GST Return for E-Commerce
Electronic commerce has been the subject of intense growth in India. India is behind many of the other countries in terms of the market size for E-commerce, but it is set to grow fast and predicted to become one of the largest in the world over the next decade. In this article, we look at the impact of GST on ecommerce operators and major provisions relating to ecommerce operators in India.
Electronic Commerce Operator under GST
“Electronic commerce operator is every person who, owns, operates or manages digital or electronic facility or platform for electronic commerce.” On the other hand, sale of a company’s products through its website would not be called an e-commerce activity. Hence, the basic functions of an E-commerce operator are:
• To display the available products and services in the website.
• Arrange for dispatch through any of the vendors.
• Post the successful supply by the vendors, the e-commerce operator proceeds to settle the payment of the vendor on a periodical basis.
Ecommerce Operator GST Registration
All E-commerce operators need to obtain GST registration once the turnover crosses the threshold limit. GST registration for ecommerce operators was mandatory irrespective of turnover criteria, until the 23rd GST Council meeting. In the 23rd GST Council Meeting, the benefit of threshold limit was made available to e-commerce operators. The threshold limit for every businesses is 20 lakhs, and 10 lakhs for special category states, except Jammu and Kashmir which is fully exempt.
Tax Collection at Source (TCS)
E-commerce operator not being an agent are required to collect TCS – an amount at the rate of 1% from the net value of taxable supplies made through the ecommerce platform. The amount so deducted and collected is known as Tax collection at source. E-commerce operators must collect this along with the taxes applicable. This tax will have to be collected on payment to vendors which will be subject to reconciliation at a later stage. The TCS amount collected by the e-commerce operator must be deposited to the Government by the operator within a period of 10 days after the end of the month in which the amount was collected. The concerned operator must also file an electronic statement containing details of all amounts collected by him for the outward supplies made through his portal. There are a few exceptions to this rule, where TCS need not be collected:
• If the operator is acting as an agent.
• Consideration has been paid directly from the recipient to the supplier.
• Services provided are notified under Section 8(4) by which the operator is liable to pay service tax.
GST Return Filing
The E-commerce operator must furnish the following details:
• Supplies of goods/services effected through concerned operator during any period.
• Stock of goods being held by the actual supplier in the premises of the e-commerce operator through whom supplies are made, provided the supplier has registered such premises as his additional place of business.
GSTR 8 return must be filed by taxpayers required to collect tax at source. E-commerce operators are required to collect tax at source. Hence, any persons operating an e-commerce venture must register for TCS, collect tax at source and file GSTR 8 return before the 10th of every month.
Frequently Asked Questions?
GSTR-8 is a return to be filed by the e-commerce operators who are required to deduct TCS (Tax collected at source) under GST. GSTR-8 contains the details of supplies effected through e-commerce platform and amount of TCS collected on such supplies.
Every e-commerce operator registered under GST is required to file GSTR-8. E-commerce operator has been defined under GST Act as any person who owns or manages a digital or electronic facility or platform for electronic commerce such as Amazon etc. All such e-commerce operators are mandatory required to obtain GST registration as well as registered for TCS (Tax collection at source).
E-commerce operator is any person who owns or manages the digital or electronic facility or platform for electronic commerce such as Amazon, Flipkart, etc. The e-commerce operator provides a platform whereby the sellers can reach out to a large number of customers by getting registered online on their platform. Customers also get benefits as they get access to multiple sellers and competitive prices for the desired product.
GSTR-8 shows the details of supplies effected through the e-commerce platform and the amount of TCS collected on such supplies. Currently, the Government has put the TCS provisions on hold. It is going to be applicable from 1st Oct 2018 onwards. In case of TCS being applicable, the supplier can take the input credit of such TCS deducted by the e-commerce operator after filing of GSTR-8 by the e-commerce operator. The amount of such TCS will be reflected in Part C of Form GSTR-2A of the supplier.
For instance, consider that Shanta Enterprises supplies garments worth Rs 20,000 through Amazon. Now Amazon being the e-commerce operator will deduct the TCS @ 1% and deposit Rs 200 with the Government. The amount of Rs 200 will get reflected in GSTR-2A of Shanta Enterprises after filing of GSTR-8 by Amazon.
GSTR-8 filing for a month is due on 10th of the following month. For instance, the due date for GSTR-8 for October is on the 10th of November.
If the GST return is not filed on time, then a penalty of Rs 100 under CGST & Rs 100 under SGST shall be levied per day. The total will be Rs. 200/day. The maximum is Rs. 5,000. There is no late fee on IGST in case of delayed filing.
Along with late fee, interest at 18% per annum has to be paid. It has to be calculated by the taxpayer on the tax to be paid. The time period will be from the next day of filing to the date of payment.
GSTR-8 once filed, cannot be revised. Any mistake made in the return can be revised in the next month’s return. It means that if a mistake is made in October GSTR-8, rectification for the same can be made in November GSTR-8 or in later months when the error or omission is identified.
Yes. The return provides for the declaration of the details of all taxable Supplies effected through E-Commerce along with the GSTIN of the e-commerce portal in GSTR-1. However, this would be implemented once the relevant provisions of GST law are notified.