Compliances for E-commerce Operators Participants under GST Income Tax

E-commerce has revolutionized the way people shop, connect, and communicate. It has become an integral part of our lives and has transformed the way businesses operate. With the growth of the e-commerce industry, the government of India has introduced various compliances that e-commerce operators and participants need to follow to ensure that they are compliant with the law.

Compliances under GST

GST or Goods and Services Tax is a destination-based tax that has replaced many indirect taxes in India. It is a comprehensive tax that is levied on the supply of goods and services across India. E-commerce operators and participants are required to comply with GST regulations. Here are some GST compliances that e-commerce operators and participants need to follow:

1. Registration under GST

E-commerce operators and participants must register themselves under GST if their aggregate turnover exceeds Rs. 20 lakhs. If the e-commerce operator is not registered under GST, they will be liable to pay a penalty. Therefore, it is mandatory for e-commerce operators and participants to register themselves under GST.

2. Collection of GST

E-commerce operators are required to collect GST from customers on the supply of goods and services. The GST collected by the e-commerce operator needs to be deposited with the government. The e-commerce operator must file the GSTR-8 return to report the amount of GST collected and paid during a particular month.

3. TCS (Tax Collection at Source)

TCS is a 1% tax that is collected by the e-commerce operator from the supplier of goods and services. The TCS collected must be deposited with the government by the e-commerce operator. The supplier can claim a credit of the TCS against the output tax liability.

4. Filing of Returns

E-commerce operators are required to file GSTR-8 return to report the amount of GST collected and paid during a particular month. The return must be filed on the 10th of every month for the previous month.

5. Input Tax Credit

E-commerce operators are eligible to claim input tax credit on the GST paid on the goods and services purchased for business purposes. However, they cannot claim input tax credit on the GST paid on goods and services used for personal use.

Compliances under Income Tax

E-commerce operators and participants are also required to comply with the Income Tax Act. Here are some compliances that e-commerce operators and participants need to follow:

1. Registration under Income Tax

E-commerce operators and participants must register themselves under the Income Tax Act if their total income exceeds the basic exemption limit. The basic exemption limit for the financial year 2021-22 is Rs. 2.5 lakhs for individuals and HUFs, Rs. 3 lakhs for senior citizens and Rs. 5 lakhs for super senior citizens.

2. Filing of Income Tax Returns

E-commerce operators and participants must file their income tax returns on or before the due date. The due date for filing income tax returns for the financial year 2020-21 is 31st July 2021. E-commerce operators and participants must file their income tax returns electronically.

3. TDS (Tax Deducted at Source)

E-commerce operators are required to deduct TDS on the payments made to the suppliers for the goods and services sold through the e-commerce platform. The TDS deducted must be deposited with the government by the e-commerce operator.

4. Tax Audit

E-commerce operators whose turnover exceeds Rs. 1 crore are required to get their accounts audited by a chartered accountant. The due date for filing the tax audit report is 30th September of the assessment year.

Conclusion

Compliances under GST and Income Tax are mandatory for e-commerce operators and participants. Failure to comply with these compliances can result in penalties and legal consequences. Therefore, it is important for e-commerce operators and participants to understand and comply with the GST and Income Tax regulations.