Relation Between GST & Ecommerce
Online Business or popularly remarked as Ecommerce is growing at a fast pace in India. It is assumed the numbers would grow to even a bigger extent in the upcoming years.
Due to such an increase in the online shopping business and people’s interest in preferring digital world interaction for buying goods & services, the Government Of India has provided some special provisions & regulations for online businesses under GST, and they are mandatory.
Generally in India, under GST, some special sections of the society like North-eastern state business owners who earn less than 20lakh annually do not need to register for GST. However, this is not the case for online businesses.
Under GST in India, you need to register and pay GST if you own an online business. It does not matter if you make less than one lakh annually, you need to pay the tax. Furthermore, you need to pay taxes on all qualified sales and file for monthly returns as well.
So if you ever had a misconception that you are a small online business owner and you do not need to worry about tax, now is the time to go get GST registration for your business.
GST Registration For Online Business
With the Indian eCommerce world increasing on a rapid scale, the Government Of India when introduced GST in 2017 also considered online businesses. Resultant of this, special guidelines for E-commerce were introduced in the CGST Act, 2017.
As stated above, an online business owner or an Ecommerce operator must get GST registration regardless of their income, and the ownership of the goods supplied.
In the online business, the E-commerce operator is liable to pay tax on the behalf of its suppliers.
It does not matter if the E-commerce operator is only supplying the goods & services, he needs to pay GST.
If the E-commerce operator is also the owner of the service, then also he needs to pay the GST.
Steps For GST Registration In India
So far, you may now have the idea if you need to register for GST or not. If you do, below we have a simple step-by-step guide that will assist you in registering for the GST.
Step 1: GST Portal
The first thing that you need to do is go to the GST Portal and start the new registration.
Access the GST Portal ->https://www.gst.gov.in/ > Services -> Registration > New Registration option.
Step 2: Generate TRN (Temporary Registration Number) With OTP Validation
In the next step, you need to fill up the GST application using the TRN. To generate TRN, you need a valid Indian mobile number, email address, and a PAN for your business.
On the registration page, fill in all the requested details and then click proceed.
You will receive OTP on your registered mobile number & email.
On completing OTP verification, a TRN will be generated, and now you can use it to complete and submit the GST registration application.
Step 3: Log In With TRN
Now click Proceed or Services > Registration > New Registration option and select the Temporary Reference Number (TRN) button to log in using the TRN.
Fill generated TRN in the required field and enter the captcha text as shown on the page.
Complete the OTP verification on email & mobile.
Now click on the edit button under the “Action” column to start the GST registration process.
Step 4: Submit Your Business Detail
Under this step, the website will ask you for all the crucial details about your business that need to be submitted to obtain the GST registration.
Fill in all the details one by one and proceed further.
Step 5: Submit Partners Details
In the next step of the process, you need to provide the partner’s or promoter’s details. If there is a case of proprietorship, then the proprietors’ information needs to be submitted.
You can submit up to 10 partners’ details in a single GST registration application.
Step 6: Details of Authorised Signatory
The next details for you to fill up is about the authorized signatory, who is a nominated person by all the partners of the company.
Remember, an authorized signatory will have complete access to the GST Portal.
Step 7: Primary Place Of Business
Under this section, you need to provide details about the primary location of your business within the state where you operate your business.
Address of the principal place of business.
Official contact such as Email address, telephone number (with STD Code), mobile number field, and fax number (with STD Code).
Nature of possession of the premises.
Along with this, you also need to upload documents to provide proof of ownership or occupancy of the property.
Step 8: Another Place Of Business
In this section, enter the details of an additional place of your business, if any.
Step 9: Details of Goods & Services
In this part of the registration, you must provide complete details of the top five services & goods that are provided by your business.
If you supply goods, provide the HSN code.
If you supply services, provide a SAC code.
Step 10: Bank Account Details
Now is the time to fill in your bank account details of all the accounts associated with your business.
At last, upload a copy of the passbook or bank statement.
Step 11: Verify Your Application
In this step, verify all the details entered by you before the final submission. After the verification:
Select the name of the authorized signatory
Digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC.
Remember that digitally signing n the case of LLP and Companies is mandatory using DSC.
Step 12: ARN Generation
After you sign the application, you shall receive the acknowledgment via your registered email & mobile number.
You will receive the Application Reference Number (ARN) via both the mediums- email & mobile phone number.
This ARN number can be used to track the status of your GST application.
GST is crucial for both offline and online businesses in India. The above-mentioned guide helps you understand what GST is, why you need it for your online business, and how you can apply for GST for it.