e commerce

344 views 6 replies
i want to sell my products on amazon, which is an e commerce site

now for selling anything on amazon i need to have a gst id,
so if my sales are less than, 20 lakhs

how can i afford to pay 18% of profit into tax. ??
Replies (6)
Yes as per section 24 CGST Act supply on behalf of E-commerce is , the registration is mandatory irrespective of turnover .

Even though its not sold on behalf of E-COMMERCE & its General sale ,the GST is applicable on profit only.

Note : Services provided on behalf E-commerce , no need to take compulsory registration if the threshold limit is not exceeding. (As per Noti.65/2017 CT)

**Moreover Generally E-commerce operator not deals with supplier who is not having GST No.
GST is not charged on profit. You just need to charge it from customers and remit it to govt. Additionally you would be eligible to avail ITC as well.
thats absolutely correct answer GST is not charged on profit. You just need to charge it from customers and remit it to govt. Additionally you would be eligible to avail ITC as well.
Its understood that GST is on transaction value , But its always payable on profit only , lets understand with Eg.

taxable purchae 100
GST @ 5 % 5
total purchase 105

same goods sold
taxable sale 150 (Profit Margin is 50)
GST @ 5%. 7.5
total sale 157.5

GST payable (7.5-5) =2.5
hence GST 2.5/- is payable on profit margin 50/-

@ Anirudh, KPS Group
Now plz let me know how GST payable is not on profit .........
I meant that GST is not payable out of profit. In your example as well, you can calculate that profit of dealer remains 50/- (157.5-105-2.5) as desired by dealers. Thus, it will be wrong to say that dealer will have to afford 18% tax of profit after gst implementation.
GST is an indirect tax and burden lies on final consumer only.

THATS WHAT THE QUERIST HAS STATED & REPLIED BY ME


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