• GST for ecommerce

Hi,
I am going to start my e commerce marketplace.

I have heard that as a e-commerce company has to register in each and every state where their sellers are based for 1%TCS collection.

is it true?

What will be GST calculation for such platform.

I just want to understand my business as per accounting and GST prospective.

And looking for consultant who is dealing with this kind of E-commerce business
Asked 17 days ago in GST from Ghaziabad, Uttar Pradesh
Hi,

Yes, it is true.

The Finance Ministry recently notified that e-commerce operators shall collect an amount at the rate of one per cent as tax collected at source (TCS) under the Goods and Services Tax (GST) on the supplies made by them. Of the amount collected, half will go to the Centre and half to the State where the supply takes place.
Karishma Chhajer
CA, Jodhpur
540 Answers
3 Consultations

5.0 on 5.0

Hi,

- It is compulsory for e-commerce to obtain GST registration without any threshold limit. You need to obtain registration as normal taxpayer and under TCS also. Under TCS, you need to register where your suppliers are based.

I reside in Delhi. We can meet.

Thanks
Vivek Kumar Arora
CA, Delhi
1637 Answers
48 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !!

Yes, it is absolutely true. 

E-commerce operators will have to register themselves in every state where their suppliers are located for collection of TCS.

E-commerce companies will from October 1 have to deduct 1 per cent tax collected at source (TCS) before making payments to their suppliers.

We may help you in accounting as well as GST perspective.
Payal Chhajed
CA, Mumbai
1001 Answers
8 Consultations

4.8 on 5.0

Hi,

Yes it is compulsory for e-commerce business to obtain GST registration without any threshold limit.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
1377 Answers
17 Consultations

5.0 on 5.0

Yes, your understanding is correct.

E-commerce operators are required to take registration in each state for the purpose of collection of TCS.

You will have to collect 1% TCS on the value of goods/ services supplied by the vendors through your e-commerce platform.

Please call/ revert for further queries.
Lakshita Bhandari
CA, Mumbai
2177 Answers
71 Consultations

5.0 on 5.0

Hi,

"In order to facilitate the obtaining of registration in each State / UT, the e-commerce operator may declare the Head Office as its place of business for obtaining registration in that State / UT where it does not have physical presence,"

Please find below the calculation as below:
Karishma Chhajer
CA, Jodhpur
540 Answers
3 Consultations

5.0 on 5.0

No, you don't need to open office in each and every state. You can register from your registered office.

If companies share after deducting commission etc is 900 RS., TCS will be 9 RS.
Lakshita Bhandari
CA, Mumbai
2177 Answers
71 Consultations

5.0 on 5.0

Hi,

You do not need to open a office in every state.
You can just register with your registered office address.

You need to deduct 1% TDS on the amount post deduction of the marketplace commission.

Regards,
Nikhil
Nikhil Khanna
CA, Mumbai
1377 Answers
17 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

It is not mandatory to open office in each and every state.

You can simply use your principal/head office address for GST registration.
Payal Chhajed
CA, Mumbai
1001 Answers
8 Consultations

4.8 on 5.0

Hi,

- TCS will be deducted net of GST.

- Your commission and payment gateway charge will be on total value (including GST).

- Additionally you need to deduct TDS under Income tax.

Thanks
Vivek Kumar Arora
CA, Delhi
1637 Answers
48 Consultations

5.0 on 5.0

Yes for e commerce website it's compulsory to get registered without any limit and they need to register in every state where their supplier resides for TDS purpose.
As far as normal scenario goes with regards to Flipkart and what I have seen personally is that they only charge commission and no payment gateway charges are charged separately they would be including it in their commission and now since there is TDS they would charge it separately.

Hope you find the above information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Naman Maloo
CA, Jaipur
496 Answers
4 Consultations

5.0 on 5.0

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