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Asked by pratul on :Mar. 21, 2018

Hello, I am looking to start a dropshipping busin…

Hello, I am looking to start a dropshipping business from my own website. Once the customer places …

Hello, I am looking to start a dropshipping business from my own website. Once the customer places an order from my website I forward that order to my suppliers which is outside India and it ships it to the customer. My target customers are from outside India. So product does not enter India. What about GST? Do I pay GST on my turnover only if it crosses 20 lakh? Or how does it work? Since I am marketing and listing my products on my own website i think it's not an ecommerce marketplace defined by GST law?

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Jeeba Aug. 11, 2018

Since your business is in the nature of intermediator, you have to register your dropshipping business under GST compulsorily. Therefore, you have to register business irrespective of the turnover.

Income derived as a commission will be taxed at the rate of 18% GST.

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