Do you need GST for dropshipping?

Do you need GST for Dropshipping in India? If you are selling your products through eCommerce portal then GST registration is compulsory. Thus, the threshold Turnover limit for GST Registration is Rs. 40 lakh for a supplier of Goods.

How do I apply for GST for dropshipping?

Filing GST Returns for Dropshipping Business To file GST returns you need Sales Invoices, Purchase Bills, Tax charged on sales invoices and tax paid on purchase invoices. You need to file 2 monthly returns and one annual return. The manual entry is only on the first process of filing GSTR1 before 11th of every month.

Who pays tax in dropshipping?

Under Income tax, like any other business, this would be taxable as normal business income. It would be taxable under the head Profits & Gains from Business & profession. An ITR reporting the income from drop-shipping will be filed.

How do I pay taxes when dropshipping?

Usually you do not need to pay sales tax on the orders you make from your suppliers. That’s because there’s a sales tax exemption for purchases intended for resale. BUT to take advantage of this exemption, your business needs an official exemption certificate. Also referred to as resale certificates.

Does GST apply to dropshipping businesses?

Most importantly, there is no double taxation. In other words, you don’t have to pay tax twice on the same source of income after GST’s introduction. Hopefully, now you have a positive viewpoint towards GST. And now you’re all pumped to register your dropshipping business.

When to charge GST on sales of taxable goods?

When to charge GST If your organisation is registered for GST, or required to be, you will generally be liable to pay GST to us on the sales of your goods and services. These are called taxable sales. There are other types of sales where your organisation is not liable to pay GST to us.

When Am I liable to pay GST to you?

You are liable to pay GST to us when your organisation makes a taxable sale. Your organisation makes a taxable sale if it is registered or required to be registered for GST and: the sale is not GST-free or input taxed. The GST you are liable to pay is equal to 1/11th of the sale price.

Does GST apply on goods delivered from outside India?

For the first leg, since the goods are being delivered from a supplier outside India to a consumer outside India. This is neither an Export from India nor an Import into India and hence this is out of the ambit of GST. For the second leg, it’s an export of services from a person who is based in India to a person based out of India.