Overview of GST for eCommerce Sellers

GST for eCommerce Sellers in which e-Commerce platforms such as Amazon, Flipkart, and Snapdeal are expanding rapidly. These platforms allow other sellers to sell on these platforms. 

To be able to sell on these platforms, sellers must register for GST. This is a complete guide for people who wish to sell products on any of these platforms. 

GST rules are different for people who provide services through platforms such as UrbanClap, food through Swiggy, or taxi services through Uber/Ola. This guide only applies to people who sell products on Amazon. Flipkart, Snapdeal, Meesho, Udaan, Shopclues, or other similar platforms. In addition, this guide does not apply to people who sell on their own website, and general terms apply.

See also: For GST for eCommerce Sellers

Amazon, Flipkart, and other online platforms. And GST calculator 

GST registration: GST for eCommerce Sellers

Anyone who wants to sell products on one of these platforms must register for GST for eCommerce Sellers and obtain a GSTIN. The 40/20/10 lakh limit does not apply to online sales. These platforms also do not allow registration without a GSTIN. 

No separate registration is required for online sales. Those who already have a GSTIN do not need to register again. In addition, there is no need to intimidate/notify/modify during registration. 

However, the person named must register in the usual way. Registered members under the membership plan are not allowed to sell online. 

Please note that people who sell through this website are not e-commerce operators. Amazon, Flipkart, etc. are e-commerce operators, not people who sell through them. Therefore, the rules that apply to e-commerce operators do not apply to you. 

Please do not choose an e-commerce operator when submitting the registration form, as this may cause serious problems. 

You can also use the CA In Delhi GST registration service.

GST Returns:

This Provision use for online sellers and offline sellers. Currently, GSTR3B must be sent before the 20th of the next month of each month. In addition, GSTR1 must be submitted every quarter (April to June, July to September…) until the end of the next month. Individuals with a turnover of more than Rs 1.5 crore must submit GSTR1 each month before the 11th of the next month. Those with sales of less than Rs 1.5 crore can voluntarily choose to submit GSTR1 every month, and once this is done, they cannot be changed for that year.

Note: That even if there is no transaction at all, the GST for eCommerce Sellers declaration form must be submitted from the registration month, Other words, NIL returns are also required to be filed, otherwise a penalty.

The GST refund system takes effect on April 1, 2020. Online sellers must submit regular refunds. (GST RET01) on the new system. When the sales reach Rs. 5 crores, a regular refund must be submitted quarterly; otherwise, it must be submitted monthly.

TaxAdda specializes in providing value-added tax refund services for online merchants. Visit our service page to learn more.

Who should pay the consumption tax? 

A common question every new GST for eCommerce Sellers asks himself is who is responsible for paying for GST?

Amazon, or the seller selling on it. The answer is that the seller is responsible for the goods and services tax on the goods sold. 

Something that the seller sells directly to the buyer. Amazon only acts as an intermediate commission agent. Therefore, the seller is responsible for paying GST, not Amazon.

The method of calculating GST will be described later in this article. 

Commissions and your contribution:

The online platform charges sellers a certain percentage of the sales price as a commission. The percentage depends on the platform and product category. 

The platform must charge 18% of the GST on the prescribed commission, and the seller can offset the provisional tax of the prescribed GST.

The platform can also issue points for commissions or other expenses. The GST for this credit must be deducted from the GST on the invoice to receive the temporarily declared tax credit.

The platform also issues invoices for transportation, advertising, and other expenses. Profitable loans can be drawn for all these expenses. 

Invoicing to customers:

As mentioned above, sellers sell products directly to buyers, so sellers must issue GST invoices to customers, and attach customer name, address, product details, amount, price, GST amount

Other details, even though the customer Is the invoice customer. Almost all major platforms provide invoices directly to customers through their platforms. The seller only needs to print the invoice and send it with the goods. 

TCS And How To Claim:

Amazon’s requirements, Flipkart must deduct TCS equal to 1% of the total sales price of the amount due to you. This TCS can be declared. As a tax credit for online retailers. The mentioned TCS is displayed in the TCS list, and it is necessary to compare the sales specified in this statement with the actual sales and accept the TCS. Then add the total number of TCS.

Can I sell Flipkart on Amazon without GST? 

If you sell tax-free products, you can only sell them online without GST. If you sell products covered by GST, you must purchase a GST number to sell online. You must take GSTIN even if the bill is less than 20 Lakh.

Do I need to register specifically to sell online?

No, there is no special register for online sales. If you are already registered, you can provide the same GSTIN on Amazon, Flipkart, etc.

Can buyers choose to add their GSTIN to the invoice? 

Amazon and PayTm provide customers with the option to add their own GSTIN. However, Flipkart does not provide this option. The GSTIN must be included in the invoice so that the buyer can receive a tax credit when entering GST.

How much money does the online retailer get from their bank account?

The amount paid by the e-commerce operator corresponds to the turnover. Amount minus commission minus packaging and shipping costs minus TCS minus advertising costs (if any) minus storage costs (if applicable). 

How do you calculate the goods and services tax to be paid? 

The goods and services tax paid corresponds to the goods and services tax on the sale of goods less all input tax credits. Generally available pre-tax credits are goods and services tax, which should be paid at the time of purchase of goods, invoices, advertising invoices, transportation invoices, etc. For examples of online sellers, see our GDS guidelines.

If you are looking for your GST for eCommerce Sellers, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

 
 
 
 
 
 
 
  
 
 
 
  
 
 
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