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Flipkart GST Registration

Flipkart GST Registration

Flipkart GST Registration

If you are a Flipkart seller, GST registration is essential to comply with the Indian tax system. GST, a tax on the value added to goods and services, applies to all supply chain stages—from production to distribution to consumption. GST Registration primarily involves obtaining a Goods and Services Tax Identification Number (GSTIN), a crucial identifier for businesses registered under the Goods and Services Tax (GST) regime. E-commerce platforms now mandate the possession of a GSTIN as a prerequisite for listing goods on their sites. IndiaFilings provides a streamlined Flipkart GST registration service, catering to sellers in the North, West, and South zones through the Basics package and those in the East zone through the Standard package.

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GST Registration  for Flipkart Sellers

Registration for GST is obligatory for individuals or entities engaged in the supply of goods or services with an annual turnover surpassing the prescribed threshold limit. Flipkart, an online marketplace, facilitates sellers in showcasing and selling their products. As a Flipkart seller, GST registration becomes mandatory if your annual turnover exceeds the GST threshold of Rs. 40 lakhs (for goods) or Rs. 20 lakhs (for services).

For Flipkart sellers, GST registration holds significance by ensuring adherence to tax regulations, mitigating tax liabilities, bolstering credibility, and unlocking avenues for expansion.

GSTIN Number for Flipkart Seller

For a Flipkart seller, obtaining a GSTIN number is a prerequisite to listing and selling products on the platform. This requirement stems from the obligation to remit Goods and Services Tax (GST) to the government based on the sales made. Selling on Flipkart provides access to millions of buyers within India and globally.

The Significance of GSTIN for Flipkart Sellers

As a Flipkart seller, possessing a GSTIN is mandatory due to government regulations applicable to businesses engaged in taxable supplies of goods and services. GST registration becomes obligatory if your turnover exceeds the specified threshold while selling goods on Flipkart.

It’s important to note that you are not required to register for GST if you sell exempted goods exclusively on Flipkart. However, for all other products, GST registration is a mandatory requirement.

Possessing a GSTIN has advantages, including seamlessly utilizing input tax credits under the GST framework. This allows you to offset the GST payable on your sales by claiming credit for the GST paid on your purchases. Such a mechanism can reduce tax liability and enhance cash flow.

Having a GSTIN is crucial for Flipkart sellers aiming to comply with GST regulations, avoid penalties for non-compliance, and capitalize on the benefits offered within the GST framework.

Flipkart GST Registration Guidelines

GST registration is obligatory if you sell goods on Flipkart or any other e-commerce platform, and securing a GST Identification Number (GSTIN) is a prerequisite. The standard exemption limits of Rs. 40 lakhs (for normal category states) and Rs. 20 lakhs (for northeastern states) do not apply to online sellers. Registration on online selling platforms is exclusive to those already registered under GST. Let’s explore the registration requirements across different scenarios:

Already Registered under GST

If you are already registered under GST, you can seamlessly continue your registration without further changes or intimations. However, switching to the standard scheme is mandatory if initially written under the composition scheme.

Selling Exempted Goods Only

Sellers dealing exclusively in exempted goods can register on online selling platforms without obtaining a GSTIN. In other words, GST registration is not mandatory for sellers of exempted goods.

Business Operations Across Multiple States

For sellers conducting business across various states, registration for GST in each state from where supplies are made becomes imperative. This ensures compliance with state-specific regulations.

Place of Supply Differing from Office Location

In cases where the place of supply differs from the primary office or business location, GST registration is required in the state corresponding to the place of supply.

Place of Supply Guidelines for Flipkart Sellers

In the context of GST as a destination-based tax system, levies are imposed on goods and services based on their consumption location rather than origin. Thus, it is essential to ascertain the place of supply under GST, as it dictates the applicable tax type.

In instances where the supplier’s location aligns with the place of supply within the same state, both Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) come into effect.

Conversely, when the supplier’s location and the place of supply are distinct, the tax framework shifts to Integrated Goods and Service Tax (IGST).

GST Return Procedures for Flipkart Sellers

For Flipkart Sellers, the regular filing of GST returns, both monthly and annual, is mandatory.

Monthly Returns

  • Due Date: The 10th of each month marks the deadline for filing monthly returns.
  • GSTR-1 Form: This form should be filed, providing details of the goods and services supplied during the month.

