After GST roll out from 1st July 2017, everything has changed in India and it is Biggest reform in Indian History. Most of the businessman is still waiting for changes in GST rules and some of them are still on strike. Every business has affected in its way in GST but what is different for online sellers in GST? Let's see what has been changed for online Sellers in GST.
1. Must have GSTIN No.:
Before GST every person who has a pan card and saving account register himself/herself as an online seller on e-commerce marketplaces, but now you can not register yourself as a seller if you do not have GSTIN NO. Whatever your business size is if your business has a turnover of 1 crore or 1 lakh you have to get a GSTIN No.
2. No Composition Scheme:
If you want to sell online marketplaces and want to opt for composition scheme, sorry you could not. Either you can opt for composition scheme or be an online seller.
3. Tax Collected At Source:
There is also a new Rule implemented for online sellers if you are an online seller and selling product under any aggregator/Operator(Flipkart, Amazon, Paytm, Ola, Uber) the operator has right to take 1% TCS from your total sales and submitted it to govt. on your behalf but the amount 1%, the that has been deducted to your account, you can claim it further.
4. No Need to fill State Entry form:
Yes, you heard it right, now you don't need to fill any form or waste your time to fill multiple 403, 50 etc. These all form has been nulled.
It was also available in VAT system but no one has knowledge about it, now you can claim ITC under GST.
6. Claim ITC from Marketplaces:
Yes if you are an online seller and you are selling on Flipkart, Amazon.in, Shopclues etc. You can claim ITC for the commission they are charging you for selling your product to their marketplaces, you can not claim ITC for the courier services because ITC is not applicable to transport or shipping.You can claim ITC from your wholesaler, supplier, manufacturer if they are registered for GST.
These are the changes have done in GST for e-commerce sellers, hope we can see more changes in next financial year because sellers are still not happy with the regime. So, hope government will see the e-commerce industry Importance in GDP and do some changes.