VAT tax is a different topic for every business, but for ecommerce sellers, there are certain points which should always be kept in mind. One of such point is the GST return filing. Let’s discuss about the same in this article for GST for ecommerce sellers.
With GST in place, it’s important to find ways to simplify your sales process. According to the latest research, there are about 8 million small businesses in India which are active in ecommerce space and have registered for GST which is expected to result in a growth of ecommerce industry from $75 billion to $100 billion. Now is the time for all E-commerce sellers to adopt GST compliant software so that they can smoothly go through the transition from VAT regime. The good news is that most of the software available in the market like ECOMetrix are now giving free migration services of VAT to GST and hence making it simpler for you to deal with the changes brought about by this new tax system specifically for ecommerce businesses.
Running an e-commerce company seems tough at first, especially when you don’t have the right tools in place. It becomes a challenge to manage everything from inventory, orders, and accounts receivables. I’m sure you’ve already heard about the headaches involved when things go wrong.
What is E commerce?
E-commerce refers to the purchase and sale of goods and/or services via electronic channels such as the internet. E-Commerce refers to any form of business transactions conducted online. The most popular example of E-Commerce is online shopping, which is defined as buying and selling of goods via the internet on any device. However, E-Commerce can also entail other types of activities, such as online auctions, payment gateways, online ticketing, and internet banking. In this article, we have discussed about GST returns for E-commerce operators and sellers.
Types of E-commerce platforms
E-commerce operator/marketplace (e.g. Flipkart, Amazon etc): It is an entity which owns, operates or manages digital or electronic facility or platform for E-commerce.
Suppliers/aggregator on E-commerce platform: It is an entity which supplies goods or services on an E-commerce platform.
GST return filing for E-commerce operators and sellers
- The sellers/aggregators who are registering themselves for E-commerce platform shall register themselves under GST.
- There are several returns to be filed under GST for E-commerce operators and suppliers.
- Unlike regular businesses, there is no threshold exemption for the E-commerce suppliers and operators.
- These E-commerce entities come under the GST compliance irrespective of the value of supply and hence are required to file GST return online.
- GST return form includes the details such as purchases, sales, output GST and Input Tax Credit (ITC) which are to be submitted on monthly, quarterly or annual basis.
GST return filing forms for E-commerce operators and sellers
- E-commerce suppliers/aggregators are required to file Form GSTR-1, GSTR 2, GSTR 3 monthly and GSTR-9 is to be filed annually.
- E commerce operators are required to file their GST return in form GSTR 8 in monthly basis.
Form GSTR 1
- GSTR 1 is a monthly return filed for sales or outward supplies.
- Every business registered under Goods and Services Tax must file GSTR 1.
- The due date for filing GSTR 1 for E-commerce sellers would be 10th day of following month.
Form GSTR 2
- GSTR-2 is a monthly return for inward supplies of goods or services or both received during a tax period.
- The filing of GSTR 2 makes them eligible to avail Input Tax Credit wherein the taxpayer can claim the refund of tax on purchases or deduct that much amount from the tax payable on outward supplies.
- The due date for GSTR 2 would be 15th of subsequent month.
Form GSTR 3
- GSTR-3 is a consolidated monthly return which contains details of tax liability along with the tax collected on outward supplies and tax paid on inward supplies by registered E-commerce supplier/seller.
- It is an auto-populated process through GSTR-1 and GSTR-2 of the registered person.
- The due date for GSTR 3 return filing would be 20th of the next month.
Form GSTR 8
- GSTR 8 is one of the most important form which need to be taken utmost care for an E-commerce operator.
- GSTR 8 is a statement that must be filed by E-commerce operators every month. It must contain the details of supplies made to customers through the taxpayer’s E-commerce portal by both registered taxable persons and unregistered persons, customer’s basic information, the amount of tax collected at source(TCS) (to be counted at 1%) , tax payable, and tax paid.
- The monthly due date for GSTR 8 would be 10th of the following month.
Form GSTR 9
- All the taxpayers registered under GST including E-commerce sellers and operators are required to file their annual return in a particular form. That form is called the GSTR 9.
- GSTR-9 consists of details about the supplies made and received during the year under different tax heads i.e., CGST, SGST, and IGST.
- It consolidates the information furnished in the monthly/quarterly returns during the particular year.
- The due date to file the GSTR-9 is 31st Dec of the preceding year.
GST Return Filing for E-commerce Platforms
| Return/Form | Details | Frequency | Due Date |
| GSTR – 1 | Outward sales by seller | Monthly | 10th of next month |
| GSTR – 2 | Purchases made by seller | Monthly | 15th of next month |
| GSTR – 3 | GST Monthly return along with the payment of tax | Monthly | 20th of next month |
| GSTR – 8 | GST Return for E-commerce Operator | Monthly | 10th of next month |
| GSTR – 9 | GST Annual Return | Yearly | 31st Dec of next financial year |
Though the compliance under GST has increased for the E-commerce industry, still it improves the market for the local suppliers as they can sell in any state with same tax rates. This will promote more sellers to go online and provide best services to the customers. Also, any small start-up will get a huge market opening if they are carrying out a trade using the e-commerce market.
