GSTR-8: the monthly TCS return for e-commerce operators

Who files GSTR-8?

An electronic commerce operator that owns or manages a digital platform for supply of goods or services by other sellers must collect tax at source on the net value of taxable supplies made through it. Marketplaces, aggregators and online service platforms fall in this category when third-party sellers supply through them.

Every such operator must register under GST regardless of turnover, under section 24, and take a separate TCS registration in each state where it has sellers. An operator selling only its own goods does not collect TCS on those sales.

How is TCS calculated?

TCS is computed on net taxable value: taxable supplies made through the platform during the month, minus returns in that month, excluding supplies on which the operator itself pays tax under section 9(5). From 10 July 2024 the rate was cut from 1% to 0.5%, split as 0.25% CGST and 0.25% SGST for intra-state supplies or 0.5% IGST for inter-state supplies.

The collected tax is deposited by the 10th of the following month. Sellers see the TCS in their portal, accept it, and it reaches their electronic cash ledger for paying GST.

Due dates, late fee and interest

No specific relief notification covers GSTR-8, so the general late fee under section 47 applies: ₹100 a day under CGST and ₹100 under SGST, capped at ₹5,000 each, totalling ₹200 a day up to ₹10,000. Interest at 18% a year applies to TCS deposited late. Amendments to earlier supplies can be made in a later GSTR-8 within the time allowed.

What data does GSTR-8 need?

The return is seller-wise, so the operator's order management and accounting systems must capture GST details for every seller, every order and every return. Keep these fields ready for each month.

• Seller GSTIN and gross value of supplies made through the platform
• Value of goods returned during the month
• Net taxable value and TCS under CGST, SGST or IGST
• Supplies to unregistered persons, reported in aggregate by place of supply
• Amendments to earlier months and challan details for deposits

Common errors and consequences

Typical problems include a wrong seller GSTIN, using the old 1% rate, failing to net returns, and mismatch between the operator's GSTR-8 and the seller's GSTR-1. Sellers compare the two closely, and any gap leads to support tickets and notices.

Operators that fail to collect or deposit TCS are liable for the amount with interest and penalty. Officers can also issue notices under section 52 seeking supply details. Refogo's partner professionals can help platforms with GSTR-8 filing for a fixed fee.

Operators should also reconcile GSTR-8 each month with the payouts made to sellers and with the TCS shown in sellers' ledgers. Large differences at year end are difficult to explain in GSTR-9B and tend to attract scrutiny.

Step by step

1. 1Register for TCS in each state

   Take a TCS registration in every state where sellers on your platform are located.

2. 2Compute net taxable value

   Total seller-wise supplies for the month, less returns and section 9(5) supplies.

3. 3Collect and deposit 0.5% TCS

   Deposit the TCS through PMT-06 by the 10th of the next month.

4. 4Prepare and file GSTR-8

   Upload seller-wise data and file with DSC or EVC.

5. 5File GSTR-9B annually

   File the annual statement by 31 December after the year.