Question

As per the New provisions of TCS for an E-commerce operator, It is mandatory to collect TCS from his Customer and deposit the same on behalf of supplier through the GST Return as GSTR-8. Is it mandatory to have GSTIN for each and every supplier doing business through with E-Commerce Operator? It means E-Commerce operator can do business only with GST Registered Supplier as GSTIN of the supplier is a mandatory field in GSTR-8? But if the operator is doing business with unregistered supplier then how can we show TCS Collected & Offset the liability in GSTR-8?

Answer

Section 24 of CGST Act relating to compulsory registration in certain cases vide clause (ix) provides that "persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52" is compulsorily required to take registration under GST.

Therefore in view of above every supplier doing business through E Commerce Operator is registered under GST.

However Notification 65/2017 Central Tax exempt persons from registration who are making supplies of services other than supplies u/s 9(5) through e-commerce operator and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of 20 lakh rupees and 10 lakh in 'special category States'.

Therefore E commerce operator generally deals with registered suppliers having GSTIN except suppliers of services that are exempted vide above said notification on which it is not required to collect TCS.

Further as per section 52 of CGST Act "every electronic commerce operator (hereafter in this section referred to as the 'operator'), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator."
Explanation.''For the purposes of this sub-section, the expression 'net value of taxable supplies' shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
TCS provision is required to be complied by E commerce operator, therefore E commerce operator is required to deduct TCS on all taxable supplies of goods even if Supplier of goods supplying through e commerce operator is not registered.
If GSTR-8 does not allow you to show TCS collected from unregistered supplier, then it is portal related issue and you are required to contact helpdesk. (Reply dt.31/01/2019)