Last updated on April 23rd, 2021
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 |
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.
Hey @HarshitShah
Goods/sectors that are out of the GST ambit include alcohol and specified petroleum products like petroleum crude, high-speed diesel, motor spirit, aviation turbine fuel and natural gas. Alcohol for human consumption continues to attract state excise duty and VAT. Tobacco and tobacco-based products attract both excise duty and GST. Taxes such as stamp duty, toll tax, road tax, electricity duty etc. are not part of GST.
Hope this helps!
Hey @HarishMehta
Customs duty and cess as applicable along with IGST+ GST compensation cess. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.
Hope this helps!