Advisory in respect of Changes in GSTR 8 (Statement for tax collection at source) dated Aug 2nd, 2024 

Form GSTR-8 provides details of supplies effected through e-commerce operators and the amount of tax collected at source by them. The GST Council had decided that TCS rate shall be reduced from the current 1% (0.5% CGST + 0.5% SGST/UTGST, or 1% IGST) to 0.5% (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) effective from 10/07/2024 vide Notification No. 15/2024 dated 10.07.2024. Thus, the following important aspects regarding the TCS rates effective from 10.07.2024 are to be noticed:

1. Period from 1st July to 9th July 2024: • During this period, the old TCS rate of 1% will continue to apply. Taxpayers are required to collect & report TCS at this rate for all transactions happened between these dates. 
2. From 10th July 2024 onwards: • A revised TCS rate of 0.5% will come into effect from 10th July 2024. Taxpayers must ensure their systems and processes are updated to reflect this new rate for all transactions happening from 10th July forward. 

Additionally, some taxpayers have reported validation errors while filing GSTR-8 for July 2024. This is to inform them that the GSTN team is currently implementing the changes announced by the GST Council regarding GSTR-8. This work is expected to be completed within the next couple of days, and users would be able to file their returns starting from midnight on August 6, 2024.