Updated : October 7, 2024What is GSTR-8?: Return Filings, Eligibility, Due Date, & Documents Required
Overview : Goods and Services Tax (GST) is an indirect tax regime in India that has revolutionized the way taxes are collected and managed. The introduction of GST has made tax compliance easier for businesses, but it has also increased the responsibility of taxpayers. One such responsibility is the filing of GSTR-8. GSTR-8 is a return filed by e-commerce operators to report the tax collected at source (TCS) on transactions made through their platform. This blog discusses in detail, what is GSTR 8, its key purpose, eligibility, documents required, penalty or late fee and due date for filing this GST form.
GSTR-8 provides details of the supplies made, the tax collected, and the amount of TCS remitted to the government. Filing GSTR-8 is mandatory for e-commerce operators and failure to file it can result in penalties and interest charges. In this blog, we will discuss in detail GSTR-8: purpose, eligibility, due date, penalties/late fees for non-filing, and details and documents required for filing GSTR-8.
What is GSTR-8?: Key Purpose of GSTR-8 Filing
The key purpose of filing GSTR-8 is to provide the tax authorities with a comprehensive and accurate record of the tax collected at source (TCS), suppliers from whom TCS is collected, and supplies made through the e-commerce platform. By doing so, e-commerce operators can ensure compliance with GST regulations, avoid penalties for non-compliance, and help the tax authorities to detect any tax evasion or non-compliance. The following are the key purposes of filing GSTR-8:
- Reporting of TCS: E-commerce operators who are required to collect tax at source under the GST Act are required to report the details of TCS collected during a particular month in the GSTR-8 return. This helps the tax authorities to reconcile the TCS collected by the e-commerce operator and to ensure compliance with GST regulations.
- Reporting of Supplier Details: E-commerce operators are also required to report the details of the suppliers from whom TCS is collected in the GSTR-8 return. This helps the tax authorities to track the compliance of the suppliers and to ensure that they are filing their GST returns correctly.
- Reporting of Supplies made through E-commerce Platform: E-commerce operators are also required to report the details of the supplies made through their platform in the GSTR-8 return. This helps the tax authorities to track the flow of goods and services through the e-commerce platform and to ensure that the correct amount of GST is being paid on such supplies.
- Compliance with GST Regulations: By filing GSTR-8 returns on a monthly basis, e-commerce operators can ensure compliance with GST regulations and avoid penalties for non-compliance.
Who is liable for TCS collection under GST?
As per the provisions of the GST Act, e-commerce operators are liable to collect tax at source (TCS) from the suppliers who sell goods or services through their platform. E-commerce operators are defined under the GST Act as those who own, operate, or manage a digital or electronic platform for facilitating the supply of goods or services. This includes marketplace operators, such as Amazon, Flipkart, and Snapdeal.
In addition to tax collection at source from the suppliers, the e-commerce operators are also required to file GSTR-8 returns, reporting all the details of the collected tax, and the quantities of supplies made. It is important to note that e-commerce operators who are not required to collect TCS under GST are not required to file GSTR-8 returns. Both TCS collection and the filing of TCS returns are done on a monthly basis and are not applicable to exempt supplies or supplies on which the supplier has already collected GST.
Eligibility and Exemptions for filing GSTR-8:
To be eligible for filing GSTR-8 returns, e-commerce operators must meet certain requirements as specified under the Goods and Services Tax (GST) Act. Meeting these requirements is crucial to avoid any legal consequences, penalties, or fines imposed by the tax authorities. Therefore, e-commerce operators should carefully review these eligibility required and ensure that they meet all the conditions before filing GSTR-8 returns. Here is a complete list of all these requirements:
- Operation of E-commerce Platform: Only E-commerce operators who own, operate, or manage a digital or electronic platform for facilitating the supply of goods or services are eligible to collect TCS and file GSTR-8 returns.
- Registration under GST: E-commerce operators who are liable to collect tax at source and file GSTR-8 returns must be registered under the GST Act.
- Collection of TCS: Returns in GSTR 8 can only be filed after the E-commerce operator has collected the TCS payable from the suppliers.
- Timely Payment of TCS: E-commerce operators must have remitted the TCS collected from the suppliers to the government on a monthly basis before filing the corresponding GSTR-8 returns.
- Accurate Reporting: E-commerce operators must accurately report the details of TCS collected from suppliers, and supplies made through the e-commerce platform in the GSTR-8 before filing it to the concerned tax authority.
