Ruchi Verma The Goods and Services Tax (GST) regime has made e-commerce online selling significantly easier by merging all indirect taxes into one unified structure. Online businesses registered with annual turnover over Rs. 20 lakhs must obtain GST registration compulsorily before transacting via leading e-commerce portals.
This article equips e-commerce sellers with documentation of all essential GST application procedures, plus ongoing compliance needs for online selling through online platforms.
Prerequisites for GST Application
Collect key personal identification and business documents before GST signup for online selling:
Personal Documents:
- A scanned copy of the signed PAN card
- Aadhaar card issued by UIDAI
- Email address and active Indian mobile number
Business Verification Papers:
- Proof of business location (lease agreements, sale deeds, utility bills, etc.)
- Business incorporation documents (partnership deed, Certificate of Incorporation, etc.)
- Bank account statement/passbook copy
- Digital Signature Certificate (DSC), as applicable
Additionally, identify relevant Harmonized System of Nomenclature (HSN) codes aligning with the goods and services you supply. This aids proper classification and applicable GST rate determinations during invoice generation by specifying product categories.
GST Registration Process
Follow these key steps to complete a new registration for online selling:
- Create User Profile: Visit gst.gov.in to initiate registration and submit essential PAN and Aadhaar details via email and SMS after OTP validation.
- Specify Business Details: Next, correctly classify your business structure and provide crucial information like expected annual turnover, principal place of business address, contact numbers, and existing tax registrations.
- Authorised Signatories: Formally add partners, directors, and executives legally responsible for GST management as authorised signatories through Aadhaar-based e-verification.
- Determine Registration Needs: Answer key questions about your e-commerce operations that determine precise registration liability under GST laws.
- Upload Supporting Papers: Provide all collected business papers digitally as attachments backing details furnished across prior sections.
- Pay Fee & Submit: Preview final application details before paying the calculated registration fee as per the turnover slab and submitting a request.
- Onboarding: Post registration approval, expect your signed GST certificate containing active GST Identification Number (GSTIN) within 5-7 working days. Share this 15-digit ID on all Seller Hub transactions.
GST Compliance for Sellers
- Returns Filing: File monthly GSTR-1 returns capturing e-commerce order values by the 11th of next month. Additionally, submit GSTR-3B returns with auto-populated GST liability by the 20th.
- Invoice Generation: Ensure all digitally generated sales invoices correctly capture customers’ GSTINs, product HSN codes, and your GSTIN, apart from order values.
- Input Tax Credits: Continually claim eligible input credits for procurements supporting business operations to reduce tax liability.
- Interest & Late Fee Avoidance: Make monthly tax payments digitally through NEFT/RTGS modes by the 20th to bypass interest charges under GST law.
By furnishing correct GST returns promptly and maintaining diligent digital documentation, e-commerce enterprises can continue smooth GST compliance and unlock crucial advantages like input credits while retailing online via Flipkart Seller Hub.
Also Read: Why Businesses Need Finance?
Conclusion
E-commerce platforms provide extensive handholding for completing GST application formalities seamlessly, covering documentation support, HSN code assistance, and compliance management for running e-commerce operations while meeting taxation needs.
© Ruchi Verma
Disclaimer: This article is not published as financial advice or any other financial legal issue. This post is written as an informational part, please read all guidelines carefully before investing in financial transactions. We recommend you consult your financial planner before investing in any financial decisions.
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This is a very comprehensive and informative post. Very easy to understand too for those seeking to apply for GST. I always had doubts about the entire process, the prerequisites, the application process, etc. Reading your post has cleared all my doubts, thanks for sharing this valuable information.
It has been 4 Years since we registered for GSTN for our family business, back then the process was not as clear as you have mentioned in your post. So our CA charged a hefty fee for that. Now anyone can do it following the steps you have mentioned. The documents you have mentioned are enough to obtain GSTN and yes, compliance. Filing returns on time and uploading the vouchers timely is also important to claim the credit. A very insightful post.
I had many doubts about the entire process, including the prerequisites and the application steps. However, reading your post has resolved all my uncertainties. Thank you for sharing this valuable information on GST essentials for all.
What a fantastic and timely blog post, Ruchi! “GST Essentials” is an incredibly valuable resource for anyone navigating the complexities of GST application procedures. Your clear explanations and practical tips make a complicated topic much more accessible. This information will undoubtedly help many people streamline their GST processes. Great job!
Thank you so much for such informative post. Really helpful for all GST information . Everything is so well put and written to get all things sorted about GST