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If you remember these 5 aphorisms then GST on ecom would be a cake walk
If you remember these 5 aphorisms then GST on ecom would be a cake walk
In the US, buyers consciously prefer buying online...why? because ecom operators have been left off the tax hook... which saves sales tax to them... But Indian Govt has consciously chosen to not toe the American line... and taxed the ECOs... and more or less brought them in line with brick and mortar sellers. So, online sellers (ECOs) you have no reason to open the bubbly... but the 5 aphorisms... marked below...should help you in GST compliance.
My dear sharp minded ECOs,
As a child, I exasperated my mother with strings of never-ending questions.
And now at this point of my life, the long rigmarole of GST Law is exasperating me...
Before you shoot me with one, I shed my secretive demeanour and tell you that -
ECO is an acronymm for Electronic Commerce Operator;
And now... ECO here I tell you 5 aphorisms - basic truths of the GST law, that you should remember -
Aphorism # 1 - As a general rule, all the ECO have to get compulsorily registered under the GST Act... but... if the products, ECO - that - you sell online, are your own products (or your principal's products)... OR.. you don't collect payment for it... - then you don't have to register as an ECO...
Aphorism # 2 - Once you get registered as an ECO... and start selling online... then you have to compulsorily deduct (collect) GST on all ...on products that you don't own... @ 1% (.5% for CGST & .5% for SGST)
- But... here is a twist...
- In 2 cases ... If services - 1. passenger transportation services provided by a radio-taxi, motorcab, maxicab motor cycle; and 2. accommodation services in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes... are provided through your platform then... you should charge GST @normal rates (and not collect any GST)
- In 3 cases... 1. zero rated supplies (ie supplies exported or supplies made to SEZ) 2. nil rated supplies and 3. exempt supplies... are provided through you then don't collect any GST...
Aphorism # 3 - Now... significant 10 days...
- You should deposit, whatever you have collected as GST (ie @1%), in the government account - with in 10 days from the month end... in which you collect the payment...
- You should furnish GSTR 8 (electronically) with in 10 days from the month end (of collection) ... GSTR 8 is the statement which every ECO has to submit every month... In GSTR 8... ECO mentions total supplies (outward) made through it... total supplies returned through it... details of GST collected through it...
Aphorism # 4 - ECOs - many a times... - you would like to store the products of different suppliers in your own warehouse... then ... quickly...
- enter into an agreement with them and
- ask them to mention your warehouse as a "place of business" for them...
Don't worry, multiple person can register the same place as their place of business... so its good...This would help you, as this would require them to maintain account of their goods placed (stored) at your warehouse...
Aphorism # 5 - as a clarification... let me tell you that...
- travel agents doing online booking... are ECO... and should collect GST @ 1%...
- If ECO - if you do not provide an invoicing solution to your suppliers.. but payments are made through you, then you should collect GST @ 1% ...
- If more than 2 ECO are involved, then both of them have to collect GST...
ECOs remembering above 5 aphorisms would easily drift you through the scrub of GST... and you will not feel to have been left in lurch...
But, I can not leave you like this... how can I leave you without quizzing you on what you have to remember...
So here is the quiz....
Thanks,
Wishing you a very good luck....
