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.

Some of the recent compliances which impacts the online Ecosystem

  • TCS @ 1% under GST on online selling: E-commerce operators are required to deduct 1% TCS on sales generated by the sellers on their platforms.
  • Introduction of TDS (under income tax): The budget 2020 proposed to levy TDS @ 1% on payments made towards supply of goods or services facilitated through e-commerce platforms, if the gross payment exceeds Rs 5 lakh a year.

The rationale behind the above deductions is pretty clear, the government wants to keep a track of online business. Since, there would be TCS under GST and TDS under income tax, one needs to file their GST & income tax returns accurately to avoid any tax complications

Frequently asked questions

Q- When do I need to file gst return of my new e-commerce business?

Ans – Filing need be done every month so that the input tax credit and TCS – if any- can be availed.

Q- Do I have to file a GST return every month if I have a GST number but if I am not able to sell any goods through e-commerce websites like Amazon or flipkart?

Ans – you need to file your GST Returns every month and that too within the due dates prescribed under the GST Law.

Q- What will happen if you do not file your return?

Ans – In case of no sale you need to file a Nil return showing 0 sales. In case you made any purchase and your stock increase then stock details also have to be declared. If you didn’t file your nil return then late filing fees and penalty will be charged

Q- Quantum of penalty for non-filing of GST Return/ forget to file GST Return?

Ans – The late filing fee of GST Return is 20 Rupees per day if there is no sale and 50 Rupees per day if you made even a single sale in a month.

Q – If you don’t file the GST return and not paying the penalty, Consequences?

Ans – You will get a Notice from GST department regarding Non filing of GST Return and then they will order you to pay the amount and if you don’t pay then they have many powers as per GST Law to recover the same

Q – Is it compulsory for E-commerce operators to obtain GST REGISTRATION?

Ans– It is compulsory for all  E-commerce operators to obtain Gst Registration irrespective of the value of supply made by them. There are 3 returns per month (GSTR 1, GSTR 2 & GSTR3) and an annual return (GSTR 9).

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