Online sellers operating on platforms such as Amazon, Flipkart, Meesho, etc., are subject to commissions deducted by the platform as a percentage of the sale price. Understanding GST registration, return filing requirements, and invoicing rules is essential for such sellers.
GST Registration For Online Sellers
Registering under GST is essential for e-commerce sellers. The standard exemption limit doesn’t apply to them, with distinct thresholds for normal and northeastern states. Online platform registration is contingent on GST registration. Various scenarios determine the need for registration, emphasizing compliance with GST norms.
1.A seller is already registered under GST: The seller can continue their registration. There is no need for any intimation/notice/change in registration. But, if a person is registered under the composition scheme, they must take registration under the normal scheme.
2.A person selling exempted goods: A person selling only exempted goods can get registered on online selling platforms without GSTIN. They are not required to take GST registration.
Why GST Important For E-Commerce Business?
GST eradicates tax cascading, ensuring tax is not levied on top of existing taxes. This enhances the competitiveness of e-commerce sellers, enabling them to provide goods and services at reduced prices.
Is GST Registration Mandatory For E-Commerce?
Absolutely, GST registration is mandatory for all e-commerce operators, regardless of their sales turnover. Therefore, it is essential for every e-commerce operator to register under GST before commencing business or within 30 days of initiating operations.
Can I Sell On Ecommerce Without GST?
No, registration under GST is mandatory for all e-commerce operators. Therefore, every e-commerce firm must register for GST before commencing operations or within 30 days of starting their business.
How To File GST Return As A Ecommerce Sellers?
E-commerce operator or marketplace (e.g., Flipkart, Amazon, etc.): An entity that owns, operates, or manages a digital or electronic facility or platform for e-commerce.
Suppliers/aggregator on an E-commerce platform: An entity that provides goods or services on an E-commerce platform.
GST Return Filing For E-Commerce Operators And Sellers
1. The sellers/aggregators who are registering themselves for E-commerce platform shall register themselves under GST.
2. There are several returns to be filed under GST for E-commerce operators and suppliers.
3. Unlike regular businesses, there is no threshold exemption for the E-commerce suppliers and operators.
4. These E-commerce entities come under the GST compliance irrespective of the value of supply and hence are required to file GST return online.
5. GST return form includes the details such as purchases, sales, output GST and Input Tax Credit (ITC) which are to be submitted on monthly, quarterly or annual basis.
6. GST return filing forms for E-commerce operators and sellers
7. E-commerce suppliers/aggregators are required to file Form GSTR-1, GSTR 2, GSTR 3 monthly and GSTR-9 is to be filed annually.
8. E-commerce operators are required to file their GST return in form GSTR 8 in monthly basis.
Form GSTR 1
1. GSTR 1 is a monthly return filed for sales or outward supplies.
2. Every business registered under Goods and Services Tax must file GSTR 1.
3. The due date for filing GSTR 1 for E-commerce sellers would be 10th day of following month.
Form GSTR 2
1. GSTR-2 is a monthly return for inward supplies of goods or services or both received during a tax period.
2. The filing of GSTR 2 makes them eligible to avail Input Tax Credit wherein the taxpayer can claim the refund of tax on purchases or deduct that much amount from the tax payable on outward supplies.
3. The due date for GSTR 2 would be 15th of subsequent month.
Form GSTR 3
1. GSTR-3 is a consolidated monthly return which contains details of tax liability along with the tax collected on outward supplies and tax paid on inward supplies by registered E-commerce supplier/seller.
2. It is an auto-populated process through GSTR-1 and GSTR-2 of the registered person.
3. The due date for GSTR 3 return filing would be 20th of the next month.
Form GSTR 8
1. GSTR 8 is one of the most important form which need to be taken utmost care for an E-commerce operator.
2. GSTR 8 is a statement that must be filed by E-commerce operators every month. It must contain the details of supplies made to customers through the taxpayer’s E-commerce portal by both registered taxable persons and unregistered persons, customer’s basic information, the amount of tax collected at source(TCS) (to be counted at 1%) , tax payable, and tax paid.
3. The monthly due date for GSTR 8 would be 10th of the following month.
Form GSTR 9
1. All the taxpayers registered under GST including E-commerce sellers and operators are required to file their annual return in a particular form. That form is called the GSTR 9.
2. GSTR-9 consists of details about the supplies made and received during the year under different tax heads i.e., CGST, SGST, and IGST.
3. It consolidates the information furnished in the monthly/quarterly returns during the particular year.
4. The due date to file the GSTR-9 is 31st Dec of the preceding year.
Who Will Collect TCS Under GST?
E-Commerce aggregators are obligated by GST law to collect and remit a 1% tax on each transaction under Section 52 of the CGST Act. Sellers on online platforms receive payments after a 1% tax deduction. All online traders and dealers must register under GST, irrespective of turnover, to claim the tax collected by aggregators. This ensures compliance with tax regulations and facilitates a streamlined taxation process for e-commerce transactions.
Notes:
1. Supplier of services, who is not supplying through an e-commerce operator liable to collect tax at source, having a turnover of less than Rs.20 lakh are exempted from obtaining registration under GST.
2. E-Commerce operators liable under Section 52 of the CGST Act cannot opt into the composition scheme.
GST Registration Rules For Those Liable To TCS
As outlined in Section 24 of the CGST Act, all e-commerce entities are obligated to obtain GST registration. Entities responsible for collecting TCS must electronically submit a registration application through the GST portal or a designated facilitation center using form GST REG-07. The form, duly signed or verified through Electronic Verification Code (EVC), should specify the State where operations are conducted (part-A) and, if different, the State of the principal place of business (part-B) as per CGST Rule 12(1A). This ensures compliance with GST regulations for e-commerce operators across states and union territories.