GST Registration For Ecommerce Business

ECommerce sector are still one of the fasted growing sector in India. Previously on the Ecommerce business there are state to state VAT/CST are imposed on the seller but on the Ecommerce platform like Flipkart or Amazon or Paytm etc, they are charging the service tax as a service provider. But now due to GST from 1st april things are the changes, so Let’s learn about the GST Registration for Ecommerce Business.

mainly there are the 2 type of the ecommerce model  i.e is Marketplace or Dropshipping and Reseller model. On the reseller model vat/cst are changes into the GST but in the drop shipping or marketplace model you have to charge the service tax as GST from the seller + TDS/TCS 1% also from the seller.

This article will deal with the deductions of TDS (Tax Deduction at source) or TCS (Tax Collected at Source) Under GST regime. The GST regime requires collecting and depositing of tax at the rate of 1% from each transaction. Every dealer selling goods/ services online would get the payment after deduction of 1% tax.

All the persons dealing in the sale of goods or services online will need to get register under the GST regime even if their turnover is less than 20 Lakh.

TDS- who will deduct?

Here the question arises who will deduct the TDS under GST. TDS is to be deducted at the rate of 1% on the payments made to the suppliers of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds Rs. 2,50,000. The entities that are required to deduct TDS are:

  1. A Central or State Government department or establishment
  2. Local authorities
  3. Government agencies
  4. Persons as notified by the Central or a State Government on the recommendations of the Council

Registration process

1. The entity who is required to deduct TDS or collect TCS will electronically submit an application in the form GST REG-07 for registration which will be duly signed or verified through Electronic Verification code.

GST For Ecommerce Business

2. After verification proper officer will grant registration and issue certificate of registration in FORM GST REG-06 within in 3 working days from the date of submission of application.

GST Registration For Ecommerce Business

Cancellation of Registration

  1. By inquiry or through proceedings it is ascertained that the person is no longer liable to deduct TDS then the proper officer will cancel the registration. It will be communicated to him through From GST REG-8 electronically.
  2. The procedure followed is same as of the normal taxpayers.

Registration for People Supplying Online Information from Outside India

Online information and database access or retrieval services [OIDAR] means services whose delivery is mediated through the internet. The supply is essentially automated involving minimal human intervention and impossible without information technology. On following it will apply:

These are a few examples of electronic services from the service tax list which will be considered as OIDAR-

  • Advertising on the internet
  • Providing cloud services (Google Drive)
  • Provision of e-books, movie, music, software and other intangibles via the internet (Hotstar, Amazon Prime Video)
  • Providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;
  • Online gaming (Steam)
  • Web-based services providing trade statistics, legal and financial data, matrimonial services, social networking sites etc.

Non-OIDAR services

  • Supplies of goods, where the order and processing is done electronically
  • Supplies of physical books, newsletters, newspapers or journals
  • Services of lawyers and financial consultants who advise clients through email
  • Booking services or tickets to entertainment events, hotel accommodation or car hire
  • Educational or professional courses, where the content is delivered by a teacher over the internet
  • Offline physical repair services of computer equipment
  • Repair of software, or of hardware, through the internet, from a remote location
  • Advertising services in newspapers, on posters and on television
  • Internet backbone services and internet access services (BSNL broadband)

It has also been clarified that using the internet just to communicate or facilitate outcome of service need does not always mean that a business is providing OIDAR services.

So Guys hope you like above article regarding the GST Registration for all type of the Ecommerce Business.