Impact of GST on E-Commerce Seller

author portrait

Sakshi Shah

E-Commerce Operator
E-Commerce Supplier
GST
GSTR-1
GSTR-2A
GSTR-3B
TCS

As per the GST Act, an Electronic Commerce Seller i.e. E-Commerce Seller is a person who makes the supply of goods or services through a digital or electronic platform owned and managed by an e-commerce operator. The impact of GST on e-commerce seller is summarised in the table below:

Provision Impact
Conditions 1.Person sell goods or services through the e-commerce platform owned and managed by e-commerce operator
2. Payment on sales is collected by the e-commerce operator
Registration 1. E-commerce seller of goods – Compulsory Registration irrespective of the turnover
2. E-commerce seller of services – Compulsory registration only if the turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
Taxability Liable to charge GST on the goods or services sold to the customers at the applicable GST Rate
Tax Collected at Source (TCS) Receives payment from the e-commerce operator after deduction of TCS @1% on the value of goods or services sold through their platform
TCS Rate 1. Inter-state supplies – IGST @ 1%
2. Intra-state supplies – CGST @ 0.5% and SGST @ 0.5%
TCS Credit Can claim credit of TCS collected by the e-commerce operator by filing GST Return on the GST Portal
GST Return 1. GSTR-2A – auto-populated return that reflects the TCS credit. The TCS credit is added to the e-cash ledger on the GST Portal
2. GSTR-3B – file on or before 20th of next month for payment of GST charged on sales
3. GSTR-1 – file monthly or quarterly based on the turnover of sales
4. GSTR-9 – file on or before 31st December of the next financial year
What is TCS under GST?
Read about Tax Collected at Source, applicability of TCS and TCS rates
Read More
What is TCS under GST?
Read about Tax Collected at Source, applicability of TCS and TCS rates
Read More

FAQs

Is it mandatory for e-commerce seller to obtain registration?

* E-commerce seller of goods – Compulsory registration irrespective of turnover
* E-commerce seller of services – Compulsory registration only if turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)
[Notification no. 65/2017 dated 15.11.17]

Can an e-commerce seller avail the benefit of Composition Scheme under GST?

No. E-commerce seller cannot avail the benefit of Composition Scheme under GST. They must register as regular taxpayers, collect and deposit GST, file GSTR-3B and GSTR-1 on GST Portal.

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