Due to the technical glitches at GSTN Network, E-commerce firms have been facing difficulties to file the details of tax collected at source (TCS) which adversely influencing the working capital of small retailer firms.
“Flipkart had deducted TCS and deposited against your respective GSTIN(s) for the month of October 2018. However, due to a technical issue at GSTN (Goods & Services Tax Network) on government GSTN portal, there could be a delay in the reflection of such TCS credit into your electronic cash ledger,” Flipkart stated to its sellers.
As per the discussion with GSTN officials, the issues relating to the TCS at GST Network would be soon solved by the tax officials.
“Yes, we worked with the GST authorities and GSTN. The issues have been addressed and we were able to deposit the tax collected from our sellers. We believe some of the sellers have approached the GSTN to ensure that credit is duly reflected in their accounts”, said Amazon spokesperson.
The delay in filing TCS on GSTN portal has been influencing the working capital of small retailer firms especially to those who are dealing in such kind of business. The Government has to address the issue as soon as possible, said e-commerce firm.
New Rules came into effect from October 1, under which e-commerce firms are entitled to collect tax at the rate of 0.5% each for state and central GST (1% total) on making payments to a vendor who sells goods on its platforms.
This will create a record which would further to the sellers in deductions against any GST liability finalized.
Previously, the e-commerce companies requested to the government for the extension of the deadline of tax collected at source (TCS). Under the GST reform, e-commerce firms have to file the returns by the tenth of the following month. If in case the companies won’t submit the TCS returns by 10th November, he will be responsible to pay the penalties as per the legal government provisions.
A survey had been conducted by industry body FICCI earlier this year under which the industry body highlighted on the technical issues of the GSTN portal which is to be considered one of the major issues. To make the GST regime successful, it is essential to work on the technical glitches of the GSTN portal.
As per the survey, some issues highlighted, “Problems like a delayed reflection of updated data as well as payments, delays in process of input credit set-offs, inability to upload heavy files of certain formats and lack of provision to modify or revise errors posed major challenges to businesses,” the survey pointed out.
