It is mandatory to register for all suppliers that make supply through e-commerce platforms under GST irrespective of their turnover threshold limit.
Sales on E-commerce platforms has been continuously increasing.
The reason behind this increase is the high level of customer satisfaction and cash on delivery, return policies etc.
GST Compliance for Supply Through E-commerce Platforms
1. Compulsory Registration
A regular supplier is not liable to register if the turnover is below 20 lakhs.
But there is no exemption limit of 20 lakh for suppliers that make the supply of goods or services through e-commerce.
2. Tax Deduction at Source
According to Section 52 of the CGST Act, 2017, Tax Collected at Source is to be collected by the E-commerce operator.
This TCS will be collected on the net value of taxable supplies made by the suppliers.
3. Non-eligibility for Composition Scheme
If a supplier sells goods/services through e-commerce operator, he is not eligible to register under composition scheme.
He/She cannot opt for composition scheme, even though his turnover is less than the threshold limit.
Input Tax Credit
Tax paid by the E-Commerce operator is treated as tax paid by the supplier. Hence, the tax credit is available to the supplier.
A supplier selling goods or services through an e-commerce will be treated as a regular taxpayer.
He has to file all the 4 monthly returns GSTR-1, GSTR-2, GSTR-3, GSTR-8 and one m annual return GSTR-9.
Let us under the return process in details.His GSTR-1 will be matched with the GSTR-8 files by E-commerce operator.
The supplier will file his GSTR-1 for all his outward supplies. Details of supplies made to the registered as well as the unregistered person will be provided in GSTR-1.
The last date to furnish GSTR-1 will be 10th of preceding month.
A supplier has to submit GSTR-2 on 15th of the preceding month. It contains the details of tax collected by the e-commerce operator which can be approved or modified if required.
This tax is credited to the supplier’s electronic ledger on the provisional basis. You can it set-off against the payable tax liability.
Auto-populated GST ITC-1 is furnished to the supplier for acceptance.
If there are any discrepancies in your supplies not matching with the supplies reported by e commerce operator will be visible in GST ITC-1.
Such discrepancies have to be rectified in the return for the month in which it is communicated.
It should be rectified timely. If the value reported by the operator is higher than reported by the supplier, the difference along with interest amount will be added to the tax liability of the supplier for the succeeding month.
Reported values by both operator and supplier will be matched.
If the value reported by the operator is higher than reported by the supplier, the difference along with interest amount will be added to the tax liability of the supplier for the succeeding month.
Central Board of Excise and Customs has issued a pdf of frequently asked question for e-commerce under gst.
You can download it from the link below:
You can also download other GST templates like GST Bill of Supply, GST Payment Voucher, and GST Export Invoice from here.
Additionally, you can also download other accounting templates like Petty Cash Book, Simple Cash Book, and Accounts Payable from here.
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