I live in Bangalore and I am have started a dropshipping business business from my own website www.myWebStoreShopping.com. My target customers are from across the globe, including India. And once the customer places an order from my website I forward that order to my suppliers based in China who then ships the order directly to my customer irrespective of the location. (international customers Products does not enter India at all)
How would my taxes work? Obviously I have to pay income tax in India. What about GST? Do I pay GST on my turnover only if it crosses 20 lakh? Or how does it work? Since I am marketing and listing my Virtual products(No Physical) on my own website
Invoicing will be done with my store brand and my retail price in such a way that the customer does not know I am drop shipping, as far as I know.
I will be making and receiving payments by a gateway like PayPal or razorpay. And yes I would receive payments in multiple currency like Rupees, Euros, Dollars or so.
Further I'll explain the modus operandi.
1. Customer visits my webstore and places an order, say for $10. The customer then receives an electronic invoice by email with my store name saying that the order has been confirmed.
2. I take the order and customer details and forward the order to my supplier based in China and I pay them wholesale price and shipping cost, say $5.
3. The supplier then ships the order to the final customer.
4. Customer receives the package with no invoices.
5. I keep the $5 profit.