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  26 Jun 2020  What is GSTR-1, and is GST filing for Amazon sellers mandatory?

What is GSTR-1, and is GST filing for Amazon sellers mandatory?

SPOTLIGHT
Published : Jun 26, 2020, 5:22 pm IST
Updated : Jun 26, 2020, 7:43 pm IST

The GST law needs the online sellers to do the GST registration and to file each month their returns

GST Registration is easy. It is possible due to the GST portal of the government. It permits you to complete the process online
 GST Registration is easy. It is possible due to the GST portal of the government. It permits you to complete the process online

Selling on Amazon your products involve the Goods and Services Tax. The GST is beneficial as it removes all other taxes, inclusive of the state and VAT taxes.

It is a breeze sale by shipping internationally or across state lines. Amazon, the eCommerce giant, stays compliant, and it is a must to know how to file GSTR 1 for amazon seller. Knowing it means you may adjust the accounting systems and prices accordingly.

 

Who needs GST Registration as Amazon Sellers?

The GST law needs the online sellers to do the GST registration and to file each month their returns.

Regardless of what you earn, it may be Rs.10,000 or Rs.10,00,000. There is a requirement to pay GST. There are few mandatory requirments to register as a seller on amazon.in and you can find a complete guide at revExpo.com to complete seller registration. The sellers of Amazon require to offer a GSTIN so that the business keeps going on.

The only way to avoid GST filing for amazon sellers is when all your products are tax-free. The items qualifying as GST free include the Indian flag, animal feed, plastic bangles, and Khadi yarn.

 

What are the steps to get GST Registration?

GST Registration is easy. It is possible due to the GST portal of the government. It permits you to complete the process online.

Thus, you get a TRN, a Temporary Registration Number. It is useful for email, mobile number, and as a permanent account number. You can also use the TRN to start the application. In this way, you get 15 days to apply for GST before the expiry of TRN.

However, to fill the application, there is a need to be ready with these:

Proof of the business place. The documents accepted are property tax receipts, electricity bills, municipal account deeds, copies, or rental agreements.

 

Goods and services list including all the things that you are selling on the Amazon account. Bank account number in India.

Who should pay GST?

There is confusion always that who should pay GST? The answer is that the GST must be paid by the seller on the sales made.

The concept is the seller is directly selling to the buyer. While Amazon is working as a commission agent. Thus, it is the seller who must pay GST and it is not the responsibility of Amazon.

Advantages on filing the GST Return:

Low taxes
Unified platform
Ease of operating business
Subsuming taxes
Larger tax base

What is the commission?

A percentage on the sale price is a commission on the online platform from the seller. This percentage relies on the goods category and the platform it is sold.

 

The platform charges 18% GST on such commissions, and there is an input tax credit taken by the seller of such GST.
 
The e-Commerce platforms release credit notes for the charges or commission they must pay. Thus, GST gets reduced from the GST invoices based on the credit notes, and the input credit of the tax arrives.
 
Platform issues invoices for delivery charges, advertisement charges, and other charges. Input credit is claimed for all such expenses.
 
Creating invoices that are GST-Compliant for Amazon sales
 
GST affects the invoicing of Amazon customers. There are two invoice types you need:
 
Taxable invoice: It charges tax to your buyer and includes GST required information.
Bill of supply: Use to shipGST-exempt products.
 
If Amazon listings facilitate easy to ship, use the platforms invoicing tool conveniently. It generates an invoice that is GST-compliant automatically and adds the GST rate correctly for the product type.

 

It is an ideal option for a casual seller. In a full-fledged business, generating invoices is possible using some third-party software for online accounting.

It ensures the accounts and record-keeping are more accurate.

Importantly, revise the return once submitted and make the corrections in the GSTR-1 next month.

Disclaimer: No Asian Age journalist was involved in creating this content. The group also takes no responsibility for this content.

Tags: amazon seller support, gst