TCS value to be disclosed or not ?

[Ramanathan Seshan]

Dear Experts,

In our GSTR-1 should we include TCS value in the Value column of GSTR-1?

Regards,

S Ram

[KASTURI SETHI]

 See Board's Circular No.76/50/2018-GST dated 31.12.2018 and corrigendum No.20/16/04/2018-GST dated 7.3.18. (Serial No.5 refers).

[YAGAY and SUN]

Inclusion of TCS Value in GSTR-1

The question of whether TCS (Tax Collected at Source) value should be included in the Value column of GSTR-1 has been addressed in Board's Circular No. 76/50/2018-GST dated 31st December 2018 and the Corrigendum No. 20/16/04/2018-GST dated 7th March 2018.

Board's Circular No. 76/50/2018-GST and its Corrigendum:

The Circular No. 76/50/2018-GST clarified how the TCS provisions under Section 52 of the CGST Act, 2017 should be treated in the GSTR-1 return. According to the clarification:

1. TCS Collected by E-Commerce Operators:
   • Under Section 52 of the CGST Act, e-commerce operators are required to collect tax at source (TCS) on the transactions made through their platform.
   • The TCS is essentially a portion of the sale transaction amount which is collected by the e-commerce operator and deposited with the government.
2. Reporting of TCS in GSTR-1:
   • The TCS amount should not be included in the "Value" column of GSTR-1.
   • Instead, it is clarified that TCS should be reported separately in the GSTR-8 return, which is filed by the e-commerce operator.
   • GSTR-1 should report the gross value of the transaction, excluding the TCS amount.

Key Points from Circular and Corrigendum:

• Gross Value Excluding TCS:
  • The value to be reported in the GSTR-1 for sales made through an e-commerce platform should be the gross value of the goods or services supplied, excluding the TCS amount.
  • The TCS amount collected by the e-commerce operator should be reported in GSTR-8 and not in GSTR-1.
• Correct Reporting Mechanism:
  • GSTR-1: Report gross value of the transactions (i.e., without including the TCS).
  • GSTR-8: Report the TCS collected during the period.

Summary:

Based on Circular No. 76/50/2018-GST and the Corrigendum dated 7th March 2018, you should not include the TCS value in the Value column of GSTR-1. The value reported in GSTR-1 should reflect the gross transaction value excluding TCS. The TCS itself should be separately accounted for and reported in GSTR-8 by the e-commerce operator.

This ensures that there is no duplication of reporting for the TCS collected, and it aligns with the requirement to report the correct gross value of supply in GSTR-1.

[Shilpi Jain]

GSTR-8 is the return to be filed by the person doing TCS. Are you the supplier or the e-comm operator?

[Ramanathan Seshan]

Dear Shilipi-mam,

We are the supplier. 

Regards.

S Ram

[Ramanathan Seshan]

Thanks Sethi-sir for your valuable response

[Ramanathan Seshan]

YAGAY and SUN-sir thanks for your detailed response

AI Summary

TCS reporting: exclude TCS from GSTR 1 value and report collected TCS separately in GSTR 8.
The TCS amount collected by an e commerce operator is not to be included in the "Value" column of GSTR-1; suppliers must report the gross transaction value excluding TCS in GSTR-1, while the e commerce operator reports TCS collected in GSTR-8, pursuant to Board Circular No.76/50/2018-GST and its corrigendum.