Exemption from GSTR-8 Filing
However, the two types of e-commerce operators who are exempted from filing GSTR-8 include those who have not made any taxable supplies through their e-commerce platform during the month for which the return is being filed, and those who are registered as non-resident taxable persons or as casual taxable persons.
Details and Documents Required for Filing GSTR-8:
Accurate maintenance and submission of the required documents are crucial for filing GSTR-8 returns as they provide essential details about the supplies made, the tax collector, and the amount of TCS remitted to the government. To avoid any penalties or fines imposed by the tax authorities, e-commerce operators must ensure that required GSTR 8 documents are available in their prescribed formats and with updated information. The GSTR 8 documents required for filing this GST form have been mentioned in the table below.
| List of Documents | Key Purpose |
|---|---|
| GSTR-2A | This is a statement that reflects the details of all the supplies made to the e-commerce operator by the suppliers. The details include supplier GSTIN, invoice details, and the amount of tax paid by the supplier. |
| TCS Certificate | Details such as the supplier’s name, GSTIN, the amount of TCS collected, and the date of collection for filing GSTR 8 can be taken from the TCS Certificate issued by the e-commerce operator to the supplier. |
| Invoice Issued by the E-Commerce Operator | The e-commerce operator must maintain a record of all the invoices issued to the customers on the purchase of goods or services. These invoices include details such as the customer’s name, address, GSTIN of the e-commerce operator, the amount of tax charged from the customer, and the date of sale, which are required while filing GSTR 8 Returns. |
| Invoice Issued by the Supplier | The e-commerce operator must also maintain a record of all the invoices issued by suppliers for the supply of goods or services. The invoices contain details such as the e-commerce operator’s name, address, GSTIN of the supplier, the amount of tax charged from the e-commerce operator, and the date of supply, which are all required while filing GSTR 8 Returns. |
| Credit / Debit Note | A credit/debit note is issued by the e-commerce operator to the supplier in case of a refund or a decrease / increase in the value of the supplies made by the supplier. They are essential documents to be referred to while filing GSTR 8 returns. |
| Bank Statement | A bank statement is required to prove that the TCS collected from the suppliers has been remitted to the government. |
Due Date for Filing GSTR-8:
Filing GSTR 8 due date is the 10th of the following month. This means that e-commerce operators which collect TCS are required to file their GSTR-8 returns by the 10th of the month following the month in which TCS was collected. For example, if TDS was collected in the month of January, the GSTR-8 return must be filed by the 10th of February.
It’s important to note that failure to file GSTR-8 by the due date can result in penalties and interest charges. Therefore, it’s essential to ensure that GSTR-8 returns are filed on time to avoid these penalties and ensure compliance with the GST regulations. Additionally, it’s important to maintain accurate records of TCS collections and payments to make the filing process smoother and more efficient.
Penalty for not filing GSTR-8
The penalty for not filing the GSTR-8 return on time can lead to significant consequences for e-commerce operators. The penalty for non-filing of GSTR 8 includes late fees and/or interest charges on the outstanding tax amount. Here are the details of the penalties for non-filing and GSTR-8 late fees:
- Late fee: If an e-commerce operator fails to file the GSTR-8 return by the due date, a GSTR 8 late fee of Rs.100 per day (Rs.50 for CGST and Rs.50 for SGST/UTGST) will be charged until the return is filed. However, the maximum late fee is capped at Rs. 5000. If there is no tax liability for the period, then the late fee is Rs. 20 per day (Rs.10 for CGST and Rs.10 for SGST/UTGST) with a cap at Rs,1000.
- Interest: If an e-commerce operator fails to file the GSTR-8 return by the due date, interest will be charged at a rate of 18% per annum on the outstanding tax liability. The interest will be calculated from the due date of filing the return until the date of payment of tax.
- Penalty for non-filing: If an e-commerce operator does not file or rectify the GSTR-8 return even after a notice is issued, it will qualify as an offense u/s 122 of the CGST Act, and a penalty of up to Rs.10,000 or an amount equal to the tax due / evaded, whichever is higher, will be levied.
Conclusion
In conclusion, GSTR-8 is a crucial return for e-commerce operators in India that helps them report the tax collected at source on transactions made through their platform. Filing GSTR-8 is mandatory for e-commerce operators and failure to do so can lead to several adverse consequences. So, it is essential to file GSTR 8 within the due date as prescribed under the GST Act. E-commerce operators must ensure that they maintain accurate records of their transactions and comply with the GST regulations to avoid any complications during the GSTR 8 filing process. Hopefully, this blog has provided you with crucial information on various aspects of filing GSTR-8.
