Impact of GST on Ecommerce Market Place – Here Is What You Need To Know

Goods and Services Tax (GST) is a single tax reform that is applicable across all states in India. This GST taxation will replace all the existing indirect taxes such as sales tax, service tax, VAT, CST, entertainment tax, luxury tax etc. The vision behind this taxing is to bring the nation together under a single tax structure, right from manufacturers to end consumers creating a unified common market.

India has started to roll out with the new era taxation of GST from 1st July, 2017. Ecommerce industries will have noticeable impact with GST. This taxation structure is expected to rationalize seamless integration of goods and services across India. Let us explore the positive and negative impacts on ecommerce marketplace at various stages.

Major Changes on Ecommerce: Registration - Under GST all ecommerce business operators are mandatorily required to register irrespective of their turn over. Listings – Harmonized System Nomenclature code (HSN) is a globally accepted nomenclature for classifying traded products. Tax rate that is applicable for a particular HSN code will be used for computing all taxes. All sellers will have to enter this HSN code of all the products on their dashboard as a compliance requirement.

Filing of GSTR-8 – – Ecommerce business operators have to file a special tax GSTR-8 which will be containing tax details that is collected from their suppliers’ sales. In addition they also have to file their monthly return taxes GSTR-1 and GSTR-2 and GSTR-9, an annual return.

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