The Goods and Services Tax ( GST ) Council had announced a significant revision to the Tax Collected at Source ( TCS ), the corresponding changes are reflected in the GST Portal, about which the Goods and Services Tax Network ( GSTN ) has issued an advisory on August 02, regarding the changes in GST Return GSTR-8.
According to the council’s recent decision, the TCS rate will be reduced from the current 1% (comprising 0.5% CGST and 0.5% SGST/UTGST, or 1% IGST) to 0.5% (comprising 0.25% CGST and 0.25% SGST/UTGST, or 0.5% IGST).
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This change was scheduled to take effect retrospectively from July 10, 2024, as per Notification No. 15/2024 dated July 10, 2024.
Period from July 1 to July 9, 2024:
During this timeframe, the old TCS rate of 1% remains applicable. Taxpayers must continue to collect and report TCS at this rate for all transactions conducted between these dates.
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From July 10, 2024, Onwards:
The revised TCS rate of 0.5% will be in effect starting from July 10, 2024. Taxpayers are required to update their systems and processes to reflect this new rate for all transactions occurring from this date forward.
In addition to the rate changes, there have been reports of validation errors encountered by some taxpayers while filing GSTR-8 for July 2024. The GSTN team has acknowledged these issues and is actively working on implementing the necessary changes as announced by the GST Council.
The update is expected to be completed within the next few days, allowing users to file their returns from midnight on August 6, 2024.
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The GSTN team has expressed regret for any inconvenience caused by these issues and assures taxpayers that the necessary steps are being taken to resolve them promptly.
For more information and updates, taxpayers are advised to refer to the official notifications and advisories issued by the GST Council and GSTN.
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