GST Return Filing for E-commerce
E-commerce sellers face unique challenges in GST compliance, primarily due to the volume of transactions, returns, and the Tax Collected at Source (TCS) mechanism. Filing accurate returns requires careful reconciliation of sales data from platforms like Amazon, Flipkart, and Meesho with your own records.
What is GSTR-8 & Why is it Crucial?
GSTR-8 is a return filed by e-commerce operators (like Amazon/Flipkart) who are required to deduct TCS (Tax Collected at Source) under GST. It contains details of supplies effected through the e-commerce platform and the amount of TCS collected.
Importance for Sellers: The TCS deducted by the operator is reflected in your Electronic Cash Ledger once you accept the details in your GST portal. This amount can be used to pay your output tax liability.
Reconciling Sales and TCS Data
One of the most critical steps for e-commerce sellers is reconciling their sales data with the GSTR-8 filed by the marketplace. Discrepancies can lead to:
- Loss of TCS credit.
- Mismatches in turnover reported in GSTR-1 vs GSTR-3B.
- Notices from the GST department.
We assist in cross-verifying your sales reports with the data on the GST portal to ensure 100% accuracy.
Penalties for Late or Incorrect Filing
Non-compliance can be costly. Common penalties include:
- Late Fee: Up to ₹50 per day (₹20 for NIL returns) for delayed filing of GSTR-1 and GSTR-3B.
- Interest: 18% per annum on the outstanding tax liability.
- ITC Reversal: Incorrect ITC claims can lead to reversal along with 24% interest and penalties.
- Registration Cancellation: Continuous non-filing can lead to Suo Moto cancellation of GST registration.
