As per S. 52(1) of Central Goods and Services Act, 2017 (CGST Act), every Electronic Commerce Operator (ECO) is required to collect tax at source on the net value of taxable supplies made through the e-commerce platform by other suppliers. Further, as per S. 52(4) of CGST Act read with Rule 67 of Central Goods and Services Tax Rules, 2017 (CGST Rules), every ECO is required to submit return in form GSTR 8, reporting the tax collected during the month and remit the same to Government within 10 days after end of the month in which such collection is made.
Given the above requirement of filing returns in Form GSTR 8, e-commerce companies have been facing the following technical error at the time of computing liability of Tax Collected at Source (TCS) on the GST portal.
“Return filing process is not completed yet for the earlier period. If error persists, quote error number RET00012 when you contact customer care for quick resolution.”
This is causing undue hardship to e-commerce companies as they have duly deposited the TCS amount in the electronic cash ledger within prescribed timeline, however, they are unable to file the returns. On account of any delayed filing, it is apprehended that interest as well as late payment fee could be levied and the jurisdictional Authorities could invoke penal provisions.
In addition, for some of the online sellers of the e-commerce companies, the details of tax collected for the month of November 2020 is being reflected under the tab “TCS Credit Received Statement” for the month of December 2020 on the GST Portal. Therefore, the TCS details are being shown in the wrong month for the sellers. This would impact the sellers as the TCS credit of November 2020 is getting reflected twice.
Given this, NASSCOM has made a submission to GST Policy Wing requesting them to rectify the above errors at the earliest to enable e-commerce companies to file GSTR 8 along with correct reflection of the credit in the returns of the online sellers. Further, We have also requested the government to clarify that interest as well as late fee will not be demanded in the instant case by taking cognizance of the fact that companies have already deposited TCS liability for the said month in its electronic cash ledger in time and is not able to offset the liability, for reasons beyond its control, as the error is incorrectly appearing at the time of setting off the TCS payable amount.
We hope you will find the update useful. We will keep you posted on further developments in this regard.
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