In Today’s Article at Myonlineca, We will Discuss GST Return for E-commerce Sellers and we will provide you with full Details on GST Return Filings for Ecommerce Sellers.
After registering with GST, you have to fill the GST return. You have to face many types of return forms throughout the year. But, it is not necessary that you have to fill all forms. Some forms are for general GST Registered Taxpayers, so for certain category taxpayers. Before you fill the GST Return, it is very important for you to know which forms you should fill. In this episode of the GST, we are introducing you to GST Return Forms. We will know what are the GST Return Forms and what type of business is to fill the Return Form.
What is GST?
Goods and service tax or GST is a comprehensive, multi-level, destination-based tax that will be levied on each value added.To understand this, we have to understand the words under this definition. Let’s start with the word ‘multi-level’. Any object passes through many steps from construction to final consumption. The first step is to buy raw materials. The second stage is produced or produced. Then, there is a provision for storing goods or putting them in the warehouse. After this, the product comes to the retailer or retailer. And in the last step, the retailer sells the final goods to you or to the ultimate consumer.
What is GST Return Form?
Each month a deal of your business is recorded in this month. GST Returns is to give details of things written below.
- Which goods, how much, when and how many have sold in the month?
- Which goods, how much, when and how many have bought?
- How much GST have you collected from the customer and given to the government?
- How much of your GST tax have you paid on your purchases?
- How much is GST tax liability saving you after matching the two?
- Or how much is the GST tax going beyond your government?
Information about all things above you give to the government through Return Forms. After completion of the month of business, you go to work through different Return Forms in many parts. The same system works in the case of services.
A provision regarding e-commerce in GST
Electronic commerce or e-commerce has changed the way business has been done in India. Presently, e-commerce industry in India is facing various taxes on Lavi. Each state has its own rules and taxes on the e-commerce industry. The lack of clarity of tax behavior on various types of e-commerce actions, and the result of new aspects such as e-wallets and cashbacks, is the disorganized environment for the industry.E-commerce firms look forward to better clarity and withdrawal of state-specific rules and levied by the implementation of GST. The draft model of GST law recognizes specific rules for the e-commerce industry. In this blog, we will look at specific provisions in respect of e-commerce in GST.
E-commerce operator and suppliers on e-commerce platforms
Let’s look at the requirements of the supplier and e-commerce operator on the platform of e-commerce under the GST, in detail.
GST Return for Ecommerce Sellers
The e-commerce operator is someone who owns, manages, or manages the digital or electronic facility or electronic commerce platform. The requirements which are required by e-commerce operator under GST are –
- Compulsory registration
All e-commerce operators must be registered under the GST. This means that without considering the turnover, it must be registered under the GST.
- Tax payments to be done by e-commerce operator on informed services
Some service categories can be notified, on whose supply, taxes should be paid by e-commerce operator, not by the supplier. In this regard, If the e-commerce operator does not have an office in the state, any person representing the e-commerce operator for any work in the state will be liable to pay the tax.If the e-commerce operator does not have an office in the state and there is no representative in the state, the e-commerce operator should appoint a person to pay tax in the state, and this person will be liable for the payment of the tax.
- The e-commerce operator will have to recover the tax from the source
Every e-commerce operator has been charged by their platform for 2% tax on the paid supply, where in respect of such supply, the return should be charged by the operator.The actual cost of tax supply = The value of paid supply made by all the registered people through the operator, on which the tax has been paid by the operator (-) the value of the paid supply returned to the suppliers
- Payment and Tax Payment Process
On the 10th of the month, the e-commerce operator will have to submit the form GSTR8, which includes all the details of the outward supply, including the refund, which was done last month through the platform. In the form GSTR8, the invoice-wise details of supply to the registered persons and the accumulated value of supply of unregistered persons should be included. The e-commerce operator will also have to pay tax by the suppliers.ALso Monthly Details of outward sales by a seller in FORM GSTR-1 by the 10th of next month, Monthly Details of purchase made by the seller in FORM GSTR-2 by the 15th of next month.Monthly Filing of return along with the payment of an amount of tax in FORM GSTR-3B by the 20th of next month and Annual Filing of Return in FORM GSTR-9 by 31st December of next financial year needs to be filled by E-commerce Business.
On 21st of the month, if there is any difference between the supply of e-commerce operator and the supply reported by the supplier on the platform, then the form is made available in GST-ITC-1. This difference should be modified in return, for the month in which it has been notified. In the above example, Fast Dulz Form presents GSTR-8, for a supply of October on November 10, ’17. If there is a difference in Form GST-ICT-1 on November 21, 17, then it should be revised in the return of November 17, which is to be filed on December 10, 17.
Suppliers on e-commerce platforms
Suppliers who are on e-commerce platform are those who supply goods or services on the e-commerce platform. The requirements which are required by the supplier on e-commerce platform under GST are –
- Compulsory registration
All the suppliers on the e-commerce platform must be registered under the GST. Even if e-commerce operators whose gross turnover is not above the threshold, it is mandatory for them to register under GST.
- Incompetence for composition scheme
The person who supplies goods or services through e-commerce operator does not become eligible for registration under the composition scheme, even if the gross turnover of the person is not above 50 lakh, he has the option of becoming a composing taxpayer. Not there.
- Payment Process
On the e-commerce platform, the supplier will have to follow the GST payment process applicable to the dealer. In addition, the following details are required to be provided in the context of the supply that is being supplied through e-commerce platform –On the 10th of the month, the supplier will have to submit the form GSTR-1, from which details of external supply made through e-commerce platform will be. In the form GSTR8, the invoices of supply to the registered persons should include the total value of the supply and the supply of unregistered persons. The e-commerce operator will also have to pay tax by charging the supplier.On 11th of the month, the supplier will be provided GSTR-2 Form. The total amount of the last month collected by the e-commerce operator on the basis of the GSSR-8 form filed by the e-commerce operator will be auto-populated.
On the 15th of the month, the supplier will have to submit the form GSTR-2, in which details of recovery tax e-commerce operator can be accepted or modified. On the basis of tax recovered tax, the supplier will be credited in the electronic cash laser, which will be set-off, unlike tax liability.On 21st of the month, the supplier will be provided GST TITC-1. The difference between the supply and submission of the report reported by the e-commerce operator will be shown. This difference should be modified in return, for the month in which it has been notified. If the value of supply supplied by the operator is not more than the value presented by the supplier, this difference in amount will be added to the supplier’s tax liability next month, including interest.In the above example, Rakesh Pvt. Ltd The form presents GSTR1, for the supply of October 10, to October 17. If there is a difference in Form GST – ICT-1 on November 21, 17, then it should be revised on November 17, which is to be filed on December 10, 17.
I hope you like this article about GST Return for E-commerce Sellers. still, if you are confused you can check out our website to File GST Return for E-commerce Sellers.