GST, TDS & TCS Filing Support for Sellers of Amazon, Flipkart &
other Online Marketplaces

An online seller can sell its products on various e-commerce platforms like Amazon, Flipkart, Meesho etc.The online platform charges a commission from the seller as a certain percentage of the sale price. Let us discuss the GST registration, return filing requirements and invoicing rules for online sellers.

GST registration for online sellers

A person who sells goods on e-commerce platforms needs to get registered under GST and get a GST Identification Number (GSTIN). The basic exemption limit of Rs 40 lakh (for normal category states) and Rs 20 lakhs (for north eastern states) does not apply to online sellers. A person can register on online selling platforms only if registered under GST. Let us discuss the registration requirements in different scenarios:

  • 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.
  • 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 ecommerce business?

GST eliminates the cascading effect of taxes, where tax is levied on tax. This improves the competitiveness of e-commerce marketplace sellers and allows them to offer goods and services at a lower price.

Is GST registration mandatory for e-commerce?

Yes, registration under GST is mandatory for all e-commerce operators irrespective of the sales turnover. Hence, prior to commencing business as an ecommerce operator or within 30 days of commencing business, all ecommerce operators are required to be registered under GST.

Can I sell on ecommerce without GST?

No. Registration under GST is required for all e-commerce firms. As a result, all e-commerce operators must register with the GST before starting their business or within 30 days.

How to file GST return as a Ecommerce sellers?

E-commerce operator/marketplace (e.g. Flipkart, Amazon etc): It is an entity which owns, operates or manages digital or electronic facility or platform for E-commerce.

Suppliers/aggregator on E-commerce platform: It is an entity which supplies 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

    • GSTR 1 is a monthly return filed for sales or outward supplies.
    • Every business registered under Goods and Services Tax must file GSTR 1.
    • The due date for filing GSTR 1 for E-commerce sellers would be 10th day of following month.

    Form GSTR 2

    • GSTR-2 is a monthly return for inward supplies of goods or services or both received during a tax period.
    • 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.
    • The due date for GSTR 2 would be 15th of subsequent month.

    Form GSTR 3

    • 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.
    • It is an auto-populated process through GSTR-1 and GSTR-2 of the registered person.
    • The due date for GSTR 3 return filing would be 20th of the next month.

    Form GSTR 8

    • GSTR 8 is one of the most important form which need to be taken utmost care for an E-commerce operator.
    • 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.
    • The monthly due date for GSTR 8 would be 10th of the following month.

    Form GSTR 9

    • 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.
    • GSTR-9 consists of details about the supplies made and received during the year under different tax heads i.e., CGST, SGST, and IGST.
    • It consolidates the information furnished in the monthly/quarterly returns during the particular year.
    • 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 responsible under the GST law for collecting and depositing tax at the rate of 1% on each transaction under the Section 52 of the CGST Act. Any dealers/traders selling goods/services online would get the payment after deduction of 1% tax. All the traders/dealers selling goods/services online would need to get registered under GST even if their turnover is less than the prescribed threshold limit, for claiming the tax collected by the aggregators.

Notes:

  • 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.
  • 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 per Section 24 of the CGST Act, all the e-commerce companies must obtain GST registration mandatorily. Any person who is required to collect TCS must electronically submit an application for registration, duly signed or verified through Electronic Verification Code (EVC), using the form GST REG-07 either directly on the GST portal or from a facilitation center notified by the Commissioner. As per the CGST Rule 12(1A), the e-commerce operator not having physical presence in the State or Union Territory where the operations are conducted should mention such State name in part-A of the REG-07 form. Further, the State in which the principal place of business is situated must be mentioned in part-B, if it is different from the State mentioned in part-A.