India e-commerce GST collected at source Apr 2018

Sun 1st Oct 2017

India e-commerce platforms will be required to withhold 1% GST of the taxable value of supplies at source on payments to vendors and suppliers from 1 April 2018.  The provision will apply to payments about RS 2.5 lakh.  Platforms withholding the tax will be required to remit it to the government and file a GSTR-8 return by the 10th of the month following.  This is then matched to the supplier’s GSTR-1 and reconciled. The supplier and e-commerce platform must agree on any differences and correct by the 30th of the filing month.

Tax Collected at Source (TCS) has been delayed because many small enterprises trading on platforms such as Amazon, Flipkart, PayTM, etc. are not fully registered to manage the withheld tax.

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