SuperNuvos (Own) 21 December 2019

gstin requirement

Hello Experts:

My mother (senior citizen) wants to sell her painting through online retailers like flipkart,amzon etc... It is mentioned that she needs ot have a GSTIN. Currently, she doesn't have any revenue whatsover. However, even if she starts selling, it may exceed 1 lac of revenue in coming year.

I need on advice on what points have to kept in mind from taxation perspectives while she starts online business.

1. GSTIN registeration : Is it required?

2. Does she need to file return regulalrly even if she doesnt start selling for couple of months to start with?

3. Any other points to be kept in mind.

Regards

Nuvo

Reply Follow

4 Replies

Pramod Ramkumar 21 December 2019

An aggregator is a website like Flipkart, which connects buyers and sellers and takes a commission on each sale. Since they don’t always sell the products directly to customers, these types of e-commerce businesses must handle GST differently. This happens with a tax collected at source, or TCS. When your website facilitates a sale between a buyer and a seller, GST law requires you to deduct 2% of the sale before you send payment to the seller. You must pay that amount to the government. Then, your sellers can claim that tax as a deduction on their own GST filings.

Pramod Ramkumar 21 December 2019

If you’re an aggregator, both you and your sellers must report all sales to the government. Your reports and their reports must match exactly. If they don’t, your sellers are responsible for the outstanding GST. The TCS requirement helps you spot and remove sellers who aren’t reporting sales accurately.

Pramod Ramkumar 21 December 2019

since they have to collect TCS at speciified rates its mandatory for one to have GSTIN and only Regular scheme of registration is available and even if your turnover is Rs.10 still it's a must to have GSTIN to sell with online aggregators, However you can claim the Input of TCS while filing your GST returns and the sale value of painting also too attracts GST

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 23 December 2019

n the GST Regime, businesses whose turnover exceeds Rs. 40 lakhs* (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.

Query >online sale > gstin requirement

4 Replies

Leave a reply

Recent Topics

Popular Discussion

Browse by Category