Updated on: June 11th, 2022 11:52 AM

CBIC waives Interest for Non-Filing of GSTR-8 by Prescribed E-Commerce Operators

The Central Board of Indirect Taxes and Customs (CBIC) has waived the interest rate on account of the non-filing of GSTR-8 by certain e-commerce operators under section 52 of the Central GST Act, 2017.

Section 52 of the CGST Act, 2017

Section 52 of the CGST Act, 2017 provides for Tax Collection at source, by e-Commerce operator in respect of the taxable supplies made through it by other suppliers, where the consideration in respect of such supplies is collected by him.

Waiver of Interest for Non-Filing of GSTR-8

The Government has notified that the ‘Nil’ rate of interest shall be levied on delay in filing GSTR-8 for certain Electronic Commerce Operators who had deposited the taxes in the electronic cash ledger but failed to file returns within the due date due to technical glitches on the portal. There shall be no levy of interest from the date of depositing the tax collected in the electronic cash ledger till the date of filing of GSTR-8. In this regard, notification has been issued which also provides a class of registered persons to whom this benefit shall be available.

GSTR-8 Filing for E-Commerce Companies

GSTR 8 is a monthly return furnished by every electronic commerce operator who is required to deduct Tax Collected at Source under GST. This return reflects details of the supplies made through the e-commerce portal and the amount of tax collected from suppliers of goods and services. Furthermore, the operator can also make changes to the details of supplies furnished in any of the earlier period statements.

Tax Collection at Source (TCS) for E-Commerce Companies

As mentioned above, Section 52 of the CGST act relates to the provisions regarding the collection of Tax Collected at Source (TCS). As per this section, every electronic commerce operator needs to collect tax from the suppliers of goods and services. These suppliers sell goods or services through an operator’s portal and pay the operator for the sales made via his portal. For example, if a product is sold for Rs.10,000 on an e-commerce platform, the e-commerce platform would be required to deduct and remit Rs.100 as TCS to the Government.

Due Date for filing GSTR 8

The due date to file GSTR 8 is the 10th day of the month succeeding the month for which TCS is to be collected.

• The amount of tax that the operator collects also needs to be deposited by the 10th day of the following month during which such a collection is made
• The operator is also required to file an annual statement in the prescribed format in GSTR 9B. This return needs to be filed by 31st December following the end of each financial year.

Penalty for Late Filing of GSTR 8

If the operator fails to file the return within the due date, a penalty of Rs 200 per day (Rs 100 each for CGST and SGST) is charged. This is subject to a maximum of Rs 5,000. Further, there is no fee for late filing of IGST. Also, interest at the rate of 18% needs to be paid along with the late fee. This is calculated by the taxpayer on the amount of tax to be paid. The interest is calculated from the day succeeding the due date of filing such a return until the day tax is paid. With this notification, CBIC announced that the ‘Nil’ rate of interest shall be levied on delay in filing GSTR-8 for certain Electronic Commerce Operators who had deposited the taxes in the electronic cash ledger but failed to file the return within the due date due to technical glitches on the portal.