Are you selling online on any E-Commerce portal like Amazon, Flipkart, Limeroad, Pepperfry, Paytm, etc. who are known as E-Commerce operators that provide a digital platform to the online sellers for transacting online/ doing business transaction through these digital portals.
Many Online sellers (E-Commerce participants) who are new to this area are unaware of the provisions of TCS in GST.
Being an online seller, getting and claiming at the right time their eligible ITC (Input Tax Credit) is of utmost importance. On many occasions what we have seen that online sellers are not claiming ITC in form of TCS.
Whenever the online seller gets their payment as per their payment circle, ECO i.e. E-Commerce operator is required to deduct TCS under GST, which an online seller can get credit in their monthly GST Return i.e. GSTR-3B.
Getting ITC in form of TCS Credit can reduce the output liability of the taxpayer to a reasonable extent. TCS credit will be available to the taxpayer in the form of an Electronic Cash Ledger.
This TCS Credit received return is a separate return under GST, which needs to be filed on monthly basis as per the applicability.
Now let us understand the full procedure, how an E-Commerce seller can claim TCS credit in GST.
Login to your GST Dashboard and Click on “Continue to Dashboard”
Here, Taxpayers can see the balance in their ledger balance in the form of Electronic Cash Ledger and Electronic Credit Ledger.
In our example, the taxpayer is having Rs. 10 under Electronic Cash Ledger before filing the TCS Return in GST as shown in the image below.
Navigate to “Services”, then “Returns” and then select “TDS and TCS credit received” as shown in the image.
Select the Financial Year for which you are required to file TCS Credit return under GST and the Return filing period.
Click on “Prepare online”. The taxpayer can see the auto-populated details as per the respective GSTR-7 and GSTR-8 filed by the ECO.
Select “TCS credit received” where the taxpayer can see the details of each ECO that are liable to deduct TCS under GST for the said online seller.
Details such as GSTIN of the collector, Tax period of GSTR-8, Suppliers taxable value, supplies returned, net value, amount of tax collected by ECO in form of IGST (Integrated Tax), CGST (Central Tax), and SGST (State Tax)
The taxpayer is required to choose the action whether to “Accept” the details as shown in the return or they can “Reject” the details as per their own reconciliation.
In case they find every field to be correct, click on the “Checkbox” and click on “Accept” as shown in the image below.
After “Accepting” the record, the Status of action will be changed to Accepted as shown in the image.
Click on Click on the declaration and then to “Proceed to file”. File TDS TCS Credit received option will get enable only after you click on the “Proceed to file”.
A warning message will pop up which says you are about to file. Are you sure you want to continue? Click on the Yes to proceed.
The taxpayer has the option to file the TDS TCS Credit return either by using DSC or with EVC.
In case you opted for the EVC option, enter the OTP received on your Registered Email Id and Mobile Number and validate the OTP.
On successful validation of EVC, a confirmation message will be displayed which says TDS and TCS credit received of GSTIN XXXXXXXXXXXXX for the return period XXXXXX has been successfully filed.
The Acknowledgment reference number is XXXXXXXXXXXXXXXXXXX.
Now, the taxpayer can visit the dashboard to check whether the filed TCS Credit has been received under Electronic Cash Ledger as shown in the image.
CA Devesh Thakur