Gst in e-commerce

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2018 Dear Seniors,

i am going to start my E-commerce business where i have few queries regarding GST.. please guide

I will be doing business of food products where i have small suppliers who doesnt have any GST and neither they are interested to take GST registration.....Can i act as e-commerce seller for them and as an independent e-commerce operator for big suppliers and pay GST and collect TCS

What if i consider everyone as supplier and sell on my website and pay GST under my company registration

My main concern what should i do to take my business forward with such small suppliers who doesnt have GST

Is it possible for me that i collect materials and sell them on my website and pay GST as a company so that i can avoid Tax collection at source...

Please guide...

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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16 May 2018 Currently TCS provisions are not applicable. Once the provisions are made applicable, the supplier of goods through e-commerce operator should take mandatory registration under GST (irrespective of their turnover). But many suppliers will not be willing to take registration unless their business is more than 20L.
To continue business with such small suppliers, you can buy from them and supply to customers. In this case, the supplier issued tax invoice in your name (e-commerce) and you will issue tax invoice in the name of customers.
If the goods are supplied by e-commerce operator itself (owner of the goods) through e-commerce platform then TCS provisions are not applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2018 if vendor doesnt have GST registration... how they will give tax invoice to me.......

Querist : Anonymous

Querist : Anonymous (Querist)

16 May 2018 Can i show all sellers of ecommerce platforms as my suppliers so that i can issue GST invoice to customers straightaway

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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17 May 2018 Yes you can do that as i told above, you need to procure and sell to customers with your tax invoice.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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17 May 2018 If vendor is not registered he will issue invoice without GST. Currently no RCM on URD procurement.
once the said provisions come to effective you need to pay tax under RCM and take credit of the same.

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2018 Madam can you please explain RCM and its limit & eligibility and how i can take credit of the same?

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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17 May 2018 As per Section 9(4) of CGST Act, registered person procuring goods or services from unregistered supplier shall pay tax under RCM and claim input tax credit of such tax paid (can be taken in same month). However, the said provisions are deferred till 30th June 2018. Once they implement we will get to know upto what value there will not be tax under RCM. Earlier procurement in a day less than 5000 from all the suppliers no tax under RCM. We need to wait for the notification to implement RCM provision for better clarity.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2018 As on date if my procurement is less than Rs. 5000 then do i need to pay GST and charge GST to my customers? Is it ok if I start selling without GST till June18

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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17 May 2018 till June 2018 you can sell without GST because there is no tax liability under RCM.

NYKNYK

NYKNYK (Querist)
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18 May 2018 if my unregistered supplier supplies products from Bangalore to Ahmedabad customer that is interstate.....is there any problem in RCM under gst or any other tax liabilities which can arise in this case