GSTR 8

What is GSTR 8?

GSTR 8 is a monthly return that e-commerce operators who collect tax at source (TCS) under the GST regime have to file. GSTR 8 return includes details of supplies via the e-commerce platform and the amount of TCS collected on these supplies. 

E-commerce operators need to collect TCS at a specified rate set at 1% of the net taxable value of such supplies. The provision for TCS under GST is detailed under Section 52 of the CGST Act. The rate of TCS under GST is set at 1% of the net taxable supplies. The Net Value Of Taxable Supplies is crucial for calculating TCS. 

The formula is:
Net Taxable Supplies = Total Value of Taxable Supplies - Value of Supplies Returned

Here, the total value of taxable supplies includes all goods and/or services (excluding notified services under GST law) made by registered persons through the e-commerce platform. The supplies returned are those transactions that have been returned to the suppliers via the e-commerce operator.
 

Why Is GSTR-8 Important?

GSTR 8 is important for the following reasons:

• TCS Reporting: GSTR 8 allows e-commerce operators to report the details of outward supplies made through their platform and the amount of TCS collected on such supplies for regulatory purposes. 
• Input Tax Credit (ITC) Utilisation: The details furnished in GSTR 8 by e-commerce operators are used by the recipients of the supplies to claim the input tax credit on the TCS collected.
• Compliance Requirements: Filing GSTR-8 is a statutory requirement for e-commerce operators registered under the GST regime. 
   

Who Is Liable To File GSTR 8?

E-commerce operators which include online platforms that undertake the sale of goods or services between sellers and buyers, are required to file GSTR 8. It applies regardless of whether the operator directly sells products or only facilitates transactions on its platform.

Due Date For Filing GSTR 8

GSTR 8 is a monthly return that has to be filed electronically on the GST portal. The due date for GSTR 8 filing is the 10th of the following month.

Let’s take an example to understand the calculator of TCS under GST better. 

If an e-commerce operator undertakes the sale of goods worth Rs.40,00,000 in a month and goods worth Rs.5,00,000 are returned in the same month, the net taxable supplies would be Rs.35,00,000. Consequently, TCS to be collected and deposited by the e-commerce operator would be 1% of Rs.35,00,000, which amounts to Rs.35,000.

The collected TCS amount must be deposited with the government by the e-commerce operator. Following the deposit and filing of GSTR 8, the amount of TCS gets reflected in Part C of Form GSTR-2A of the supplier. This helps suppliers claim the input credit of TCS deducted by the e-commerce operator.

Details About GSTR 8 Format

GSTR 8 has different sections which will cover to help you with the GSTR 8 return filing process:

GSTIN: The GST Identification Number of the e-commerce operator. Provisional IDs can also be used if a GSTIN has not been obtained.
Legal Name of the Registered Person: This will be auto-filled when logging into the GST portal.
Details of Supplies Made Through E-commerce Operator: This includes the gross value of supplies made to both registered and unregistered persons, and the value of supplies returned. The net amount after returns is the amount liable for TCS.
Amendments to Details of Supplies: It allows for corrections to previously submitted data.
Details of Interest: If TCS is not paid on time, interest is levied.
Tax Payable and Paid: Details the total amount of tax payable under each head (SGST, CGST, IGST) and the amount paid.
Interest Payable and Paid: Includes the interest levied for late payment of GST.
Refund Claimed from Electronic Cash Ledger: It includes details of refunds claimed, applicable only after all TCS liabilities have been discharged.
Debit Entries in Cash Ledger for TCS/Interest Payment: Here the amount of tax collected at source is reflected once the GSTR 8 is filed.
 

Requirements For GSTR 8 Filing

The requirements for GSTR 8 filing are as below. 

●    15-digit PAN-based GSTIN: The 15-digit PAN-based GSTIN is needed for filing GSTR-8.
●    Details of Supplies and TCS Transactions: Documents related to the details of supplies effected through the e-commerce platform and the amount of TCS collected.
●    Records of Taxes Collected: Detailed records of all taxes collected at the point of sale for transactions conducted via the online platform.
●    Digital Signature Certificate (DSC) or Electronic Verification Code (EVC): The digital signature certificate or the electronic verification code is needed for the authentication of the filing process.
 

How to File GSTR 8 Online?

Let’s have a look at the GSTR 8 filing process. 

1. Log in to the GST Portal: Access the GST portal using your credentials.
2. Navigate to the Returns Dashboard: Click on 'Services' in the main menu. From there, select 'Returns' from the dropdown and click on 'Returns Dashboard'.
3. Select the Financial Year and Month: Choose the relevant financial year and the month for which the return is to be filed. Then you are to click on 'Search'.
4. Prepare Online: Under the GSTR-8 tile, you need to click on 'PREPARE ONLINE'.
5. Enter Details of Supplies: You need to enter the below details. 

• GSTIN of Supplier: Enter the GSTIN of all suppliers whose sales you have facilitated.
• Gross Value of Supplies: Enter the total value of supplies made through the e-commerce platform.
• Value of Supplies Returned: Enter the total value of goods/services returned.
• Net Amount: The system will automatically calculate the net amount liable for TCS.

6. Amendments (if any): If there are any corrections to previously submitted data, enter the details under the 'Amendments' section.
7. Details of Interest: If TCS is not paid on time, calculate and enter the interest amount due.
8. Tax Payable and Paid: Enter the total amount of tax payable under each head (SGST, CGST, IGST) in the respective fields. Similarly, enter the amount of tax paid.
9. Interest Payable and Paid: Enter the interest amount payable and the amount paid.
10. Refund Claimed from Electronic Cash Ledger: If a refund is applicable, enter details of refunds claimed from the electronic cash ledger after discharging all TCS liabilities.
11. Debit Entries in Cash Ledger for TCS/Interest Payment: Check the amount of tax collected at source and interest payments once GSTR 8 is filed.
12. Preview and File: Before you submit the GSTR 8 return, click on 'Preview' to review the details entered to verify. Once done, click on 'Submit'. You will need to use a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) to authenticate and file the return.
 

Late-Filing Fees Or Penalty Associated With GSTR 8

You will be held accountable for paying the late fees in case you fail to file the GSTR 8 return on time. 

• SGST and CGST: A late fee of Rs. 50 per day (Rs. 25 under SGST and Rs. 25 under CGST) is applicable for each day of delay.
• IGST: In the case of IGST, a late fee of Rs. 100 per day is applicable.

Note that the maximum late fee is capped at Rs. 5,000 per return. This penalty accrues daily until the return is filed.

In addition to late fees, you will also need to pay an interest of 18% annually on the amount of TCS that remains unpaid. The calculation is done on the outstanding tax amount from the due date until the actual date of payment. 
 

Conclusion

GSTR 8 annual return is important for e-commerce operators that deduct TCS  under the GST regime. The due date to file the GSTR 8 return is the 10th of every month. It is important to file GSTR 8 on time to avoid late fees and legal complications.