Compliances of E-commerce operator

Compliances of E-commerce operator

Compliances of E-commerce operator vary by region and by industry, and it’s essential for e-commerce operators to stay informed about the specific compliance requirements that apply to their business.


What is E-commerce?

Ecommerce as it is popularly known is buying and selling of goods and services via the internet. Ecommerce generally refers to the transactions made during the online trading of goods and services.

So, basically when you as an individual or as an organization engage in the purchase or sale of goods and services online, you are engaging in Ecommerce.

Is GST Required for E-commerce seller?

From the perspective of GST registration requirement, E-commerce sellers has to be categorized as Supplier of goods & Supplier of services, since the registration requirement varies depending on whether it is a business of supplying goods or services.

1. Supplier of goods For a supplier of goods, GST registration is mandatory. There is no turnover threshold exemption available for this category.

2. Supplier of services

For a supplier of services, GST registration is mandatory only if they are having turnover more than the GST turnover exemption of Rs 20 lakhs.

However, supplier of services specifically mentioned in section 9(5) of GST Act do not require mandatory GST registration. Illustratively such service providers are-

a. Those providing service of passenger transportation through an e-commerce operator like OLA, UBER etc.

b. Hotel service providers through aggregator platforms.

c. Housekeeping service providers through aggregator platforms like Urban company

What are the GST Returns to be filed?

GSTR 1 & GSTR 3B GSTR 1 & 3B are regular or periodic returns. These are required to be filed monthly or quarterly depending upon the turnover of the business. Businesses having turnover up to Rs 5 crores can opt for the QRMP scheme which will require them to file these returns quarterly

GSTR-1 return requires the details of the outward supplies made in a specific period. Since e-commerce business would practically sell to consumers all around the country, they are required to report GST taxable amount & taxes state & rate wise.

While GSTR 3B is a summary returns, which requires the business the report their liabilities & ITC credit claim & reversal.

Though B2C Interstate sales are also required to be reported state wise in GSTR 3b as well.

Annual return GSTR-9 & 9C GST annual return GSTR 9 is an annual reconciliation statement to be filed by businesses having annual turnover of over Rs 2 crores.

GST annual return GSTR 9C is to be filed by businesses having annual turnover of over Rs 5 crores.

What is TDS & TCS Credit claim

Since e-commerce marketplace or e-commerce operators are required to collect TCS from sellers which is further reported by them in GSTR-8 by the E-commerce operators, an e-commerce seller is required to claim this credit by filing the claim return.

Sales Returns & credit notes

Returns are a regular feature in e-commerce, consumers buy & return the product more often than brick & mortar shops.

This has an impact on the sales value, GST liability, GST ITC credit (due to reversal of fees by e-commerce market place).

Thus, a e-commerce business is required to take extra care of these returns & assure that correct GST liability is reported, only eligible ITC are claimed & accurate ITC reversals are done.

TDS by e-commerce operator

Income tax Act requires E-commerce operators to deduct TDS on payments made to e-commerce sellers under Sec 194O of income tax act at 1%, if gross amount of sale of goods or services is more than Rs 5 lakhs.

Since, E-commerce operators would deduct TDS & report the same in their TDS returns, these could be claimed by E-commerce sellers in settling their income tax liability at the time of filing ITR.

TDS by e-commerce seller

This is one of the most neglected areas by e-commerce businesses. A bundle of payments is made by e-commerce businesses to E-commerce operators & other parties as well for various expenses but seldom do they comply with TDS deduction for payments made which is required by income tax act.

One of the important causes of the negligence is because the E-commerce marketplace settles the payment to e-commerce sellers net of their various fees charged to the sellers.

Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.We register business online and save time & paperwork.

Reno K Subramaniam
Reno K Subramaniam
I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
pankaj tiwari
pankaj tiwari
Legal suvidha is a team of genuine and experienced professionals who give you best services according to your profile
Raman Krishnan
Raman Krishnan
Saloni from legalsuvidha has done a excellent job for filling and geting certificate of DPIIT. Thanks to legalsuvidha.
Prakaash Hari
Prakaash Hari
Team Legal Suvidha offers a brilliant service. There communication is quite clear and they execute the job meticulously. We are a startup private limited company and their advice is so critical in making my decision. Well done team. Keep it up. Prakaash Hari, Director, ipixela.
Priyanka Rudra
Priyanka Rudra
Dedicated team and fast response
Dr. Vishal Ghag
Dr. Vishal Ghag
Been using their services since 3 years now and I am absolutely happy with Legal Suvidha. They have been supportive, understanding and highly skilled at helping me with my business needs.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.