted when recipient of goods or services makes some payments under a contract etc. while TCS refers to tax which is collected by the electronic commerce operator when a supplier supplies some goods or services through its portal and the payment for that supply is collected by the electronic commerce operator. We will discuss the exact nature of TCS with an example. There are many e-Commerce operators [hereinafter referred to as an Operator], like Amazon, Flipkart, Jabong, etc. operating in India. These operators displays / lists on their portal products as well as services which are actually supplied by some other person to the consumer. The goods or services belonging to other suppliers are displayed on the portals of the operators and consumers buy such goods/services

through these portals. On placing the order for a particular product/ services the actual supplier supplies the selected  product/services to the consumer. The price/consideration for the product/services is collected by the Operator from the consumer and passed on to the actual supplier after deducting his commission by the Operator.

The Government has placed the responsibility on the Operator to collect the ‘tax’ at a rate of 1% from the supplier. This shall be done by the Operator by paying the supplier the price of the product /services, less the tax, calculated at the rate of 1%. Rate of TCS is notified as 1% of net taxable supplies for intra-state supplies. (i.e 0.5% of CGST and 0.5% of SGST ). The said amount will be calculated on the net value of the goods/ services supplied through the portal of the operator.

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Section 52 of the CGST Act, 2017 provides for Tax Collection at source, by e-Commerce operator in respect of the taxable supplies made through it by other suppliers, where the consideration in respect of such supplies is collected by him.

The amount of tax so collected by the operator is required to be deposited by the 10th of the

following month, during which such collection is made. The operator is also required to furnish a monthly statement in Form GSTR-8 by the 10th of the following month. The Operator is also required to file an Annual statement in prescribed form by the 31st of December following the end of every financial year. The Operator can rectify errors in statements filed, if any, latest by the return to be filed for the month of September, following the end of every financial year.

The details furnished by the operator in GSTR-8 shall be made available electronically to each of the suppliers in Part C of FORM GSTR-2A on the Common Portal after the due date of filing of FORM GSTR-8.

The tax collected by the operator shall be credited to the cash ledger of the supplier who has supplied the goods/services through the Operator. The supplier can claim credit of tax collected and reflected in the return by the Operator in his [supplier’s] electronic cash ledger.

FAQS > FORM GSTR-8

WHAT IS FORM GSTR-8?

Form GSTR-8 is a Statement of TCS (Tax Collected at Source) to be filed by E Commerce Operators. Form GSTR-8 contains the details of taxable supplies and the amount of consideration collected by such operator pertaining to the supplies made by other suppliers through such e commerce operator and amount of TCS collected on such supplies.

FORM GSTR-8 COMPRISES OF WHICH TABLES?

 Form GSTR-8 comprises of following tables:

Table 3: Details of Supplies attracting TCS (Can be filled using the Offline Utility or online on the GST Portal)

Table 4: Amendment to details of supplies attracting TCS in respect of earlier statement (Can be filled using the Offline Utility or online on the GST Portal)

Table 5: Details of Interest on account of late payment of TCS amount (Auto calculated on GST Portal)

Table 6&7: Payment of Tax (Can be done only online on the GST Portal)

 

WHO NEEDS TO FILE FORM GSTR-8?

 Form GSTR-8 is to be filed by every E-commerce Operator who are registered under GST laws and required to collect TCS on outward supplies of goods and/ or services effected through the e-commerce Portal / platform (maintained by the e-commerce operator) made by taxable persons registered with it.

IS IT MANDATORY TO FILE FORM GSTR-8?

Filing of Form GSTR-8 for every tax period is not mandatory. E-commerce operator is mandatorily required to file GSTR-8 for a tax period only when they have collected any TDS amount during the said tax period or they have to amend any details declared in earlier Return on their own or on account of any details rejected by supplier which is auto-populated in Table 4 in that tax period.

BY WHEN DO I NEED TO FILE THE FORM GSTR-8 AND IS THERE ANY LATE FEE FOR LATE FILING?

The due date for filing Form GSTR-8 for a particular tax period is 10th day of the succeeding month or amended by Government by notification from time to time.

