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Understanding Ecommerce

As the name suggests E-commerce refers to the sale and purchase of goods through electronic channels. Now you must be querying what exactly an electronic channel is. For your information the electronic channel refers to selling through electronic platforms like TV and the Internet. Although TV is not considered an e-commerce platform as most of the trade is made via Internet now. So the Internet is that electronic channel that makes e-commerce possible via any device.

So in simple language E-commerce is the online shopping that is done through the Internet. However E-commerce businesses can indulge in various other activities such as online auctions payment gateway online ticket booking e-banking and many more.


Kinds of eCommerce platforms


Usually there are two types of eCommerce platforms. It includes:

Ecommerce market place- This is a market place where a single platform sells all the items via different sellers. It is an entity that owns operates and manages the online selling of various goods.
Supplier- they are usually sellers who supply goods and services in an Ecommerce platform.


GST return filing for sellers and operators in Ecommerce business


1- The sellers who enroll themselves in any eCommerce platform should also register themselves Under the Goods and Service Tax.
2- The suppliers and operators have to file various GST forms for eCommerce.
3- Unlike other business that is nor eCommerce there is no threshold limit for eCommerce supplier and businesses.
4- All the eCommerce businesses come under GST compliances. So no matter whats the value of the supply they must file their GST online.
5- GST return form will include all the data about trades like sales purchases output income tax credit and many more. Thus you have to file all the details accurately.


Forms for GST return filing of e-commerce operators and sellers

All the eCommerce suppliers must file their GST compliances using the GSTR-1,GSTR-2,and GSTR- 3 forms. All these forms are filed every month. However there are other GST forms that the suppliers must file annually And that is GSTR-9.

On the other hand the e-commerce operators must file their GST returns in GSTR-8 form. This is monthly compliance that every eCommerce operator has to file.


Knowing about various GSTR forms


GSTR-1


1- Itis a monthly form filed for every sales/ outward supply
2- Allthe businesses that are enrolled under GST must file GSTR-1
3- The due dates to file the GSTR-1 form is the 10th of every month


GSTR-2


1- The GSTR-2 form is a monthly return form for all the inward supply of goods and services during tax duration.
2- Filing of this return form makes an eCommerce supplier eligible to obtain the input tax credit. Here the suppliers can also claim a refund for the tax paid on the purchases. They can even that much of amount from the tax payable for outward supply.
3- The due dates for filing the GSTR-2 form is 15th of every month.


GSTR- 3


1- It is a monthly return form that includes all the data about tax liabilities. It also contains information about tax accumulated for outward supplies and tax paid for inward supplies.
2- This filing process is an auto-populated process via GSTR-1 and GSTR-2 of the enrolled person.
3- The last date for filing the GSTR- 3 is 20th of the coming month.


GSTR-8


1- GSTR-8 is one of the most crucial forms.
2- It is a report that needs to be filed every month along with all details supplies made to all customers.
3- Due dates for filing this form is 10th of every month.


GSTR-9


1- All the taxpayers who enrolled under the GST must file this form. It also includes eCommerce sellers and operators.
2- It includes all the details about supplies made and received in a tax year.
3- It includes all the data supplies made and received during a tax period under various heads.
4- The due dates for filing the form is 31st December of every year.


Overview on GST returns filing for Ecommerce businesses


Return formDetailsFrequency for filingDue date
GSTR-1Outward sales made by Ecommerce sellerEvery month10thof every month
GSTR-2All the purchases made by the sellerEvery month15th of every month
GSTR-3GST monthly returns and the payment of taxEvery month20th of every month
GSTR-8Return for Ecommerce operatorsEvery month10th of every month
GSTR-9Annual return for GSTAnnually31st December of the coming financial year

The compliances have certainly multiplied for the Ecommerce Industry but it opens up a great opportunity for all the local eCommerce suppliers. They can sell in any region of India at the same tax rates. This will help all the businesses to go online and get a massive market via eCommerce.

Disclaimer:
Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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