Hello, I want to start an e-commerce online store, where my suppliers will be from outside of India, and my customer base will also be outside of India. For this do I need to register my business? If yes, what is the type of business to be registered as (proprietorship or one person company or private company)? For this business what type of taxes that I need to pay? Do I need to get GSTIN number? Are there any other legalities that need to be taken care of? If for above type of business if my suppliers as well as the customer base is in India what will be the legalities to be taken care of? I feel very grateful if anyone answers my questions. Thank you.
As you are starting business, it is advisable to start with sole proprietorship. You need to register for GST as an ecommerce operator. The nature of service provided by you is termed as export of service for which there are two options. Export with payment of taxes and without payment of taxes.
In the context of Indian base you need to charge GST on the commission,shipping charges etc. on the invoice raised by you.
Thanks
Hi
Registering a business is not necessary.
You can operate as a sole proprietorship business under your PAN.
You have to pay income tax and GST.
According to general invoicing in dropshipping, GSTN would be required. GST will be 18% on the profit element. How invoicing will be done?
For India, let me know how invoicing will be done according to which Tax treatment shall be decided.
Hi,
1. You can do the business in any form. Proprietorship is better for starting a new business.
2. Yes, you will have to register for GST and will have to pay GST on profit element (sale minus purchase). It will be considered as commission income.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
