Implementation of GST affecting the E-Commerce Sellers
Gunjan Singh / 2020-03-06 11:43:38

As per the Goods and Services Tax Act, GST will be mandatory for all the sellers who are indulged in the E-commerce business. According to the GST regime, under section 24, it is clearly explained that the sellers will not able to proceed with the sales without being registered under GST. 

E-commerce has extended over world-wide in the last few years and hence, the sellers are required to be strict regarding the GST. However, we have discussed the several impacts that came into effect after the implementation of GST on the E-commerce sellers below. 

Is GST Registration a requisite for the E-Commerce Seller?

Yes, the e-commerce sellers need to register themselves under GST. The Government has announced that the Sellers who are not registered under GST will not able to sell any single product. Despite the eligibility for the annual turnover, the sellers cannot proceed with the sales. To make it more clear, we can say that the Government has made the registration compulsory.

The government will also not consider the threshold limit. It does not matter whether the annual turnover of any E-commerce business is eligible for the registration or not, they will have to register under GST. Without a GST Registration and GST Certificate, any seller cannot proceed with his works through E-commerce Business.

E-Commerce seller cannot choose the composition scheme

As per the GST Government, the E-commerce sellers cannot choose to be a composite dealer as they won’t be considered as an eligible candidate to be registered. In case the annual turnover of the persons is not going to exceed Rs.1 crore, the person will be termed as a composite dealer. However, if an E-commerce business’ annual turnover is less than Rs.1 crore, the seller will not be considered as an eligible candidate to choose to be a composite taxpayer. 

GST Return Filings for the E-commerce Sellers

The E-commerce Sellers have to file the same GST Returns as the normal taxpayers do. As the regular sellers registered under GST files the returns such as GSTR 1, GSTR 2 and GSTR 3, the E-commerce sellers also perform the functions and files the returns accordingly. 

Furthermore, the E-commerce sellers will be notified with the precise details regarding the online transactions held in E-commerce. Also, the E-commerce sellers will be offered beneficial rights related to the Input tax credit.

E-Commerce sellers do not have Threshold Limitations

As per the Notification No.65/2017 under the Central Tax Act, the Dealers and businesses are free from GST registration if their annual sales or turnover is not more than Rs.20, 00,000.  All the business with a threshold limit is compulsorily needed to register under GST as per the Goods and Service Tax Act; the E-commerce sellers need not do the same. There is no such limitation for the E-commerce sellers. In short, GST Registration is mandatory for the sellers who are working for an E-Commerce site.

In case, any new E-commerce seller wants to register for GST. They can easily register sitting comfortably at their homes. Just visit the website of Legal Salaah, and apply for GST Registration Online. One can also avail of the service of GST Return Filing Online with the help of tax professionals of Legal Salaah.

GST increases the Credit facilities for the E-commerce Sellers

In the previous laws of taxes, the E-commerce sellers are not attentive regarding the absence of the Input Tax Credit on the service tax as well as VAT. However, after the emergence of the new GST regime, the E-Commerce sellers get the advantage to avail of the credit facilities. According to the new GST laws, the charge of the works done by the sellers is reduced and the E-commerce sellers will be offered some benefits on the Input Tax Credits.

Deduction in name of TCS (Tax collected at source)

Despite the benefits provided to the E-commerce sellers, they need to face some of the deductions too. The E-commerce seller has to pay 2% of their net value earned in the form of TCA (Tax Collected at source). The TCS amount is charged from the sellers and deposited under the government sectors. 

If you need any help on the GST Registration Online feel free to contact us +91-8766393412, Our Business adviser will clear your doubt.

Leave your comment