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How an E-Commerce Seller can claim TCS Credit in GST

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.

TDS & TCS Credit Under GST

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.

 Step 1:

Login to your GST Dashboard and Click on “Continue to Dashboard”

Goods and services tax dashboard

Step 2:

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.

Electronic cash ledger electronic credit ledger

Step 3:

Navigate to “Services”, then “Returns” and then select “TDS and TCS credit received” as shown in the image.

TDS and TCS credit return

Select the Financial Year for which you are required to file TCS Credit return under GST and the Return filing period.

TDS and TCS credit received

Step 4:

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.

Prepare online TCS credit return under GST

Step 5:

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.

TCS credit in GST

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)

TCS credit received summary

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.

TCS credit under GST

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.

file TCS credit under GST

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”.

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.

TCS credit warning message

The taxpayer has the option to file the TDS TCS Credit return either by using DSC or with EVC.

File 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.

OTP verification

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.

successfully filed TCS credit return confirmation message

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.

Read More:

Self-Judge your B2B performance on Amazon India through Amazon B2B Central

How to file GSTR-3B for amazon sellers

CA Devesh Thakur

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6 COMMENTS

  1. Sir kindly suggest me right procedure regarding this issue- Amazon has collected tcs on sales inclusive of cancelled invoices (eg ₹50000) and I am showing total outward supplies of sales excluding cancelled invoices (₹48000). So therr is difference in sales shown by amazon and me. What can be done in this situation?

    • Dear Sugam,
      In case you are sure about the TCS on cancelled invoices, you need to check the credit note/amendment of TCS also while filing the TCS return. Generally, what we have seen is an online sellers never considered amendments in TCS credit received. Every online seller has to reconcile the data on monthly basis. You can either accept or reject the TCS credit details as per your data. If you accept the same, that means you have made sales for the said amount.
      You can reach seller support on monthly basis to reconcile your data with the GST return filed by Amazon.

  2. I want to know what to do if there is difference in sales shown by amazon at tcs return and my actual sales for a month. Please help

    • Dear Sugam,

      In case of any difference, every online seller needs to reconcile the data on monthly basis. If you claim TCS while filing the GST returns, that means you are confirming the amount of sales/payment made by Amazon to you (as per the return filed by ECO i.e. Amazon)

    • Dear Prajjwal,

      TCS deducted by the e-commerce operator will reflect under the electronic cash ledger, in order to avail of the TCS credit being an online seller, you will have to file TCS/TDS credit return.
      If you want to know more about how you can file such a return, you can refer to the below link:
      https://youtu.be/2hmRb9JxDbk

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