The e-commerce business structure has been booming in India and is anticipated to grow about 6-10 times over the span of a few years from now. The major market functions like buying and selling of goods and services, transferring funds and data over the electronic network, especially the internet, forms the e-commerce business. Looking at this rapid growth rate and complexity of the tax structure, Government has provided provisions for them under Goods and Service Tax (GST) law. There are mainly two entities that are considered as sellers in e-commerce.
- E-commerce operator: These are the entities that own and manage the digital platform for selling the products and services such as Amazon, Flipkart, etc. They are often referred to as marketplace and are defined u/s 2(45) of CGST Act, 2017.
- Suppliers on E-commerce platform: They are the ones who sell their products and services on the e-commerce platform. They are defined u/s 2(44) of CGST Act, 2017.
Unlike regular businesses, there is no threshold exemption for the e-commerce suppliers and operators. These e-commerce entities come under the GST compliance irrespective of the value of supply and hence are required to file GST return online. GST return form includes the details such as purchases, sales, output GST and Input Tax Credit (ITC) which are to be submitted on monthly, quarterly or annual basis.
GST Return filing for e-commerce platforms:
There are several returns to be filed under GST for e-commerce operators and suppliers. Mentioned below is the list of forms which is required to be submitted along with the date of submission:
||DATE OF SUBMISSION
|| 10th of every month
||15th of every month
||20th of every month
||10th of every month
||31st December of next financial year
All the GST returns are filed for different purpose and details on or before the due dates declared.
- The e-commerce sellers have to file GSTR1 which includes the details of outward supplies of taxable goods and services made by them on 10th of next month. The respective buyers can view the sales made by sellers in GSTR 2A and can modify it to file their own GSTR 2 form. Any modification made by the buyer can be viewed by sellers in GSTR 1A.
- GSTR 2 which consists of the details of inward supplies (purchases) of taxable goods and services on the 15th of next month. The filing of GSTR 2 makes them eligible to avail Input Tax Credit wherein the taxpayer can claim the refund of tax on purchases or deduct that much amount from the tax payable on outward supplies.
- The seller has to generate GSTR 3 online and is to be submitted before20th of the succeeding month. GSTR 3 can be generated once the inward and outward supply details are finalized along with the amount of tax payment. It is divided into two parts A and B. GSTR 3B is furnished with provisional returns for the month which includes tax liabilities, interest, penalty, refund claimed.
- Filing of GSTR 8 that is additionally required and mandatory for all the e-commerce sellers registered under Goods and Service Tax. This form includes the details regarding the outward supplies of goods and services and collection of the Tax Collected at Source (TCS) from e-commerce sellers and their GSTIN. It is to be submitted on the 10th of the next month and the information is available to respective sellers for their GSTR 2 filing. TCS is required to be collected by all the online marketplaces. It is fixed at 1% of the net value of supplies made when making payments to sellers on the online portals. It is levied by the e-commerce operator and is deposited to the Government. TCS is applicable only when the payment is directed to thorough e-Commerce Aggregators.
- Lastly, all the e-commerce operators and sellers registered under GST have to file GSTR 9B in the upcoming financial year. It is the form for annual return filing and is to be submitted on 31st December of the next financial year.
It is necessary for all the e-commerce operators and suppliers to register under GST and file GST return online. Since e-commerce is different from other forms of business the return filing requirements are also rigid as compared to other business. But, for e-commerce sellers the GST return filing comes with its own set of benefits.
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