The Indian digital marketplace is a juggernaut, with Amazon and Flipkart alone receiving more than 5 million orders each day. If current predictions hold true, this booming sector would go on to become a $350 billion industry by 2030. In this digital spurt, GSTR-8 is the unsung hero of tax compliance.
Form GSTR-8 not only ensures that all the money spent online is accounted for, but it also makes certain that every tax collected gets reported and every supplier gets their rightful credit. So, let’s explore what GSTR-8 means and what the GSTR-8 filing process looks like. And while at it, also try and understand why this form is so crucial for the digital economy.
GSTR-8 return is a monthly GST return meant to be filed by e-commerce operators who collect Tax Collected at Source (TCS) on transactions made through their websites. These operators are required to deduct 1% TCS on the net value of taxable supplies made through their platform and deposit it with the government.
Form GSTR-8 is where they report all such transactions and the TCS collected. It basically serves as a bridge between the e-commerce operator, the Indian government, and the suppliers.
Each and every e-commerce operator registered under GST and mandated to collect TCS on outward supplies of goods and/or services must file the GSTR-8 return. This is a legal requirement and not something optional for operators who qualify.
An e-commerce operator is anyone with ownership or control of a digital or electronic space to conduct electronic commerce. This includes…
Some of the key functions performed by an e-commerce operator are…
The GSTR-8 due date falls on the 10th day of the month following the tax period. For instance, for transactions done in June, the GSTR-8 return should be filed on or before July 10. The Indian government has the discretion to extend this deadline in special cases; however, this is generally the limitation that the operators must operate by.
Timely filing of GSTR-8 is essential to keep penalties and interest at bay. If the GSTR-8 due date is passed, one would have to face serious financial consequences.
Late filing is subject to a GSTR-8 late fee of INR 100 per day under CGST and INR 100 per day under SGST, totalling INR 200 per day. This GSTR-8 late fee, though, is limited to INR 5,000 per return.
In addition to this, an 18% interest is payable on the outstanding amount if the TCS amount is not deposited on time.
For instance, if an e-commerce operator files GSTR-8 for June on July 20, i.e., 10 days late, he would have to pay a GSTR-8 late fee of INR 2,000 (INR 200 x 10 days).
The GSTR-8 format captures all relevant details of supplies and TCS collected. Get an in-depth look at the same in the table below.
Disclaimer: The GSTR-8 format given here outlines the official reporting structure for GSTR-8 as per current GST provisions.
| Section | Table | Description | Details Required |
|---|---|---|---|
| 1 | GSTIN | Goods and Services Tax Identification Number | 15-digit GSTIN (auto-populated) |
| 2 | Legal Name & Trade Name | Name of the taxpayer | Legal name and trade name (if any, auto-populated) |
| 3 | Details of Supplies | Supplies made through the e-commerce operator | GSTIN of supplier, gross value of supplies, value of supplies returned, net amount liable for TCS, TCS collected under IGST/CGST/SGST |
| 3A | Supplies to Registered Persons | B2B supplies | GSTIN of supplier, gross value, returns, net amount, TCS collected |
| 3B | Supplies to Unregistered Persons | B2C supplies | GSTIN of supplier (if applicable), gross value, returns, net amount, TCS collected |
| 4 | Amendments to Earlier Statements | Corrections to previous returns | Original and revised details, month, GSTIN of supplier, gross value, returns, net amount, TCS collected |
| 4A | Supplies to Registered Persons (Amendments) | B2B amendments | As above, for amendments only |
| 4B | Supplies to Unregistered Persons (Amendments) | B2C amendments | As above, for amendments only |
| 5 | Details of Interest | Interest on late payment of TCS | Amount in default, interest payable under IGST/CGST/SGST |
| 6 | Tax Payable and Paid | TCS liability | Tax payable and amount paid under IGST/CGST/SGST |
| 7 | Interest Payable and Paid | Interest liability | Interest payable and amount paid under IGST/CGST/SGST |
| 8 | Refund Claimed from Cash Ledger | Refund details | Refund claimed under tax, interest, penalty, others; debit entry numbers |
| 9 | Debit Entries in Cash Ledger | Payment details | Tax and interest paid in cash, populated after payment |
GSTR-8 return is an essential part of the GST ecosystem and is very important to the constantly expanding e-commerce industry. Here’s why…
Ensures Tax Transparency
GSTR-8 keeps tab on and acts as a record of each and every taxable transaction made via e-commerce. This helps the government better monitor digital sales and ensure that the correct amount of tax is collected and deposited.
