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E-Commerce is a new way to do business and one of the most valuable ones right now. A survey found that almost 80% of internet users have bought something from one of these E-Commerce stores. But it has a complicated taxation system. For example, GST Registration for E-Commerce makes a lot of people confused. So, in this article, we’ll talk about GST Registration for E-Commerce so you can easily grow your own online business.
What is E-Commerce?
E-commerce is just selling goods and services, even digital ones, on the Internet. For example, on Amazon and Flipkart, you can sell physical books or audiobooks online.
E-Commerce is run by digital platforms and E-Commerce Operators. This could include websites or apps in general.
Understand About E-Commerce Operators
E-Commerce Operators are just the places where buyers and sellers can meet. In other words, E-Commerce operators are the companies that run or own mobile apps or websites for online businesses.
E-Commerce Operators include Amazon, Flipkart, SnapDeal, Uber, Zomato, etc.
These E-Commerce Operators also make a lot of money, so the government has set up special rules and laws for them to follow.
So, almost every E-Commerce platform also requires sellers to have an E-Commerce GST Registration.
What is GST Registration?
GST stands for “Goods and Services Tax.” It is an indirect tax that sellers have to collect for the government. To do this, sellers need to register for GST and get a GSTIN number.
It was made so that the effects of other indirect taxes would build up.
So, GST has replaced indirect taxes like excise duty, VAT, services tax, and others.
Also, everything is done online. So, it speeds up the whole process, from signing up to filing a tax return.
All the information you need about GST
GST Registration for E-Commerce
As we all know, every seller who makes more than Rs. 20 Lakhs must sign up for GST. But this is not true for people who sell on E-Commerce Platforms.
According to government rules, sellers on any E-Commerce platform must have GST Registration, even if their sales are below a certain limit.
It just means that you need a GST Registration in order to sell your goods and services on E-Commerce stores. If you don’t, you won’t be able to buy or sell things on an online market.
When services are sold on E-Commerce platforms, the E-Commerce operator must collect GST on behalf of the seller.
So, GST Registration is an important part of a business that operates online.
Important: E-commerce operators must also be registered for GST and file GST Returns.
GST Return Filing for E-Commerce Operators after getting GST Registration
E-Commerce sellers and operators both have to file GST Returns. But the forms to fill out for each are different.
GSTR-8 has to be filled out by E-Commerce Operators. All online businesses that take out TCS have to fill out a return (Tax Collected at Source).
GSTR8 is important because it shows the sales made through the e-commerce platform as well as the TCS collected on those goods. Also, it lets suppliers get a credit for the Tax Collected at Source they paid.
The GSTR8 must be filed every month on the 10th.
Important: If the GSTR8 is not filed on time, a fine of Rs 100 under CGST (Central Goods and Service Tax) and Rs 100 under SGST (State Goods and Service Tax) will be charged every day. Also, as a penalty for being late, interest at 18% per year must be paid on top of the late fees.
What needs to be mentioned in GSTR-8 after getting GST Registration for E-Commerce?
Under GSTR-8, there are nine different parts. Here’s what they are.
GSTIN
Before filing GSTR-8, you must first have a GSTIN. E-Commerce Operators, on the other hand, also use provisional id.
The legal name of the Taxpayer
Second, business entities must also give their legal name. Most of the time, it is filed automatically through the GST Portal when you log in.
Details of the goods sold made an E-Commerce Platform
In this section, E-Commerce operators need to give details about the total value of the goods sold on the platform. Also, they have to give information about the goods that buyers have sent back. So, the amount of TCS owed is equal to the difference between the amount of goods sold and the amount of goods returned.
Corrections in the previous month’s return
Use this section to change the information on the return from the month before.
Information about Interest to be paid
In this section, the details of the missed fines and the interest that needs to be paid on them will be listed.
Taxable Amount and Previously Paid tax
Then there’s the tax part. It is made up of the CGST, the SGST, and the IGST. Here, the taxpayers have to write in how much tax they owe and how much tax they have already paid.
Refunds Issued from Electronic Cash Ledger
If a taxpayer has paid off all of their TCS Liability, they can get an input tax credit. If it’s already been done, you have to say so here.
Debit Entries in Cash Ledger
Lastly, the amount of tax received at the source will go to Part C of the taxpayer’s GSTR-2A when they file their GSTR-8.
Can we revise GSTR-8 after getting GST Registration?
GSTR-8 must be filled out with the utmost care. Because it can’t be changed until next month, that’s why. In other words, you can only fix the mistakes on the GSTR-8 Return for the following month. So, the best way to file GSTR-8 is by having a professional do it.
GST Return for E-Commerce Sellers after GST Registration
E-Commerce sellers have to fill out four main types of GST returns. Here’s what they are.
GSTR-1
It is a monthly report that E-Commerce sellers have to fill out to show what they sold or what they sent out. Every month, GSTR-1 must be filed by the 10th.
GSTR-2
This return shows what goods or services came into the country. Also, when E-Commerce operators file GSTR-2, they can use the input tax credit. Every month, GSTR-2 must be filed by the 15th.
GSTR-3
It is the form of the above two returns put together. It shows the specifics of how an E-Commerce Seller with GST Registration pays and collects tax. Every month, GSTR-3 must be filed by the 20th.
GSTR-9
Under GST, every business that is registered must fill out this return. It is a yearly report that both the seller and the person running the E-Commerce business have to fill out.
In conclusion, getting GST Registration and filing GST Return for E-Commerce is an important part of making a business that can make money.
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