Mid-Month Activities

Between 11th and 15th: It is crucial to file the GSTR-2 form during this period. This form encompasses details of the purchase of taxable goods and services and input tax supplies.

End-of-Month Procedures

By the 20th: Validate the GSTR-3 form and complete the necessary payments.

Annual Returns

Due Date: File the GSTR-9 form for annual returns by December 31st of the financial year.

Timely filing of GST returns is essential to avoid penalties and interest. Ensuring the accuracy and adherence to specified due dates is crucial to prevent complications.

Invoicing Guidelines for Flipkart Sellers

As a Flipkart seller, you might be curious about who bears the GST responsibility. The answer is that the seller must pay GST, considering the e-commerce operator’s role as a commission agent, bridging the gap between the buyer and the seller.

For Flipkart sellers, adherence to GST rules governing invoices is imperative. The GST Act and Rules outline specific invoice rules and formats that must be strictly followed. Invoices must provide a comprehensive list of goods detailing the amount due for each item.

There are two primary types of invoices under the GST framework:

  • Bill of Supply: No GST credit is passed on with this type of invoice.
  • Taxable Invoice: Issued to avail of GST credit.

As the seller, you are responsible for issuing a GST invoice to the buyer. This invoice should include your GSTIN, address, product specifics, quantity, tax rate, and tax payable. Fortunately, Flipkart simplifies this process by offering a feature that enables you to generate invoices directly on their platform. Subsequently, you can print the invoice and provide it to both the customer and along with the product.

A GST-compliant invoice must encompass the following key details:

  • Name
  • Location
  • GSTIN of the supplier
  • Invoice number and date
  • HSN Code
  • Recipient’s name and address
  • Delivery address
  • Place of supply
  • Taxable value
  • Rate and amount of GST
  • Description of products
  • Total value of goods, inclusive of taxes
  • A digital signature

Flipkart sellers must issue GST-compliant invoices to ensure adherence to GST regulations and maintain regulatory compliance.

Step By Step Process for GST Registration

Visit the official government website and complete the form available, which is divided into two major parts. Here’s a step-by-step guide on registering for GST:

Enter Identity Details

Begin by filling out ‘Part A’ of the form. Indicate taxpayer status and provide essential contact details such as mobile number, email address, and PAN. Include additional information like state, district, and business name.

Verify Email and Mobile

After submitting your email and mobile number, receive and enter OTPs on both platforms. Post verification, a Temporary Registration Number (TRN) is generated. Remember, ‘Part B’ must be completed within 15 days.

Enter TRN

Proceed by entering the TRN and completing the captcha process. Receive an OTP on your registered email and phone linked to your PAN. Fill it in the designated field and click ‘Proceed’ to create a successful application, completing ‘Part A.’

Enter Business Details

Input trade name, business constitution, district, and sector details. Include center jurisdiction, type, reason for registration, date of establishment, and date of liability.

Enter Proprietary Details

In this section, prepare personal information, identity details, and residential address. Upload a JPEG photograph (not exceeding 100 KB). If applicable, provide details of an authorized representative.

Enter Details about the Principal Place of Business

Provide information about the central business area, including address, contact details, nature of possession, and relevant document uploads. Specify the type of business activity conducted on the premises.

State-Specific Information

Enter state-specific details, including Professional Tax Employee Code Number, Professional Tax Registration Certificate Number, State Excise License Number, and details of the person holding the Excise License.

Complete the Final Verification

In the final step, enter the applicant’s name and registration place. Apply with a Digital Signature Certificate (DSC), e-signature, or Electronic Verification Code (EVC). DSC is mandatory for companies and LLPs. Once submitted, the application undergoes a verification process.

The prescribed authority will review the business details, verify your documents, and process your GST application. Once approved, you will receive your GSTIN Number via registered mail.

The registration status can be checked on the GST website’s dashboard.

Expert Guidance for Seamless GST Registration with IndiaFilings

IndiaFilings offers comprehensive assistance for Flipkart GST registration, guiding businesses through the process. Their team of experts diligently reviews business details verifies documents, and efficiently processes the GST application. With their expertise, IndiaFilings ensures businesses a smooth and hassle-free registration experience, allowing them to obtain their GSTIN Numbers promptly.

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