Due to the approaching deadline, the Goods and Service Tax Network (GSTN) has urged e-com operators to file TCS returns in form GSTR-8 by the 10th of June 2022. TCS is similar to TDS under GST and it is important for every e-commerce operator. Here this article discusses all that you need to know as E-Commerce operators to file TCS Return.
GST TCS Applicability on E-Commerce Operators
An entity who owns, maintains, or manages a digital or electronic facility or platform for electronic commerce is referred to as a “electronic commerce operator” under the GST. E-commerce enterprises in India must thus adhere to the GST TCS rules.
If an e-commerce company collects tax on behalf of a provider of goods or services who makes supply via the operator’s online platform, the tax is known as Tax Collected at Source (TCS) under GST. TCS will be levied as a percentage of net taxable supply. CGST Act Section 52 deals with TCS provisions under GST.
Under GST, who is responsible for collecting TCS?
TCS must be collected from certain operators that own, maintain, and administer e-commerce platforms. TCS is only applicable if the operators receive payment from its customers on account of distributors and suppliers. Alternatively, when e-commerce operators pay vendors, they must subtract some amount as TCS and reimburse the total amount. However, some exceptions for e-commerce operators is also there which is for following businesses:
- Hotels and Clubs that don’t have GST Registration.
- Passengers are transported via radio taxi, motor cab, or bike.
- Plumbery, carpentry, and other household maintenance services who also don’t are registered under GST
Latest News: CBIC reminds e-com operators to file TCS return
On the CBIC’s official twitter account, the GSTN announced that GSTR-8 must be submitted today ie. the 10th of June. The official twitter account handle of CBIC mentions that “Attention E-Commerce Operators who are required to collect Tax at Source under GST! File your GSTR-8 Return for the month of May 2022 by June 10, 2022. @FinMinIndia”
The official tweet:
What is GSTR-8?
In order to deduct TCS (Tax collected at source) under GST, e-commerce businesses must file Form GSTR-8. E-commerce platform supplies are detailed in GSTR-8, which also includes the amount of TCS that was collected on such supply.
If an e-commerce operator fails to do GST Return Filing for TCS Return GSTR-8 by the due date, a hefty penalty of Rs. 25000 can be imposed. In addition to the penalty for late GSTR-8 filing, an interest penalty or fee may be imposed for late payment of TCS deducted but not paid on time.
If you need to any further assistance regarding GST Return Filing or GST Registration, feel free to talk to our business advisors at 8881-069-069.
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