GST Enrolment for my E-Commerce Startup


#1

Good Evening friends!

I have just registered my LLP and received my PAN. I plan on designing & developing products and later selling them in the market via a personal E-commerce website. Soon i will apply for IE code.

Should i apply for voluntary VAT No. ? or GST ? which is commencing in july ? (which means i wait for the business to start in july)

Now that i haven’t started (zero turnover), do i actually need to apply for VAT/GST before i start selling my products online ?

A genuine help/guidance on the same topic would be much appreciated.

Thanks.


#2

GST will apply when turnover of the business exceeds Rs 20 lakhs (Limit is Rs 10 lakhs for the North Eastern States).

So, I guess there is no need to apply for GST/VAT till you exceeds Rs. 20 Lakh limit.


#3

No need for GST Registration till you exceeds Rs. 20 Lakh limit.


#4

I have one question also regarding the same case.

E-commerce marketplace like Flipkart & Amazon require VAT no. to sell onto their platform then how can we proceed without GST/VAT?

On the other hand, VAT is also required if we import, regardless what the turnover is. E.g. Nheva Seva, Mumbai Port required VAT Number along with IEC n all.

How can we operate business until 20 lakhs turnover without GST/VAT despite of all above issue???


#5

Even if i operate via ecommerce ? and the products are sold outside my state (within country) ?


#6

Exactly ! E-commerce requires VAT regardless of the turnover. what exactly can be the case when GST is involved ?


#7

Something I stumbled upon on the internet,

Which are the cases in which GST registration is compulsory?

As per paragraph 5 in Schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services other than branded services, through electronic
commerce operator;
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.


#8

I think this solves everything :blush:

Kindly go through the article…


#9

There is also a notification under the exempted categories of GST, where if you are incubated by any of the designated startup incubators, you are exempt from GST upto Rs.50 lakhs turnover