Introduction

As e-commerce continues to thrive in India, it has become essential for online sellers to understand the basics of filing GST returns. Goods and Services Tax (GST) is a tax levied on the supply of goods and services in India. It is mandatory for all e-commerce sellers to register under GST, regardless of their sales volume. In this article, we will provide a step-by-step guide to GST registration and filing for e-commerce sellers.

Why do E-commerce Sellers need to register under GST?

The Government of India has mandated GST registration for businesses with an annual turnover of over Rs. 40 lakhs. For businesses in the northeastern states, the turnover threshold is Rs. 20 lakhs. GST registration is a must for e-commerce sellers as they are considered to be providing a service of facilitating the sale of goods on their platform. This service is taxable under GST, and therefore, e-commerce sellers must register under GST and file regular returns.

Steps to register for GST

Step 1: Obtain a PAN card

The first step to register under GST is to obtain a Permanent Account Number (PAN) card. PAN is a unique identification number assigned to taxpayers in India. It is mandatory for all Indian citizens who pay taxes to obtain a PAN card. You can apply for a PAN card online on the NSDL website or visit your nearest PAN card center.

Step 2: Get your business registered under the Companies Act

E-commerce sellers can register their businesses as a sole proprietorship, partnership firm, LLP, private limited company, or public limited company. They need to get their business registered under the Companies Act before applying for GST registration. This step involves obtaining a Certificate of Incorporation (COI) or a Registration Certificate (RC) depending on the type of business.

Step 3: Obtain a digital signature certificate (DSC)

A Digital Signature Certificate (DSC) is an electronic form of a signature that is used to sign online documents. E-commerce sellers need to obtain a DSC to file GST returns and other statutory documents online. DSC can be obtained from certified authorities such as eMudhra or Sify.

Step 4: Register on the GST portal

E-commerce sellers need to register on the GST portal by visiting www.gst.gov.in. They need to fill in their details such as name, PAN, email ID, and mobile number to create a User ID and password. Once the registration is complete, the seller will receive an Application Reference Number (ARN) on their registered email ID and mobile number.

Step 5: Submit the required documents

After registering on the GST portal, e-commerce sellers need to submit the required documents. The documents required for GST registration include:

• PAN card
• COI/RC
• Identity and address proof of the business owner
• Photograph of the business owner
• Bank account details
• Authorization letter The documents can be uploaded on the GST portal or submitted physically to the GST office.

Step 6: Verify the application

After submitting the required documents, e-commerce sellers need to verify their GST registration application. This can be done through the GST portal or physically at the GST office. The GST officer will verify the application and if everything is in order, they will issue a GST registration certificate.

Filing of GST returns

After registering under GST, e-commerce sellers need to file regular GST returns. The GST returns can be filed online on the GST portal. The following are the different types of GST returns that e-commerce sellers need to file.

Filing of GSTR-1

After the registration process is complete, the e-commerce seller needs to file GSTR-1. This return form includes the details of all the outward supplies made by the seller during the previous month. The following details are required to be provided in the form:

• GSTIN of the seller
• Name of the seller
• Details of all the invoices raised
• Details of all the credit notes and debit notes issued
• Details of all the advances received against invoices

It is important to note that GSTR-1 needs to be filed on a monthly basis by e-commerce sellers having a turnover of up to Rs. 1.5 crore. Those having a turnover of more than Rs. 1.5 crore need to file it on a quarterly basis.

Filing of GSTR-3B

The next step after filing GSTR-1 is the filing of GSTR-3B. This return form includes the details of all the inward and outward supplies made by the seller during the previous month. The following details are required to be provided in the form:

• GSTIN of the seller
• Name of the seller
• Details of all the purchases made
• Details of all the input tax credit claimed
• Details of all the tax paid It is important to note that GSTR-3B needs to be filed on a monthly basis by e-commerce sellers having a turnover of up to Rs. 5 crore. Those having a turnover of more than Rs. 5 crore need to file it on a quarterly basis.

Registering on E-commerce Platforms

You can register on the multiple marketplaces available to you once you have completed the GST registration. We have provided detailed guides on how to register as a seller on Amazon, Flipkart, Meesho, etc. You can also reach us if you need help registering on these platforms.

Conclusion

In conclusion, GST registration is mandatory for all e-commerce sellers in India, irrespective of the sales volume. The process of GST registration is simple and can be done online through the GST portal. E-commerce sellers need to file GSTR-1 and GSTR-3B on a monthly or quarterly basis depending on their turnover. Filing these returns on time is crucial to avoid any penalties and legal issues.

At Dhanaay, we understand the importance of GST compliance for small and medium businesses in India. We provide end-to-end solutions for GST registration and filing to help businesses stay compliant and avoid any legal issues. Our team of professionals can assist e-commerce sellers with the entire GST process, from registration to filing returns. We offer affordable monthly and quarterly plans to help businesses manage their financial burdens. With the support of Dhanaay, e-commerce sellers can focus on growing their businesses and achieving their goals. Connect with us to learn more.