GST Composition Scheme: Simplified Tax for E-commerce & Small Suppliers

The Central Government, acting on the recommendations of the GST Council, has issued a set of significant notifications, bringing about changes that will impact electronic commerce operators and businesses operating in the e-commerce space. These changes are set to take effect on October 1, 2023.

Can a composition scheme dealer sell online?

Notification No. 36/2023 - Central Tax (Dated: August 4, 2023):

According to this composition scheme dealer can sell online within same state. This notification outlines a special procedure for electronic commerce operators in India.

It restricts them from facilitating inter-State supply of goods by persons paying tax under Section 10 of the Central Goods and Services Tax Act.

Electronic commerce operators are required to collect tax at source for such supplies and file the details electronically in FORM GSTR-8.

These changes aim to ensure smoother tax collection and reporting, particularly for composition scheme dealers.

The effective date of this notification is October 1, 2023.

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Can I sell on Amazon without GST?

Yes you can sell online without GST after obtaining enrolment number from portal.

Notification No. 37/2023 - Central Tax (Dated: August 4, 2023):

Notification No. 37/2023 focuses on electronic commerce operators required to collect tax at source under Section 52. It pertains to the supply of goods made by individuals or businesses exempted from obtaining registration. The key provisions include:

• Enrolment Requirement: Electronic commerce operators can allow supply of goods only if the exempted person has an allotted enrolment number on the common portal.
• Inter-State Supply Restriction: Similar to the previous notification, there is a restriction on inter-State supply facilitated by these operators.
• No Tax Collection at Source: In this case, electronic commerce operators are not required to collect tax at source for such supplies.
• Mandatory Reporting: Operators must furnish details of these supplies in FORM GSTR-8 electronically on the common portal.

These measures are designed to provide more clarity and regulation for tax-exempt entities utilizing e-commerce platforms.

Effective from October 1, 2023.

Is GST mandatory for Amazon seller?

It is not mandatory to have GST registration for selling online. However you need to obtain enrolment number from GST portal and must have PAN card.

Notification No. 34/2023 - Central Tax (Dated: July 31, 2023):

This notification exempts certain persons making supplies through electronic commerce operators from obtaining registration under the Central Goods and Services Tax Act.

• No Inter-State Supply: These persons are not allowed to make inter-State supply of goods.
• Single-State or Union Territory Supply: They can only make supplies through electronic commerce operators in one State or Union Territory.
• Permanent Account Number (PAN) Requirement: A valid PAN issued under the Income Tax Act is mandatory.
• Enrolment Number: Before making any supply, these individuals or entities must declare their PAN, business address, and the relevant State or Union Territory on the common portal and obtain an enrolment number.
• No Multiple Enrolment Numbers: They are not allowed to have more than one enrolment number in a single State or Union Territory.
• Ceasing of Enrolment: If they are subsequently granted registration under Section 25 of the said Act, their enrolment number will cease to be valid.

The notification takes effect on October 1, 2023,

These notifications introduce specific procedures and conditions for electronic commerce operators and persons making supplies through them, aiming to streamline the taxation process and ensure compliance. Compliance with these procedures is crucial for businesses involved in e-commerce and tax collection.

Feel free to contact us for any support or queries. Contact  📞 +91 9398991181

Frequently asked questions:-

1. Is GST mandatory for e-commerce sellers?
2. Can I sell online with composition scheme?
3. Can a composition dealer sell on Zomato?
4. Can e-commerce suppliers register under the composition scheme of GST?
5. Is GST mandatory for Amazon seller?
6. Can I sell on Amazon without GST?
7. Can a composition dealer sell on Amazon?
8. Can E-Commerce seller apply for Composition Scheme under GST Registration?