Understand How GST will effect E-Commerce Websites
As we know that, everyone on the globe is using the internet and buy online today. If we focus on the e- commerce business in India then we will find that e-commerce market is estimated to have crossed Rs. 211,005 crore in December 2016. And this will reach up to $100 million till 2020. So, the Finance Ministry launches a Tax Act which is commonly known as GST. The means reason of applying this tax collection processor to cease tax stealing chain which is running in very small and large chain And this GST will replace CENVAT, excise, customs, VAT, state excise, etc. that means all the Central and state indirect taxes. The candidates those wants at run their business happily. They have to apply for GST. So, below we will elaborate the whole thing about GST.
Why we need to fill GST
The candidates those running their business from long time they also are known for tax. But some of the business don’t have known about all the taxes these are applied on them and the result of this they forgot to pay every tax on time. To remove this drawback in the tax process and to make it simple, the government of India launches GST and the law is passed by the finance ministry of India. So we have to pay only one Tax this time and no need to remember or pay other tax such as excise, customs, VAT, state excise, etc. So, we can say that the life becomes simpler after launching GST.
Who has to fill GST
The candidates those are running their business on small scale or on a large scale. They must be thinking about the GST and its procedure. Because they want to run their business without any worry. Below, we are describing who has to pay GST or on which types of business GST applied:
GST on Offline Business
The candidates those are running their business offline are also comes under the GST. This Good Service Tax will be applied to the people those are running a business and having turnover equivalent or more than 20 lakhs. While the businessman’s those are running their business in the North Eastern States and their turnover is more than 10laks rupees will also come under the effect of GST.
GST Effect on E-commerce Business
The candidates those are running their business of Trussville carpets & rugs, clothes, home decor or any other business like Amazon, Flipkart, shop clues, then they are majorly affected by GST launch. Because before applying GST they are safe from paying tax because they are the intermediate part in between Service Provider and Receiver as shown in the figure below:
As you can see in above page, there are two people standing, facing each other. One of them is Service Provider and another is Service Receiver and the box you can see is an Operator that means any E- commerce website such as Rugsville, Flipkart, Amazon, etc. Where people by Trussville kids, designer, modern area rugs, carpets for the living room, drawing room online India. If you are also running e-commerce websites like them and selling T-shirts, shirts, saree, clothes, jeans, etc. then you also come under GST.
How we will pay GST
There is two types taxation procedure followed by India. So, the candidates those want to understand these candidates needs to read this blog carefully.
Types of Taxation:
There are 3 types of Taxation process accepted by India which is described below:
- Normal Charge: In this taxation process. The Tax is paid by the service receiver. To understand the whole process we need to take an example. Suppose you buy something online or offline. Whenever you received the product the bill will be also provided by them. If you will see that the payment is paid by you with tax. So, we can say that you paid tax. The paid tax by you will directly submit to the government fund on same time of purchasing
- Reverse Charge: This taxation process is very simple to understand because, in this, the tax is paid by the customers after purchasing & receiving their products. But, this taxation Process is found inappropriate to apply. Because it is not possible to take tax from each customer
- Normal and Reverse Charge: It is the combination of both taxation process.
The GST is a Normal Charge type. So, we can say that the GST will directly paid by the user, source (e-commerce website owner) so don’t to worry.
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