All about GST Returns for E-commerce operator and sellers

What is E commerce?

E-commerce refers to the purchase and sale of goods and/or services via electronic channels such as the internet. E-Commerce refers to any form of business transactions conducted online. The most popular example of E-Commerce is online shopping, which is defined as buying and selling of goods via the internet on any device. However,  E-Commerce can also entail other types of activities, such as online auctions, payment gateways, online ticketing, and internet banking. In this article, we have discussed about GST returns for E-commerce operators and sellers.

Types of E-commerce platforms

E-commerce operator/marketplace (e.g. Flipkart, Amazon etc): It is an entity which owns, operates or manages digital or electronic facility or platform for E-commerce.

Suppliers/aggregator on E-commerce platform: It is an entity which supplies goods or services on an E-commerce platform.

GST return filing for E-commerce operators and sellers

• The sellers/aggregators who are registering themselves for E-commerce platform shall register themselves under GST.
• There are several returns to be filed under GST for E-commerce operators and suppliers.
• Unlike regular businesses, there is no threshold exemption for the E-commerce suppliers and operators.
• These E-commerce entities come under the GST compliance irrespective of the value of supply and hence are required to file GST return online.
• GST return form includes the details such as purchases, sales, output GST and Input Tax Credit (ITC) which are to be submitted on monthly, quarterly or annual basis.

GST return filing forms for E-commerce operators and sellers

• E-commerce suppliers/aggregators are required to file Form GSTR-1, GSTR 2, GSTR 3 monthly and GSTR-9 is to be filed annually.
• E commerce operators are required to file their GST return in form GSTR 8 in monthly basis.

Form GSTR 1

• GSTR 1 is a monthly return filed for sales or outward supplies.
• Every business registered under Goods and Services Tax must file GSTR 1.
• The due date for filing GSTR 1 for E-commerce sellers would be 10th day of following month.

Form GSTR 2

• GSTR-2 is a monthly return for inward supplies of goods or services or both received during a tax period.
• The filing of GSTR 2 makes them eligible to avail Input Tax Credit wherein the taxpayer can claim the refund of tax on purchases or deduct that much amount from the tax payable on outward supplies.
• The due date for GSTR 2 would be 15th of subsequent month.

Form GSTR 3

• GSTR-3 is a consolidated monthly return which contains details of tax liability along with the tax collected on outward supplies and tax paid on inward supplies by registered E-commerce supplier/seller.
• It is an auto-populated process through GSTR-1 and GSTR-2 of the registered person.
• The due date for GSTR 3 return filing would be 20th of the next month.

Form GSTR 8

• GSTR 8 is one of the most important form which need to be taken utmost care for an E-commerce operator.
• GSTR 8 is a statement that must be filed by E-commerce operators every month. It must contain the details of supplies made to customers through the taxpayer’s E-commerce portal by both registered taxable persons and unregistered persons, customer’s basic information, the amount of tax collected at source(TCS) (to be counted at 1%) , tax payable, and tax paid.
• The monthly due date for GSTR 8 would be 10th of the following month.

Form GSTR 9

• All the taxpayers registered under GST including E-commerce sellers and operators are required to file their annual return in a particular form. That form is called the GSTR 9.
• GSTR-9 consists of details about the supplies made and received during the year under different tax heads i.e., CGST, SGST, and IGST.
• It consolidates the information furnished in the monthly/quarterly returns during the particular year.
• The due date to file the GSTR-9 is 31st Dec of the preceding year.

GST Return Filing for E-commerce Platforms

Though the compliance under GST has increased for the E-commerce industry, still it improves the market for the local suppliers as they can sell in any state with same tax rates. This will promote more sellers to go online and provide best services to the customers. Also, any small start-up will get a huge market opening if they are carrying out a trade using the e-commerce market.