GST Return shall be filed by every registered taxable person. The GST act mandates every individual/business to file their respective GST return promptly. Furnishing GST Returns timely helps the authorities carry out taxpayer assessment. It is seen as a way to pay the resulting tax liability to the government.
In recent years, we have seen a boom in the expansion and penetration of various E-commerce platforms with great momentum. These platforms allow other traders to become a seller on these platforms. E-commerce companies are required to obtain GST registration mandatorily and also be registered for tax collection at source (TCS). In this blog, we will understand the importance of GSTR-8 monthly filing for e-commerce operators in detail.
GSTR 8
GSTR 8 is a monthly return submitted by GST-registered e-commerce operators needed to collect tax at source (TCS). It holds the details regarding the supply that has been affected by the e-commerce platform and the total amount of Tax collected through the source of the supplies.
The return is filed on a monthly basis by the 10th of every month. For instance, if the date of filing GSTR-8 is for the month of September then the due date for the same filing will be the 10th of October.
Who Is an E-Commerce operator
An e-commerce operator is any person who owns or manages a digital or electronic facility or platform for carrying out electronic commerce. All such e-commerce operators are mandatorily required to obtain GST registration as well as register for TCS. Further, they are mandatorily required to deduct 1% TCS while making payments to their suppliers, and the same gets deposited by these platforms as GST liability of the seller with the Government.
GSTR-8 Format
The format of the GSTR-8 form is spread across 9 tables:
- GSTIN or provisional ID
- The legal name of the registered Individual
- Details of supplies made through e-commerce operators
- Any correction to the data submitted of supplies in the return of previous months can be done in this section.
- If the amount of TCS is not paid on time by the e-commerce operator, then interest is levied which needs to be addressed in this section.
- Details regarding Total tax payable and paid
- Details regarding Interest payable and paid
- Refunds from electronic cash ledger can be claimed that need to be mentioned in this section.
- Details regarding Debit entries in cash ledger for TCS / interest payment
Benefits of Timely GST Filing
Accountability
GST has brought in accountability and regulation to various industries which were earlier not properly organized. Filing GST Return also keeps financial transactions accountable.
Online Procedure
GST return filing is an online process which is smooth and well-organized. It only requires a list of receipts, invoices, and bills to be kept handy and the remaining tasks will be taken up by our professionals
Higher threshold
The threshold for GST registration is annual aggregate turnover exceeding 40 lakhs for sale of goods and aggregate turnover exceeding 20 lakhs for sale of services which means that small businesses falling below this threshold limit are not liable to online GST return filing.
Avoids Fines/Penalties
When you file your GST return, it protects you from facing unusual provisions like interest, monetary penalties, recovery, suspension of registration and other strict consequences.
Credibility
In many areas, taxpayers’ credibility is evaluated based on his GST filing record. If you meet your GST filing compliances by timely and proper filing of GST returns, it will benefit you at the time of seeking loans from banks or other financial institutions.
Subsuming of Taxes
GST has lessened the number of filings as it subsumed various other indirect taxes hence making it less hassle for small entities to fear of maintaining compliance contrary to a pre-GST time where businesses had to file a number of returns accorded with different indirect taxes.
Lesser compliance
The government has reduced the complexity of tax filing for businesses to a great extent by combining various taxes into a single tax GST and increasing the threshold limit. This has significantly contributed to reducing the compliance burden on small businesses.
Ease of Doing Business
Implementation of GST has also Improved the ease of starting a new business in India without any difficulties as it is centralized as well as standardized. Thus, the business would no longer have to file multiple indirect tax returns as GST returns apply across India.
Cascading effect eliminated:
GST aims to provide a seamless tax system throughout the value chain by reducing the cascading effect of taxes or simply described as ‘Tax on tax’. This would consequently reduce the other cost while doing business.
Late Fees and Interest
If your GST return is not filed within the due date then as per the GST Law, the current prescribed late fee is Rs.100/ day for each CGST and SGST amounting to Rs.200 per day which can go maximum to Rs.5,000. Further, Non-Filing returns timely can also make you liable to pay an interest at 18% per annum on the total amount of tax to be paid. This interest rate is applicable from the due date of filing the return till the payment is made.
Conclusion
It is crucial for every business, irrespective of the business structure, to adhere to the statutory compliance and complete all the necessary filings before the due date
SuperCA has helped several businesses to streamline their GST return filing quickly and accurately without any hassle. We believe in minimizing paperwork for speedy administrative procedures, thus removing the need to make personal visits to the tax department and making the process more flexible. Whether it’s generating the monthly or quarterly GSTR, calculating the tax liabilities and input tax credits, or filing the returns, SuperCA adheres to the GST law and helps you stay GST-compliant.
