If your business operates in the Indian e-commerce landscape, then it is very probable that your operations fall under the GST tax umbrella. With a lot at stake for e-commerce businesses, it is very important to understand the GST filing rules and know exactly which returns and forms are needed for GST return filing.
What Is E-Commerce GST Return Filing All About?
There is no such thing or any unique form named an “e-commerce GST return”. Rather, a set of monthly returns to be filed by the traders and the marketplaces, i.e., suppliers through online channels, collectively comprise the e-commerce GST return filing. If a buyer makes a purchase through an e-commerce market, the seller of goods will declare an outward supply in GSTR-1 and settle the net liability via GSTR-3B.
However, the platform operator collects 1% TCS and discloses it separately through GSTR-8. Because of this, since all stakeholders’ tasks vary greatly, if you are unsure of the returns you’re supposed to file, your first step must be to figure out your role accurately.
Which GST Return Should Be Filed for E-Commerce Business?
The accurate form to be returned is determined by whether you are an e-commerce seller or an e-commerce operator under GST.
1. GSTR-1 for E-Commerce Sellers
Every outward supply through an online marketplace that is made by a supplier who is a taxable person must be reported in form GSTR-1. In this case also, the invoice-level details must be provided in the form with the taxable value (on which the platform will deduct TCS).
2. GSTR-3B for E-Commerce Sellers
The return, which is filed either monthly or quarterly, is a summary of sales, purchases and tax payments. After filing GSTR-3B, the net output tax liability will be paid.
3. GSTR-8 for E-Commerce Operators
Marketplaces and platforms that are registered as e-commerce operators must file the special return, GSTR-8, to declare TCS charged from suppliers on outward sales. This return should be filed before the 10th day of the month every month.
4. GSTR-9 Annual Return
Like other taxpayers, registered sellers have to lodge an additional return for GST in the form of GSTR-9, to account for all the monthly returns.
Suppliers that conduct business only through e-commerce platforms cannot avail composition scheme benefits. That’s why regular GST filings are still compulsory for them.
Do E-Commerce Businesses Need to File GST Returns or Not?
The simple answer is yes. The e-commerce businesses that have registered with GST need to file GST returns. Most of the time, the sellers who deliver goods through the marketplace are not entitled to the typical turnover exemption that the regular businesses have.
Because of this, if you sell goods through an e-commerce platform under GST, you are required to be registered. After registration, the filing of returns at a seller-level becomes mandatory. Even if the income from the service of the marketplace is not much, the marketplace must still file the return under GSTR-8.
How to File GST Return for E-Commerce Sellers
Below are the key steps of the e-commerce seller GST return filing procedure:
- Login to the GST portal
Browse to the GST portal website and then log in using your GSTIN and password. Before proceeding, pick the correct financial year and return period.
- Prepare outward supply details in GSTR-1
Submit information about each outward supply and invoice-wise details for sales made on the platform. Match up the list of sales that you have with the TCS information displayed by the platform so that you do not miss any sales.
- Submit GSTR-3B with tax payment
After the return GSTR-1 is filed, the summary of GSTR-3B is auto-generated. Go through and confirm whether your tax liability and input tax credit claims have been accurately made before the amount gets settled via the cash or credit ledger.
- Reconciliation of TCS through GSTR-2B credits
The platform will automatically deduct TCS to your GSTR-2B. It is, because of this, essential to check that every month your electronic cash ledger is credited accurately.
- Submit the return and get the acknowledgement
The electronic return has to bear a correct digital signature or electronic verification code and after submission, an acknowledgement can be downloaded. If you miss the due dates on a regular basis, you will end up paying a hefty penalty, which can be up to ₹50 per day. Because of this, maintaining the calendar of filing returns is essential.
What Is the E-Filing of GST Return?
File your GST return and pay your taxes through the online mode with the GST portal instead of going to a service window manually. All GST returns (GSTR-1, GSTR-3B, and GSTR-8 included) have to be submitted using an online medium. You don’t have to manually go to a government department anymore if all the necessary forms and documents are uploaded and submitted online. For a broader process overview, see this guide to GST filing in India.
GSTR-8 for E-Commerce Operators
Operators like Amazon, Flipkart, or other e-commerce marketplaces must collect 1% tax at source from the net value of supplies made through them before the tax is paid. Half a per cent of the tax is charged as a GST (0.5%) and the rest is also a State levied GST (0.5%).
A registered e-commerce operator has to file GSTR-8 every month even when no turnover is reported. From the GST portal, a business can file GSTR-8 by furnishing TCS details and the same portal allows businesses to download GSTR-8 for reconciliation and record-keeping purposes respectively.
How Much Turnover Is Required for the GST Monthly Return?
Businesses with an aggregate turnover up to ₹5 crores in the preceding financial year have the option of making monthly payments but filing quarterly their GSTR-1 and GSTR-3B filings. Yet, tax should be paid month-wise in the relevant months during a quarter.
Businesses that have a turnover higher than ₹5 crores are expected to file GSTR-1 and GSTR-3B on a monthly basis as per the rules. Timely filing of GST returns can help you escape from being issued with a show-cause notice and also allows easy claims for TCS credits. If you want to strengthen your overall GST compliance, keep returns, reconciliations, and marketplace reports aligned throughout the year.
Final Checklist for E-Commerce GST Return Filing
Final Checklist for E-Commerce GST Return Filing
- Confirm whether you are filing as a seller or an operator.
- Reconcile sales and TCS credits from GSTR-2B every month.
- File GSTR-1 before the due date with all invoice details.
- Pay the net tax liability before filing GSTR-3B.
- Keep debit notes, credit notes, and marketplace reports accessible.
In the case that e-commerce GST compliance seems too complicated and you want relief from the pressure, then Foxtax can assist you with GSTR-1, GSTR-3B, and GSTR-8 filings, tracking TCS reconciliation as well as managing deadlines for the taxpayer. You can also explore professional GST registration and ongoing GST returns filing support.
FAQ
1. Can I file a GST return without CA?
GST return filing is allowed as a self-service through the GST portal using the regular filing mode. Yet, assistance from tax professionals minimizes discrepancies in TCS reconciliation, debit notes, and input tax credit claims.
2. How to download GSTR-8 from the GST portal?
Login to the GST portal, select Services, then Returns, and then pick GSTR-8. Enter the financial year and period, look at the return document and from the ‘View and Download’ menu, download the file as a PDF.
3. Is GST registration compulsory for selling on marketplaces?
E-commerce sellers usually find exemptions like the usual turnover threshold unavailable to them. That’s why they are required to get registered under GST before offering products/supplies online.