Taxes required for online marketplace

Hi,

- This type of business is called e-commerce and person operating it is known as e-commerce operator.

- Under GST, you need to obtain registration compulsory without any threshold limit of turnover. You need to register as a normal taxpayer and as TCS (e-commerce). Under normal taxpayer, you will be liable to pay GST on the market place fees, shipping charges and others collected from the vendors. Under TCS, you need to register in all such states from vendor will supply goods. All vendors supplying goods on your web portal are compulsorily required to register for GST. Vendors supplying services on E-commerce platform are liable to register when turnover crosses threshold limit. 

You need to collect TCS from vendors and deposit it with the govt. by 10th of the next month. Also file GST-TCS returns monthly apart from normal GST returns.

- Under Income tax, you need to maintain books of accounts, get them audited and file ITR on annual basis.

Thanks

Hi

GST: Mandatory registration required as you are into e commerce.

TCS: As e commerce operator,you will have to collect TCS (1%) on total amount including your commission and deposit to govt account by 10th of next month.

And  Income tax compliance required.

Hope it helps

Dear Sir,

You services are classified under E-commerce.

All service providers, whether supplying intra-State, inter-State or through E-Commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).

In the 23rd GST Council Meeting, the benefit of threshold limit was made available to e-commerce operators.

GST & related compliance- GST registration is not required provided your aggregate turnover does not exceed Rs. 20 lakhs.

Income Tax- In India, Income-tax Act and Rules make no specific provision for electronic commerce. All transactions are taxed or not taxed irrespective of how the order is placed and how the goods are delivered. 

Thanks & Regards,

Payal Chhajed

HI,

There are two ways of business online

1. You are selling products of your company then you have to PAY GST and to be registered as TaxPayer

2. Another you are selling products on your marketplace related to others, then you will charge some charges to the said seller and then you have to pay GST on these charges , in such case you have to take two registration

one is as tax payer for the collection of these charges and another one is as a TAX Collector being a E commerce Operator

Feel Free to ask any question

Yes you need to register for GST if you think your turnover i.e. in your case commission earned will be more than 20 lakh in a year.

You don't have to collect any GST from seller on the goods sold seller will directly charge GST from customer you need to charge GST on your commission amount.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you