What is the tax for e-commerce in India?
E-commerce sellers are liable to pay GST, while TDS under GST is cut before they receive their dues from the aggregator (Eg. Flipkart, Amazon) through which they sell.
What is e-commerce as per GST rules?
As per the Model GST Law, e-commerce means receipt or supply of goods or/and services or transmission of data or funds over an electronic network.
Who needs GST compliance for e-commerce?
GST compliance for e-commerce is required regardless of the turnover, unlike for brick-and-mortar businesses. All traders selling goods and services online need to register for GST.
What is the rate of TDS for e-commerce sellers?
E-commerce aggregators (Amazon, Flipkart, etc.) deduct a 1% tax on every transaction. Sellers receive payments after deduction of this tax.
What is the purpose of TDS under GST for e-commerce?
The objective of TDS under GST for e-commerce is to increase compliance amongst e-commerce dealers. Aggregators need to deposit the tax deducted by the 10th of the next month. Another objective is to check tax evasion as TDS deductions leave behind a trail of transactions which become more comfortable to track for authorities.
How does TDS increase GST compliance for e-commerce sellers?
- Sellers who aren’t registered for GST cannot claim credit of TDS
- TDS under GST for e-commerce leaves behind a trail of transactions, which can then be easily traced by authorities.
How can e-commerce sellers claim credit of TDS?
E-commerce sellers can claim credit of TDS on the official GST portal via the ‘TDS and TCS credit received’ Form.
When can you file the ‘TDS and TCS credit received’ Form?
There is no mandatory date, but you can file it only once in a month.
What is the rate of GST tax for e-commerce in India?
The GST tax slabs applicable to various goods and services offline will be suitable for online sales too.
How does GST tax for e-commerce in India work?
Since 2017, GST has replaced all the other multiple taxes from before. GST is a destination-based tax. Everything depends on the place of supply i.e. tax will be deducted at the final place of supply.
What are SGST, CGST, and IGST?
State GST, Central GST, and Integrated GST are the different types of GST charged depending on the type of transaction. SGST and CGST are for intra-state sales and IGST is for inter-state sales and imports.
Comments