GST: All the sellers are expected to file their GSTR1 on time with the appropriate calculations made on the sales value and taxes, and deposit the tax paid by the buyers through HandyKart on or before the due date. Other than this, GST is also applicable on shipping charges and commission which HandyKart charges on its suppliers. No matter the seller is individual proprietor, partnership firm, or any other organization, due for either monthly submission, every seller have to submit all applicable GST returns on the government portal timely. As you know tax invoice is one of the most important documents under GST, so, for the smooth running of this continuous GST process, suppliers are expected to maintain the invoice-wise details of every supply. The returns should be treated separately by producing the debit notes. And all the GST treatment will be reversed through the debit note only. A correction could be made in the next months GST returns. So, it is advised to comply with all GST laws carefully to minimize the chances of issues pertaining to GST.
TDS/TCS: There should be no confusion in between TDS and TCS deducted and collected respectively by HandyKart under the parallel provision of TDS and TCS set by the laws, as TDS is charged under Direct Tax and TCS is charged under Indirect tax. Under section 194-O of the Income Tax Act, HandyKart will deduct @ 1% TDS on the gross value of sale for each transaction at the time of sale in the case of prepaid payments or at the time of making payment by an e-commerce recipient after-sale. The same will be reflected in 26AS of the sellers and the sellers can treat this deduction as the already paid taxes and set off their tax liability with the deducted amount. For complying with section 52 of the CGST/SGST Act 2017, HandyKart will collect TCS @1% of the net value of taxable supplies for intra-state as well as inter-state transactions. For better clarification and know the difference between the two, understand it with this example. A seller supplied the taxable goods of worth Rs 100,000/- from HandyKart and got a debit note of Rs 10,000/-. Then, the TCS will be charged 1% on Rs. 90,000 (100,000-10,000) without considering the impact of GST. Now one customer bought a phone of worth 50,000 (invoice price or gross value) from a seller through HandyKart and credited the amount to HandyKart after receiving the same. And one another buyer bought a phone and made the payment to the suppliers directly of worth Rs. 20,000. Now, HandyKart will deduct TDS @1% for that supplier on gross value 70,000/- (50,000+20,000). HandyKart will deposit the TCS collected from sellers to the government by filing GSTR-8 every month. And the same will be reflected on the GSTIN of the sellers. Resultantly, sellers will also be able to take the GST input on time. The TCS will reflect in the cash ledger of the suppliers while the regular GST tax on commission will reflect in GSTR 2A of the suppliers.