Question 1: I plan to start ecommerce business to sell on Amazon. I also make websites for local clients. I understand that I will have to register a new LLP company for eCommerce purposes and pay GST. My question is... Will I also need to pay GST if I provide services as an individual? That means websites I make as a freelancer? Question 2: Also, how can I keep control and powers with myself of my business when registering for an LLP. What if i don't want to give control to my business partner? Is there an easy way to do that? Question 3: What if I register multiple businesses to remain under the 20 lakh bracket and not register for GST if supplying in same state. Is it allowed?
Dear Sir,
Hope you are doing well !!
1. Freelancer is only required to have GST registration if the aggregate turnover/receipts is above 20 lakh.
2. We can have detail discussion over call. We may assist you in entire procedure.
3.No, it is not allowed.
Aggregate turnover/receipts is to be calculated by taking together the value in respect of activities carried out on all India basis.
Hi
You can have multiple businesses under your PAN under single GST registration. E-commerce sales can also be done through the same. You may register a sole proprietorship for the same.
Since you will be selling through e commerce platform, you need to take a GST registration. Gst registration will be in your PAN if you will carry out this business through sole proprietorship. Or if it is through LLP or a company, GST registration would be in LLP /company's name.
If you are supplying services in India, you will have to charge GST in invoices. If it is an export, you may apply for LUT and then export services without payment of GST.
Hi
1.As a service provider, a freelancer is required to mandatorily register under GST in the following situations:
2. You can draft partnership deed as per your mutual agreement. We can assist you in this.
3.No it is not allowed.
It is not essential to form an LLP to sell on Amazon. You can also sell as individual. GST registration is mandatory to sell on Amazon.
Once you register in GST it will be applicable on freelancer services also.
If you have to sell on Amazon GST registration is mandatory. GST registration is PAN based so turnover of all business will be included to calculate exemption limit.
I want to save GST .. so can i keep my income and my business income separate and i don't register for GST and save tax there? possible?
For your e-commerce business, you will have to take GST registration of the entity in which you are doing this business.
GST is to be collected from the customers, it is not your additional cost.
If you form a different entity all together for this business and supply services from your individual name, GST shall not be applicable on such supply of services.
But, the formation and compliance of LLP would add to your annual costs.
Hello,
There is no compulsion on registering an LLP for E-commerce business, you can register it as sole proprietorship also. GST registration would be required for the E-commerce business.
Yes if the GST registration is taken on your PAN as a sole proprietorship, GST would be applicable to your freelancing income also.
For better control over LLP, you can draft the partnership deed/LLP Agreement in a proper manner.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
If you register a different entity (such as Private Limited Company/ LLP / Partnership Firm) for the e-commerce business, then GST would be applicable only to your business income and not to your freelancing income.
1. If you wish to sell goods on Amazon or even your own website where you plan to target nation wide customers you will have to register under GST.
If you wish to focus just on local clients and not register on amazon no need to register under GST.
There is also no need to register an LLP or company to sell on amazon.
All business would be linked with single PAN so it won't help you.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
GST wont harm your income because you will any which ways recover GST from customer.
I think you should book a phone consultation to understand it better.
You cannot sell on Amazon without GST and once you register your freelancer income will be covered in GST.
Hi
GST is an indirect tax in which the burden of tax is to be borne by the final consumer.
Basically GST is a collection from customer and not from own pocket.
It is upto you how to collect it from customer either by increasing the fees amount or charging GST separately on the your fees.
Dear Sir,
It is not necessary or compulsory to start LLP for e commerce purposes. The services can be provided or goods can be supplied through e commerce platforms as an individual seller also. GST applies in case an individual renders services through e commerce platforms.
And in case one wants to incorporate LLP without giving much powers to the other partner then you yourself can become the designated partner and the other person is just partner and not designated.
Thanks & Regards
Shiv Kumar Agarwal
