Dear Friends, in the era of Digitalization, now the customers are shifting from retail market to online Platforms like Flipcart, Amazon, Snapdeal etc for there purchase requirements. As we all know in the present time, customer is king, so the businessmen are also shifting from retail market to online platforms.

Many persons have shifted their business to online platforms and many others are thinking about the same. In this article, we will discussion about the compliances, which a businessman is required to do, if they sell their products through these E Commerce Platforms.

Mandatory GST Registration

 As per GST Act, if you want to sell your products through online E-Commerce Platforms like Amazon, Flipcart, Snapdeal etc then it is mandatory to get registered with GST Department. First of all, you have to take GST registration then you can apply for listing of your products with these E Commerce Platforms. No threshold exemption limit is allowed in case of sale through E-Commerce Platforms.

Filing of GST TDS/TCS Returns for claiming deducted amount

As per Section -52 of CGST Act, 2017, every electronic commerce operator is required to collect TCS @ 1% of net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. Mostly, dealers are not aware about this provision. When dealer file this return then the deducted amount will be credited to there cash ledger which can be utilised by them for making payment of their GST dues.

Filing of GST Returns

In many cases, it was observed that, many dealers who got GST registration for selling their products online do not file there GSTR-1 and GSTR-3B due to which there GST registration will be cancelled after 6 Months on suo-motto basis. So, kindly note that, filing of GST return after registration is mandatory irrespective of sales turnover.

Deduction of TDS U/s 194 O of Income Tax Act

From 01.10.2020, now every E-Commerce operator is required to deduct TDS at the time of credit of amount of sale of goods/services to the account of an e-commerce participant or at the time of payment thereof to such e-commerce participant by any mode, whichever is earlier. If TDS is deducted under this provision then dealer is required to file Income Tax return to claim this TDS Amount.

Deduction of TDS by dealer

If the turnover of the dealer is more than Rs.1 Crore during the previous year then TDS registration is mandatory and dealer is required to deduct TDS under applicable provisions. In mostly cases, dealer is required to deduct TDS u/s 194C, and 194 H on fees and commission paid to E-Commerce platforms. Precaution must be taken while applying this provision because wrong deduction may create problem for the dealer.

Applicability of Other Laws

As per new guidelines, issued few months back by the Government of India related to transactions done through E Commerce portals like mentioning of origin country detail of products imported from other country, date of expiry in case of perishable goods etc must be followed to avoid any legal action from customer, E Commerce platform and government department side.

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Disclaimer: This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s person experience and provision applicable as on date of writing of this article. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persist kindly intimate us to avoid such error for the benefits of others readers.

The Author can be reached at mail –[email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, New Delhi, IN
Member Since: 03 Dec 2018 | Total Posts: 51
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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