GST in E-commerce Business: Online Sellers

B2B (Business to Business)

Key difference:

3. Intra-State vs Inter-State Sales

Intra-State

Inter-State

  • Seller and buyer are in different states.
  • GST charged = IGST.
  • Example: Delhi to UP sale of ₹10,000 @18% = ₹1,800 IGST.

In eCommerce, inter-state sales dominate, since marketplaces deliver PAN India. Sellers must carefully report place of supply.

4. Handling Returns, Cancellations, Debit & Credit Notes

Why important?
If you don’t issue debit/credit notes, your liability will mismatch with actual collections and marketplace reports.

5. GSTR-1 for eCommerce Sellers

GSTR-1 is the sales return filed monthly or quarterly.

Key reporting requirements for eCommerce sellers:

Reporting correctly ensures your sales match with eCommerce operator’s GSTR-8 TCS statement.

6. GSTR-3B for eCommerce Sellers

GSTR-3B is a summary return filed monthly.

It includes:

📌 Think of GSTR-1 as detailed sales return and GSTR-3B as monthly payment return.

7. Special Scenarios in eCommerce

a) Inter-Branch Transfers

If you have warehouses in multiple states, stock transfers between states are treated as supply (with GST invoice).

b) FBA (Fulfilled by Amazon)

Goods are stored in Amazon warehouses. If Amazon shifts stock from one state to another, it is treated as a supply between your own GSTINs. GST invoice must be issued.

c) Discounts & Promotions

  • Pre-supply discounts → adjusted in invoice.
  • Post-supply discounts → require credit note.

8. The Most Important Step: TCS Reconciliation

E-commerce operators (Amazon, Flipkart, etc.) are required to:

📌 As a seller, you must reconcile your sales with these TCS figures.

Why state-wise reconciliation matters

Suppose your warehouse is in Delhi but you sell:

Amazon’s GSTR-8 will show these amounts state-wise. Your GSTR-1 must also reflect this exact breakup. Any mismatch leads to GST notices.

9. Payment of GST in eCommerce Business

Steps for payment:

10. Example – Complete Cycle of GST in eCommerce

Let’s say in June 2025, your sales were:

Your Reporting:

If Amazon deducted ₹950 TCS, this should appear in your electronic cash ledger.

11. Common Mistakes Sellers Make

12. Best Practices for Smooth Compliance

FAQs on GST in eCommerce Business

Conclusion

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