E-commerce

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Amish Maknojia

Student

507 Points Joined September 2012

one of my client is starting with marketplace e-commerce business whereby registered seller are expected to promote their website and in return they will get 25% share of profit after deducting expenses and taxes..
eg. A of Gujarat is selling on website and is sold in area of B of Maharashtra through website..now a will be remitted the amount after deducting commission of market place and b will get 25% of order (balance 75% to A as said above)..
now what are the GST implications on A and B and the duties of marketplace provider

Replies (2)

dawani sunil

36 Points Joined July 2017

in ur example A have to pay gst and ecommerce operator has to pay gst bcoz goods are sold thru website

Amish Maknojia

Student

507 Points Joined September 2012

Thank you sir for your response,

I have a confusion in your response, why ecommerce will pay GST on goods, they will pay only on the commission they earned, right?

What if Ecommerce Marketplace provider provides shipping facilities to registered Seller by using the service of other shipping companies

Eg. Marketplace business enters in to agreement with bluedart to provide shipping facility to registered seller, now marketplace provider charges shipping charge from cutomer, Will GST be applicable on shipping for market place provider? and if yes under which SAC it should be registered?