Step 1: Download the Sales Report from the e-commerce website
All sellers on e-commerce platforms can generate a monthly Sales Report from their login.
Amazon Sellers can download Merchant Tax Report from their login.
Similarly, Flipkart and Paytm and other e-commerce Sellers can also download the Sales Report from their sellers login.
Step 2: Split the Sales Report
The downloaded Sales Report has to be split into 2 reports:
- One Excel containing details of all sales. You can do this by filtering your excel (stepwise detailed explanation provided in the PPT below).
- Another Excel containing all the Credit Notes (goods returned).
Step 3: Upload the Excel on ClearTax
All you need to do now is upload the Excels on ClearTax GST Software. Amazon, Flipkart, and PayTM Sellers can choose the Template based on the type of Excel being uploaded.
If you are a seller on any other e-commerce platform you can use our ‘Field Mapper’ to upload your Sales Reports, Map the fields and save it as a template.
Once the Excel files have been uploaded on ClearTax GST Software all you need to do is review and upload the data to GST Portal/ GSTN.
Below are the detailed guides that can help sellers download sales report and upload the Excel to ClearTax GST Software.
All about Online Sellers GST Return Filing
The trend of selling goods & services on-line has seen very boost up now a day in India. It is very much convenient & economical to sell online on any E-Commerce Platform and one could grow this business even along-with their ongoing profession/business or Job. Most of the people now a days tend to buy products online, it’s very much easier and quicker.
The government has also realized the potential of the online ecosystem and that is why we have been seeing introduction of various tax compliances on online businesses time & again.
Further, we will primarily discuss on how a Seller of goods and services on E-commerce portal could file their GST returns and also on some recent compliance that has been made applicable.
Types of Online Sellers
There could be broadly 2 types of online sellers
- E-commerce operator: These are the platform owners who provide online selling platforms for sellers & service providers to sell their goods & services. Some popular E-commerce operators are: Amazon, Flipkart, Snapdeal, Paytm etc.
- Sellers on E-commerce Portal: These are the sellers who register themselves on the E-commerce platforms to sell their goods & services to the consumers. In this article, we are primarily addressing on how these sellers could file their GST returns
GSTR- 8 form for E-Commerce Portals
All e-commerce portals must be registered themselves under GST regime and must get the registration under tax collection at source (TCS). The form is filed by E-commerce portals like amazon, flipkart which gives detail about how much money of tax is collected at source from sellers of goods and services.
Monthly Filing of GST return of E-commerce operator in FORM GSTR-8 has to be done by the 10th of next month
GSTR 8 form is TCS deduction form for the e-commerce companies registered under the GST regime. Every month, E-commerce operators must file GSTR-8.
Which GST returns are required to be filed by the online sellers?
Currently like all other sellers, online sellers too are required to file GSTR 3B on a monthly basis and GSTR 1 on monthly or quarterly basis (depending upon the turnover). Those with annual turnover beyond 1.5 crores are required to file GSTR-1 monthly.
Also, since, e-commerce operators are collecting TCS on monthly basis, this can also be claimed by the online sellers on a monthly basis and could be used in the payment of output tax.
How to file the GST returns by online seller?
For online sellers, the e-commerce platforms provide the reports based on GST which can be used to file the GST returns.
GST based reports are provided by all major E-commerce platforms like Amazon, Flipkart, Paytm. Also, they provide the commission invoices and other useful reports which could be used for reporting & reconciliations as well. However, it is always recommended that these reports be reconciled with the books of accounts for any discrepancies before filing the GST returns.
How to use the reports to file the GST
These reports basically have the details of the Supplies, returns, cancellation etc. made by the seller. Some of the e-portals even provide the reports based on the tables/sections required in the GST return. Now a days so many software are available in market who will generate GST return directly from these reports. These reports are very easy to understand and can easily compiled the return through excel utility also.
CONCLUSION
e-commerce is becoming the primary source for goods and services in India. This trend is going to change the way small and big businesses view the market. Multiple tax and regulatory changes have made it difficult for small traders to stay in business. Especially, the e-tailers selling goods online face challenges in managing tax rates as they are not able to export goods out of India.
GST (Goods and Services Tax) is a revolutionary tax system in India which was enforced on 1st July, 2017 against the taxes in India which were more than Rs.5000. A common belief among the e-commerce sellers is that product returns will not be allowed after the implementation of GST. But the fact is nothing like that as there has been no change in the procedure for product returns for e-commerce sellers after GST implementation. On doing a quick roundup we found out that there are many software