Currently there is no late fee for filing of form GSTR-8 beyond the due date. However, interest will be charged in case of delay in discharging of TCS liability beyond the due date.

FROM WHERE CAN I AS A TAXPAYER FILE FORM GSTR-8?

Form GSTR-8 can be accessed on the GST Portal, post login in the Returns Dashboard by the taxpayer.

The path is Services > Returns > Returns Dashboard.

IS THERE ANY OFFLINE TOOL FOR FILING FORM GSTR-8?

Yes. Form GSTR-8 return can be filed through offline mode.

CAN THE DATE OF FILING OF FORM GSTR-8 BE EXTENDED?

 Yes, date of filing of Form GSTR-8 can be extended by Government through notification.

WHAT ARE THE PRE-CONDITIONS FOR FILING FORM GSTR-8?

Pre-conditions for filing of Form GSTR-8 are:

E-commerce Operator should be a registered person and should have an active GSTIN during the tax period for which return is intended to be filed.

E-commerce Operator should have valid User ID and password.

E-commerce Operator should also have valid & non-expired/non-revoked digital signature (DSC) where DSC is applicable or a mobile number registered on portal to file return through EVC verification.

E-commerce Operator has collected TCS amount.

HOW CAN I DISCHARGE MY TCS LIABILITY?

 TCS liability can be discharged through Electronic Cash Ledger only.

HOW CAN I OFFSET MY LIABILITIES?

You can offset the liabilities by clicking the 6, 7. Payment of Tax tile.

If available cash balance in Electronic Cash Ledger is less than the amount required to offset the liabilities, then additional amount of cash payment will be required. You may create challan for that additional amount of cash required directly by clicking on the CREATE CHALLAN button at the bottom of page.

If available cash balance in Electronic Cash Ledger is more than/equal to the amount required to offset the liabilities, no additional cash payment is required for offsetting liability.

DO I NEED TO FILE FORM GSTR-8 EVEN IF NO TCS LIABILITY IS THERE IN THE TAX PERIOD?

 If E-commerce operator do not have any TCS liability in any particular tax period and also there is no transaction that has been auto-populated in table 4 of GSTR-8 of that particular tax period due to rejection of TCS details by the supplier in TDS/TCS credit received table, filing of Form GSTR-8 will not be mandatory for the said tax period. Otherwise, it is mandatory to file Form GSTR-8 for a particular tax period in which TCS has been collected or details are auto populated in table 4.

 

WHAT ARE THE MODES OF SIGNING FORM GSTR-8?

You can file Form GSTR-8 using DSC or EVC.

(a) Digital Signature Certificate (DSC)

Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. A digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally. In India, DSC are issued by authorized Certifying Authorities.

The GST Portal accepts only PAN based Class II and III DSC.

 To obtain a DSC, please contact us rocguru.com@gmail.com

 (b) Electronic Verification Code (EVC)

The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. The OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.

CAN I PREVIEW FORM GSTR-8 BEFORE FILING?

Yes, you can view/download the preview of Form GSTR-8 by clicking on ‘PREVIEW DRAFT GSTR 8’ before filing on the GST Portal.

WHAT HAPPENS AFTER FORM GSTR-8 IS FILED?

 After Form GSTR-8 is filed:

ARN is generated on successful filing of the Form GSTR-8 Return.

An SMS and an email are sent to the applicant on his registered mobile and email id.

The details provided in Table 3 and Table 4 are sent to counter-party for action (Accept/Reject).The return will be available in the Dashboard of tax officer

I AM NOT ABLE TO AMEND TCS DETAILS IN TABLE 4 OF FORM GSTR-8. WHY?

 Amendment of TCS details in Table 4 of Form GSTR-8 cannot be made when the TCS details have already been accepted by counter party, or the TCS details has already been amended once.

WHEN CAN I AMEND TCS DETAILS IN TABLE 4 OF FORM GSTR-8?

 Amendment of TCS details in Table 4 is allowed only once in case original TCS details has not been accepted by the supplier in TDS/TCS credit table or the same has been rejected by the supplier. After amendment, it will go back to the supplier.

Once the TCS details have been accepted by the supplier, then no amendment of the same is allowed at E-commerce Operator’s end.

Sources: GST Portal.

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