How to Sell online on Amazon, Flipkart or PayTM under GST

Introduction

E-Commerce in India is at its rise, with the up and down, two major e-commerce player Amazon & Flipkart, in the last two years has revolutionised the online shopping space in India.
With their concepts of Prime, Assured, Same day delivery, they have created a trust among the Indian shoppers and sellers and that’s why lot more sellers are enrolling themselves to sell on these e-commerce platforms.

Since GST is coming, the taxes system is going to be changed completely and it will hit the e-commerce platforms and their existing and new registered sellers also. We are receiving a lot more queries on daily basis related to selling online, or how to sell on online platforms like Amazon or Flipkart after coming of GST. 

Based on those queries we will let you know how you would able to sell online on these platforms:

For Existing Registered Dealers on Amazon or Flipkart

As the GST has to be started from 1^st July 2017, these e-commerce companies have tightened up their compliances and asked their existing dealers to migrate under GST and get the GSTIN number issued.

What happen if Seller does not Migrate to GST

As the date of application of GST is coming near day by day these platforms have restricted their sellers to sell any goods on the platforms without submitting the GSTIN number which they got after they migrate their existing VAT/CST into GST tax regime.

Also, From 15^th of June, those who have not complete their migration into GST, their accounts will mark as Pending.

What is the last date of GST Migration?

Earlier the date of GST Migration was 15^th June 2017, but as per the GST official website the GST migration will get reopen from 25^th June 2017 and remain open beyond 1^st of July 2017.

For Documents required for GST migration – Please click here
 

For New / Fresh Dealers who do not have VAT/TIN

Now the problem comes with the new or fresh dealers, who do not have any VAT/TIN details with them and want to start selling online on these e-commerce platforms.

Effective, 15^th of June 2017, these e-commerce platforms have mandate GSTIN for new sellers whosoever wants to on-boarded and without GSTIN no new application for online selling would be entertained.

How to get GSTIN for New Business

Till now, no official date has come for fresh GST registrations from the government side, but as per the latest tweet of GSTN, the same would get started before 1^st of July 17.

So this means, those who want to sell online but do not have existing VAT/TIN number have to wait till the new GST registration get started and after that registration can enrol themselves on these platforms to start the online sale.

Documents and Information required for GST Registration – Click Here

Process of Opening up of Online Store on Amazon or Flipkart

As the number of people using the internet is increasing day by day, the demand of online shopping is increasing also, and due to this increased demand, most of the offline sellers wants to move to setup their online presence on these e-commerce websites. To setup an online store is very simple on these websites and here is the process:

1. Create your login and enter your business details like firm name, address, phone number and upload all the related documents.
    
2. Add Your GSTIN number to the profile as it is mandatory now.
    
3. Add your business bank account, so that all the settlement would come directly in this account.
    
4. Add your Pickup address, if you want the pickup service of these platforms, Make sure the pickup address should be same as coming in your GST registration certificate if the same is not coming please update your GST details and add the entered place as an Additional place of Business.
    
5. List your products on these platforms (There might be minimum product listing requirement of the platform e.g In Flipkart one should add minimum 5 product to start an online store)

And, after these steps, you are ready to sell online as your products are live and ready to be seen to general customers of these websites.

Impact on Online Sellers after coming of GST

With the coming of GST, one of the major change is coming for online sellers and marketplaces and the same is that e-commerce platforms like Flipkart, Amazon, PayTm are mandatorily required to deduct 1% TCS (Tax Collected at Source) while making payments to their suppliers and the same gets deposited by these platforms as GST liability of seller with the Government.

This TCS which is collected by the E-commerce platform can be claimed as credit by the online seller by filing the monthly returns under GST.

Conclusion

As most of the online sellers are unaware of these e-commerce platform rules under GST, the only advice which we can give to them is that they should strategically plan their transition into GST and keep them aware of all the changes required to be done for a smooth flow of operations and trade.

If you want to register under GST, pre-book the same from here – GST Registration

If you have any query relating to any part of above article, kindly write to us at info@hubco.in.

Related Links:

• GST Return Filings
• GST Software

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