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GST Rule for e-commerce Business

268 views 4 replies

Rishi Goyal

45 Points Posted on 21 September 2021

Hi all,

I am planning to start a e-commerce portal to sell product of women sellers. But instead of charging commission I want to sell it free or may be a small Sign up fee I will charge.

My question is:

1. If am not charging any commission on any sales (means 100% passing sales amount to vendor), Can I do it?

2. The amount (total sales consideration) in my current bank account collected on behalf of sellers (for the time being) will be shown under which head as it will be there for lets say 15 days till order is delivered.

Replies (4)

Lalitha y

39 Points Posted on 22 September 2021

Hello Sir
1. you can provide the platform for sale without any consideration. As there is no consideration it won't be treated as supply and there is no GST levy on the same. However you need to deduct TCS at 1% and pay to the government on sales made through your e commerce platform

Rishi Goyal

45 Points Posted on 22 September 2021

Thanks,

Consideration am taking in he form of one time set up fee at time time of account creation but not charging commission on every order. So, will it be sales without consideration?

Lalitha y

39 Points Posted on 22 September 2021

You need to pay gst on that set up fee as it is consideration for use of your platform.

Rishi Goyal

45 Points Posted on 22 September 2021

Thanks a Lot for Clarification !!

The amount am collected ob half of Sellers will be shown in my book as Liability? and Wht if I earn interest on that amount under what head would that come in my ITR?