E-commerce business growing faster day by day. Amazon, Flipkart, Uber etc and many more are entering into the ecommerce business. As you know when a customer place a order through portal, the E-commerce companies pass these order to actual supplier of goods and services then supplier supply the goods and services to a person that is unknown to him.
In this post we have tried to cover the effect of GST on E-commerce and it effects on your business, if you are running a business of E-commerce then find the answer to your questions.
What is the Tax implication on E-commerce operator BEFORE GST ?
Earlier the E-commerce companies were not liable to VAT/CST as they were not selling goods so their services were brought under the service tax.
What is the Tax implication on E-commerce operator AFTER GST ?
- Who will be considered as a Ecommerce operator?
“Electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;
“Electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce;
- Is it mandatory for E-commerce operator to get GST REGISTRATION?
Yes , there is no threshold limit for E-commerce operator and they are liable to get register themselves irrespective of the value of supply made by them.
- Is there any tax deduction liabilities on Ecommerce operator?
Now under the GST they are liable to deduct TCS of supplier @1% and E-commerce company the shall paid to the government within 10 days from the end of the month in which such collection is made. The actual supplier can take benefit of this 1% TCS.
- Date of filling the statement with the government
Further E-commerce operator is required to submit statement to the government within 10 days after the end of such calendar month.
- Is there any annual compliance on E-commerce operator?
Ecommerce operator is required to file annual statement before 31st December of the following financial year.
- What if ecommerce operator does not have any physical presence in india? a. Where an E-commerce operator does not have a physical presence in the taxable territory, any person representing such ecommerce operator for any purpose in the taxable territory shall be liable to pay tax. b. Where an E-commerce operator does not have a physical presence in the taxable territory and also does not have any representative in the said territory, such E-commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such shall be liable to pay tax.
Are you ready for GST ?
Businessmen is really worry about GST. We a team of professionals assist you in making your business simplify. Over 1000 business use setmybiz daily to implement GST in their business.