Gst on dropshipping in india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2018 I am based in India and setting up a dropshipping website. Plan to advertise products from China on my website to Indian customers i.e buyers will be Indians. I will take payment and shipping address from the Indian customers in rupees on my website and then place an order with the Chinese manufacturer thru credit card in the name of the Indian buyer with the buyer’s address for shipping.

Difference between the price on my website and the Chinese website is obviously the profit. The Chinese supplier as soon as he gets the payment from me will ship the product directly to the buyer in India to his address. The products don't come to me at all at any point.

In the above case do I need to have a GST registration? I don't expect a turnover of more than 20 Lacs to start. GST registration of the Chinese suppliers is out of my control. How and on what do I charge GST and is taking reverse credit an option?

Rajesh Kumar

Rajesh Kumar (Expert)
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04 September 2018 Prima facie, the activity undertaken by you is supply of goods simplicitor. As your turnover is likely to be much less than 20 lakhs, you don't need a GST registration as of now. If the business grows, you will need to examine the model from taxation point of view.