GST For E-Commerce

India’s e-commerce market is estimated to cross Rs. 600000 crores by the year 2020.

While the number of sellers and their business have increased significantly, GST  has come out with rules & regulations specific to this segment. Some of this compliance are:

In our previous article about the Impact of GST on eComemrce, we have informed you about TCS – for eCommerce. Here is the new update on the same:

Also Read: GST Impacts Analysis and Outlines by Experts | FinPlus

Tax Collection at Source by Marketplace Operator:

As per the latest announcement as on 26th June 2017, The government has said provision relating to tax deducted at source and tax collected at source will kick in only from a date that will be notified later, giving relief to Ecommerce players who will not have to collect tax on payments to vendors from July 1st post goods and services taxroll out.

Lot of speculations and rumors are floating around but we would like to update on following points as well which will be useful for eCommerce sellers.

No threshold for GST registration:

Government has specified a threshold limit for all the businesses. A business is liable to register under Goods and Services Tax once such threshold limit is breached. However, such a limit is not applicable in case of eCommerce sellers. All the businesses carrying out eCommerce activity are required to get registered under GST irrespective of their turnover.

Also Read: The Impact of GST on eCommerce Sector

No Benefit under Composition Scheme:

Under this scheme, businesses are required to file returns quarterly instead of monthly and pay taxes at nominal rates up to 2%. However GST law has explicitly excluded eCommerce businesses from this scheme.

Need of the hour is to be aware of the changes that are going to come. Also one should now start planning its transition strategy for GST regime. Some of the key points that should be kept in mind are:

• Get your GST enrollment done on time.
• Plan your logistics and warehousing requirement carefully.
• Adopt technologies which will enable your business to be GST compliant.

For any other clarifications on GST for e-commerce, please feel free to write back to us and we will reply at the earliest. Or Contact Us.

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Best Regards,

Team FinPlus