GST E Commerce, what does it exactly mean?
GST e commerceE-commerce is the business done over an internet. E-Commerce is done in many streams and deals with many competitions as well. E-commerce has changed many phases of business. In present trend, there are many taxes imposed over an E-Commerce sale and many restrictions that also varies between different states. But the tax structure when its coming to E-commerce in India has never been clear, there was always a chaos between the taxes with respect to E-Commerce business in India. But GST is going to change the trends.
With the rules of GST e commerce, the taxes will be clearly understood by the firms as well as by the suppliers.
Basically in every e commerce business in India there are two parties that do business online one is the firm and the other is the Supplier. So, What is the tax structure for these two? will it be same or different? These are the often questions raised when we talk about it.
Firstly lets talk about the firm: The firm is the operating source where the business is done. It has to manage all the transactions happening in the platform. The GST E commerce tax structure for these are:
They have to register themselves under GST. It is mandatory for them to register without considering the turnover or type of business they do. The person who is owning the firm has to be liable to pay tax when notified. If the firm is not registered in the state, then the person has to pay tax who is owning the company and if also the person is not frm a particular state the he has to appoint someone from that state to pay tax. And also Every e-commerce operator should collect tax @ 1% on the net value of taxable supplies made through their pathway, where the consideration, with respect to such supplies, has to be collected by the firm representative.
The tax payment process of the firm:
- On 10th of every month the firm representative has to furnish GSTR-8 wherein he has to fill the details of the outward supplies with their invoices. that is, invoice-wise details of supplies to registered taxable persons and aggregate value of supplies to unregistered persons must be provided. And he has to pay tax that he has collected from the suppliers.
- Then on 21st any inconsistency with the supplies is reported and made available in Form GST ITC-1. Then further it has to be communicated and rectified.
Secondly we have the Suppliers: The Suppliers also likely the firm has to get themselves registered under GST. A goods and service supplier who supplies on an E-Commerce platform doesn’t have a provision of Composition scheme.
The tax payment process of the suppliers:
- On 10th of a month Supplier has to fill GSTR-1 with their Outward Supplies. Likely as the above, invoice-wise details of supplies to registered taxable persons and aggregate value of supplies to unregistered persons made through the e- commerce platform must be provided.
- Immediately on 11th form GSTR-2A will be made available which will be auto-filled based on form GSTR-8 that is furnished by the firm.
- On 15th of a month, a supplier has to furnish Form GSTR-2, in which the details of tax collected by the e-commerce operator will be accepted or modified. That will be credited to the supplier’s electronic cash ledger on provisional basis, which can be set-off against the tax liability.
- On 21st of a month, Form GST ITC-1. If any inconsistency or difference will be shown by the E-Commerce firm. It has to be communicated and rectified otherwise the difference amount with interest will be taken as tax liability for the coming month.
You will be easily filling all the above irrespective of being a Supplier or a firm representative with the help of Autom-axis.com. know more at automaxis