Process to claim TCS Credit in GST for an e-commerce seller

Do you sell products on e-commerce platforms like Amazon, which are known as the e-commerce operators primarily offering a digital platform for those selling online to conduct a transaction over the web or conducting business transactions over the digital portals?

However, there are several online sellers who take part in ecommerce transactions but are new in this domain, remaining unaware of the restrictions of TCS with GST. As an online seller, obtaining and making a claim at the perfect moment, their best ITC or Input Tax Credit is highly crucial. In most cases, it is seen that those selling over the web don’t claim ITC in TCS form basically.

Anytime when the online seller obtains their payout in accordance with the payment circle, ECO, or E-commerce operator is essential to deduce the TCS as part of GST that the one selling online can obtain credit through their month wise GST return, also known as GSTR-3B.

Obtaining ITC as TCS Credit can lower the liability of output, especially of those paying taxes to a considerable level. TCS credit is going to be there for the taxpayer as an Electronic Cash Ledger.

The TCS Credit obtained return is a distinct return as part of GST that must be filed every month in accordance with its application.

Now, let’s take a peek into the entire process on the way any e-commerce seller can go for claiming TCS credit within GST.

Step 1:
First, do login into Dashboard of GST and tap on “Continue to Dashboard.”

Step 2:
Here, a taxpayer can witness the balance within the ledger balance as the Electronic Cash Ledger and Electronic Credit Ledger.

In this case, the taxpayer does have INR 340 as part of Electronic Cash Ledger prior to filing in the TCS Return in GST, as evident here.

Step 3:
Go to the “Services” section and then to “Returns”, and then do select the “TDS and TCS credit received” as evident in the image.

Pick the specific Financial Year for which it is essential for you to file the TCS Credit return as part of GST, and also select the Return filing period.

Step 4:
Put a click on “Prepare online”. Here the taxpayer can witness the auto-circulated detail in accordance with the concerned GSTR-7 and GSTR-8 as filed by the ECO.

Step 5:
Do select “TCS credit received”, in which the taxpayer can find the detail of every ECO that become liable for deducting TCS within GST for the concerned online seller.

Various details, ranging from the collector’s GSTIN, Tax duration of GSTR-8, Suppliers taxable value, sent back supplies, net worth, total tax obtained through ECO as the IGST or Integrated Tax, CGST or Central Tax, as well as SGST or State Tax.

The taxpayer is essential to select the option, be it the “Accept” the details as provided in return or whether they can “Reject” the detail in accordance with their own reconciliation.

If those occasions when they discover that each of the fields is accurate, then you have to tap on “Checkbox” and then do tap on “Accept” as it appears in the image here.

Once you opt for “Accepting” the record, the Status of action is going to be varied to “Accepted”, as is evident in the image below.

Next, put a click on “Click on the declaration and then on “Proceed to file”. The option of File TDS TCS Credit received option is going to get enabled only when you put a tap on the “Proceed to file”.

A caution or warning text is going to appear that depicts that you are going to file. “Are you sure you want to continue”? If yes, ‘Click on the Yes to proceed’.

There is the option for the taxpayer in order to file the TDS TCS Credit return, whether through DSC or through the EVC.

On those occasions when you went for EVC option, provide the OTP obtained over your Registered mail id and the mobile number, and then do validation of OTP.

Successfully validating EVC, a confirmation appears confirming TDS and TCS credit received of GSTIN XXXXXXX for the return period of XXXXXX has been filed successfully.

XXXXXX is The Acknowledgement reference number.

Next, the taxpayer can go to the dashboard in order to check whether the TCS Credit that has been filed is received within the Electronic Cash Ledger, as evident below.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

Related Knowledge

Enhance your knowledge with

Subscribe To Our Newsletter

To get the latest news on changes of compliance