GST DUNIYA. Part 11 – (Taxation of E-Commerce Business)

GST DUNIYA. Part 11 – (Taxation of E-Commerce Business)

GST on E commerce Sellers

Hope you had read the previous parts of the GST Duniya series, if not, then read it from here:

Part 1  Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 PartPart 9 Part 10

First of all,lets understand the meaning of E commerce sellers;:

E-commerce sellers means sellers selling their products to customers via internet. E commerce business is growing rapidly in modern world i.e. world of technology.

E commerce websites are gaining trust of customers and it is normal phenomenon now a days to shop online. Examples of E commerce sellers are sellers of Amazon, Flipkart, snapdeal, E-bay, Shopclues ,etc. As we all know that government has set a threshold limit of Rs 20 lakhs,which means that sellers selling goods upto Rs 20 lakhs are not required to register under GST(Limit is Rs 10 lakhs for northern eastern states).

The most important point to be noted is that this threshold limit is not applicable for e-Commerce sellers.

So,if you are indulge in selling online, so take care that you have to take GSTIN as you have to charge GST and pay it to govt. It means even if turnover of ecommerce sellers are upto Rs 20 lakhs, they have to register under GST.

Now next point is related to composition scheme. For small scale traders, Government has introduced a composition scheme which means sellers having turnover upto Rs 75 lakhs and having intra state supply can take benefit of composition scheme under. There are several benefits of this scheme which we have already discussed earlier like tax rate is nominal for composite suppliers, they are not required to maintain detailed records,they are required to submit quarterly return instead of monthly returns.

But the point to be noted is that e commerce sellers can not avail composition scheme. They are not eligible for this scheme. So, sellers selling online must take care that do not think to register themselves under composition scheme.

Now the next important point under GST regime for E commerce operators are Under GST regime, marketplace operators are mandatorily required to deduct tax percentage as GST liability of seller and deposit it to government.

As in above line, we talk about Marketplace operators,so common query arise in our mind is who is marketplace ooperator and who is market place seller.So lets understand these terms by an example like Snapdeal is an e commerce website which has tie up with different sellers.

These sellers upload their products on Snapdeal and then customers purchase these products from snapdeal and pay to snpadeal account.Now after sales,snapdeal transfers the amount to sellers’ account after deducting its commission. In this process,snapdealis marketplace operator and sellers are marketplace seller.So under GST regime, Marketplace operators are required to deduct specified amount of percentage as GST payable by seller while transferring amount to sellers’ account. This is also known as TAX COLLECTION AT SOURCE.

After deducting such amount, marketpace operator will pay it to government. Marketplace seller shall file monthly return in which he will claim credit of this TCS amount.

In the above manner, GST levies on e commerce sellers. It is advisable for e commerce sellers to take care of all the above points. Here PART 11 ends. For further knowledge on GST, stay connected with us.

In case of any query related to above article, the questions can be asked by commenting in the comment box or the author can be contacted personally at or 

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