What is the impact of GST on an E-Commerce Supplier?
As per the GST Act, an Electronic Commerce Supplier i.e. E-Commerce Supplier 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 supplier is summarised in the table below:
|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 supplier of goods – Compulsory Registration irrespective of the turnover|
2. E-commerce supplier 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
1. Is it mandatory for e-commerce supplier to obtain registration?
|Description||Whether registration required?|
|E-commerce supplier of goods||Compulsory registration irrespective of turnover|
|E-commerce supplier of services||Compulsory registration only if the turnover exceeds Rs.20 lacs (Rs.10 lacs for special category states)|
[Notification no. 65/2017 dated 15.11.17]