GST Registration for E-Commerce Players

As one may be aware, the Government has specified a turnover threshold limit for GST registration for businesses – INR 10 Lakh in Special Category States and INR 20 Lakh in Rest of India. However, there are certain entities who are required to take mandatory registration under GST, even though their turnover is below the prescribed limit. E-Commerce players are one of them, as per the norms of GST for online sellers.

Not just that, e-commerce players also do not have an option to go for the composition scheme. This means, that even if the turnover of an e-commerce supplier is below the composition limit of 1 Crore, he will still need to register as a regular dealer under GST .

While the implications of GST for e-commerce sellers – small or big – are many, what remains most important is – that such players need to be thorough with the GST registration process.

Let us go through the process of GST registration for e-commerce – for both players: Aggregators and Suppliers:

GST registration for e-commerce aggregators

E-commerce aggregators are responsible under the GST law for collecting and depositing tax at the rate of 1% from each online transaction. Thus, any e-commerce supplier would get the payment only after deduction of 1% of TCS by the e-commerce operator under GST.

Thus, e-commerce aggregators will need to follow the same GST registration process, as applicable for all taxpayers who are liable to deduct TDS or TCS. The steps for e-commerce GST registration are as follows:

Applying for registration

  • Any person who is required to deduct TDS or collect TCS will electronically submit an application for registration, duly signed or verified through EVC (electronic verification code), using the FORM GSTREG-07 on the GST Portal; either directly or from a facilitation centre notified by the Commissioner.
  • The proper officer will grant registration after verification and issue a certificate of registration in FORM GST REG-06 within 3 working days from the date of submission of application.

Cancellation of registration

  • If the proper officer enquires or ascertains through a proceeding that a person is no longer liable to deduct TDS or collect TCS, then the officer will cancel the registration. The cancellation shall be communicated to the said person electronically in FORM GST REG-08.
  • The officer will follow the same procedure for cancellation as for normal taxpayers.

GST registration for e-commerce suppliers

The process of GST registration for e-commerce suppliers is the same as for a regular dealer supplying taxable goods and/or services in the GST era.

Applying for registration

  • All e-commerce suppliers will need to fill Part-A of FORM GST REG-01, by providing PAN, mobile number, and e-mail ID. The PAN is verified on the GST Portal, while mobile number and e-mail ID are verified with a one-time password (OTP). Post this, an application reference number (ARN) will be received via mobile and e-mail.
  • Next, Part- B of FORM GST REG-01 will need to be filled by specifying the application reference number received. Other relevant documents, will need to be attached and uploaded, such as:
    • Photographs: Photographs of proprietor, partners, managing trustee, committee etc. and authorized signatory
    • Constitution of Taxpayer: Partnership deed, registration certificate or other proof of constitution
    • Proof of principal / additional place of business: Latest Property Tax Receipt or Municipal Khata or Electricity Bill (for own premises); Rent / Lease Agreement along with owner’s documents (for rented premises)
    • Bank account related proof: Scanned copy of the first page of bank pass book or bank statement
    • Authorization forms: For each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format.
  • If additional information is required, FORM GST REG-03 will be issued. Within 7 days of receipt, one needs to respond in FORM GST REG-04 with the required information.
  • If one has provided all the required information via FORM GST REG-01 or FORM GST REG-04, a certificate of registration in FORM GST REG-06 will be issued within 3 days.

Cancellation of registration

If the details submitted are not satisfactory, the registration application is rejected using FORM GST REG-05.

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