Prevents Tax Evasion
By mandating e-commerce operators to collect and report TCS, GSTR-8 aims to reduce the risk of tax evasion. It ensures that suppliers cannot underreport their sales or avoid paying GST.
Supports Supplier Credit
The TCS collected by the e-commerce operators is credited against the GST returns of the supplier. This enables suppliers to claim credit for the TCS deducted, so they can avoid multiple taxation on a single transaction.
Promotes Compliance
GSTR-8 return motivates e-commerce operators and suppliers to comply with GST regulations. It creates a system of checks and balances, making it harder for businesses to bypass tax obligations.
Supports the Growth of Digital Commerce
This e-commerce GST return helps build trust in the digital market by keeping the taxation environment compliant, transparent, and healthy at all times. This subsequently contributes to the expansion of e-commerce in India, which is profitable for both businesses and consumers alike.
The GSTR-8 filing process has a series of steps, each requiring careful attention to detail in order to be successfully performed. Here’s how you can file GSTR-8 on the GST portal…
Step 1: Log in to the GST portal (www.gst.gov.in). You would need your GSTIN and password for it.
Step 2: Click on Services in the top menu. Then, select Returns from the dropdown, and click on Returns Dashboard to get access to the filing interface.
Step 3: Select the Financial Year and tax Period for which you want to file GSTR-8. Click the Search button to proceed.
Step 4: Locate the GSTR-8 tile on the Returns Dashboard and click on Prepare Online to start preparing the return directly on the portal. You can also use the offline utility to prepare and upload the return (proceed to Step 11 to know how).
Step 5: Now, enter the following details in the tiles and don’t forget to click Save…
Tile 3: Details of supplies attracting TCS
Tile 4: Amendment to details of supplies attracting TCS (if there are any amendments or corrections to be made)
Tile 5: Details of interest (if there is any late payment of TCS)
Step 6: Verify all entered data for accuracy and click on Preview Draft GSTR-8 to review the return before submission.
Step 7: Click on Proceed to File and wait for the status to update to Ready to File.
Step 8: If there is an outstanding TCS or interest liability, go to the payment tile and make the required payment via any approved payment method. After payment, view debit entries in the Electronic Cash Ledger to confirm payment.
Step 9: Click on File GSTR-8 and authenticate the return with help from Digital Signature Certificate or Electronic Verification Code.
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Step 10: Now, download the acknowledgment receipt.
Step 11: For the offline GSTR-8 filing process, if opted for, you need to first download GSTR-8 offline utility from the Downloads section on the GST portal. Once done, fill in the required details in the utility. Finally, generate and save the JSON file, and upload it to the GST portal during the Prepare Online step.
If errors are discovered in a previously filed GSTR-8, the e-commerce operator can file a revised return. This is done by making corrections in Table 4 of the GSTR-8 form, where amendments to earlier statements can be entered.
However, once the supplier has accepted the TCS details, no further amendments are allowed from the operator’s side. Only one amendment is allowed per return if the supplier has not accepted or has rejected the details.
Filing GSTR-8 can be a little complex, and mistakes can lead to penalties, interest, and compliance issues. Here are some common mistakes to avoid…
Suggested Read: What is GSTR – 7 and How to File It?
Conclusion
GSTR-8, as an e-commerce GST return, acts as a digital ledger that keeps your platform compliant, your sellers credited, and your operations transparent. What more could you ask for? So, don’t forget to file it and let your marketplace become as tax-smart as it possibly can be.
Disclaimer: People often confuse GSTR-7 and GSTR-8, but the two returns serve completely different purposes, so don’t fall for it!
GSTR-8 is a monthly return filed by e-commerce operators to report supplies made through their platform and the Tax Collected at Source (TCS) on those supplies.
E-commerce operators must file GSTR-8 if they are registered under GST and collect tax collected at Source (TCS). There is no specific turnover limit for filing GSTR-8.
GSTR-8 is mandatory for e-commerce operators only if they have collected Tax Collected at Source (TCS) during the tax period or need to amend previously filed details.
GSTR-1 is filed by regular taxpayers to report outward supplies, while GSTR-8 is filed by e-commerce operators to report supplies made through their platform and TCS collected.
To cancel GSTR-8 (i.e., GST registration for e-commerce operators), log in to the GST portal, go to Services > Registration > Application for Cancellation of Registration, and follow the steps by selecting a valid reason like discontinuance of business or ceased liability.
GSTR-8 must be filed monthly, by the 10th of the following month.
Yes, GSTR-8 can be filed without a Chartered Accountant using the GST portal, provided you understand the filing process.
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