E-commerce - what taxes should i pay

Hi,

I live in Bangalore and I want to start selling products online. These are products that I have got manufactured in China. I want to use Amazon and Ebay to sell them. I applied for my GST number (as a sole propietor) for this sole purpose last month and I got my provisional GST number. I am new to the business and so I literally don't know anything about taxes. I read a lot of articles on the internet but I'm not able to decide what to follow because of all the different information out there. I would be selling across India. I do not have a tax consultant. It would be great if you could answer the following questions:

1. I'm sure my turnover would not cross ₹2.5 lakhs, at least for the first year. Do I have to pay taxes?

2. This question may be stupid but I'm curious to know the answer. How does the government know how much tax I owe. Do the ecommerce marketplaces pass on the information of every sale I make to the govt. or is there some other way the govt. gets to know?

3. If yes, what are the different taxes that should I pay and how do I calculate them?

4. Should I provide the buyers an invoice for the sales I make? If yes, then I do not have a logo (at least a registered one) because my GST is registered under my name as a sole propietor. So what is the template that I should follow for invoicing?

Thank You,

Clement

Ans 1) Yes you have to compulsarily register and pay taxes, since you are supplying through e-commerce operator. This is irrespective of the value of your turnover.

Ans 2) Yes the e-commerce passes on the information using your GSTIN by filing their return.

Ans 3) First find out the HSN code and rate of the product, then find out the situation as to whether CGST&SGST is chargeable or IGST and accordingly charge such on the taxable value. This is a broad concept which cannot be discussed fully here. Hire a consultant if you have various types of transaction.

Ans 4) Yes tax invoice is a must. Logo is not required, an invoice must contain the necessary fields mentioned in rule 46 of CGST Rules, rest you can design the invoice as per your choice.