GST is one of India’s largest tax reforms that finally commenced on 1st of July 2017. The journey of GST began in the year 2000 when a committee was set up to draft the law, and after 17 years India finally entered into the GST law & rule of tax reforms
The reform has changed the entire scenario of trade, for manufacturers, exporters and traders and even for all e-commerce businesses putting uniform tax slabs under different HSN Codes for exports, interstate and local supply.
What is GST? An Introduction to India GST
GST is a multi-stage, comprehensive and destination based tax in India.
It has replaced many indirect tax laws which exist previously in India where the tax is collected by the State where goods are consumed.
So it is a one nation one tax law of taxation for the entire country.
Every business fall under the GST except businesses with annual revenue of less than Rs 20 lakh are exempt from registration.
So whether it is a manufacturing concern or a trading firm or any other service sectors all falls under the GST under different tax slabs depending upon the nature of product or services offered.
And e-commerce is not an exception either.
All e-commerce business needs to be registered under Goods and Service Tax,
Need for GST & the Rise of E-Commerce Business & Exports
GST is considered to be a significant step in the indirect form of taxation in India because it has amalgamated various central and state tax into a single tax to mitigate the double taxation which existed earlier to GST.
Our previous VAT rates system differ from state to state on the other hand with the arrival of GST, the tax system has become uniform across the nation and taxes now divide on the central and state government.
India is one of the fastest growing e-commerce markets, and the country’s online retails market witnessed a compound annual growth rate of 53% for the period 2013 t0 2017 according to the latest report by consultancy firm Bain & Company.
There are around 5696 OpenCart store owners in India. So the number of users is exponentially high for India and the transformation is huge.
According to Builtwith.com
Net Earnings of GST by Government of India as of FY 2018:
Report from sources says GST collections in April exceeded Rs 1 lakh crore in the Financial Year 2018. And the economy is widely forecast to grow around 7.4% in the current fiscal, up from 6.6% in FY18.
To cater to the need of the Goods & Services Tax for the e-commerce industry, specific to OpenCart store owners. You must integrate GST module to your online store to overcome hurdles with the recent changes in the tax structure.
The modules you need for your store are easily available on the official OpenCart marketplace along with a number of other modules for OpenCart.
However, you may try TMD OpenCart GST Module & Extension which is also published on the official OpenCart marketplace for India GST OpenCart e-commerce businesses.
TMD is an official partner of OpenCart so you can find all modules and extensions to be reliable for your OpenCart store.
And depending on the nature of your business and how you want to define your tax on your products you can choose specific inclusive or exclusive module for your store.
The TMD OpenCart GST Extensions facilitate online businesses who are using the OpenCart framework and it is powered by TMD for India GST e-commerce operators.
Are you registered under GST as e-commerce?
Did you know GST is mandatory for all e-commerce sellers in India?
So if you did not register under GST, first you have to get it to register online.
As per GST laws businesses which brings 20 lacs are exempted to pay GST in India and 10 Laks is especially a relief for northeastern states.
However, under this scheme, online sellers don’t apply to this threshold.
So as an online business it is mandatory for all e-commerce store owners to get register under GST and pay taxes under all sales either local or interstate or export.
GST provides the ease of doing online business because being online you play globally.
And without GST, government laws do not allow you to make sales out of state.
With GST you also need to stay updated with compliances on a monthly or quarterly basis and GST Software play a huge role in this case to stay up to date with your compliances.
Why is it good for e-commerce business to register under GST?
If you are not registered under GST you lose the flexibility of selling outside of the state.
Another way to look at it is, you are losing an opportunity to sell globally.
You also cannot claim ITC and as a result, your business will not be able to maximise cash flow or enhance your business.
So it is mandatory that all e-commerce business gets register under the GST tax laws and derive maximum benefits that GST has to offer.
And if you have been using OpenCart framework for your e-commerce store. You need to think about it.
Benefits of GST for E-commerce Trade:
- Defined treatment for e-commerce
- Mitigation of cascading and double taxation
- Online simple procedures under GST
- Simple Tax regime
- Regulating the unorganized sector
- Composition scheme for small business
- Increased efficiency in logistics
- Development of common national market
- Fewer rates and exemptions
- More efficient neutralization of taxes especially for exports
- Reduction in the multiplicity of taxes
Direct Reseller Versus E-Commerce Aggregator
Are you a direct reseller or an e-commerce aggregator.
If you fall under direct seller, you can sell them on your OpenCart store with standard GST billing & filing rules.
However, if you are an e-commerce aggregator connecting buyers and sellers, GST law requires you to deduct 2% of the sale before you send payments to the seller.
And you must pay that amount to the government. Then, your sellers can claim that tax as a deduction on their own GST filings.
A good example of an e-commerce aggregator is an OpenCart Multi Vendor Store owner
GST Impact on E-commerce: What you need to update?
GST has opened new markets for online e-commerce business, so you are eligible to sell anywhere in India and outside of India without any complexities.
Now if you are using the OpenCart framework
This is easier for you if you use the appropriate OpenCart GST module. Your store to facilitates the collection of all sales made within a month and provide you with correct and matched reports.
E-commerce business, you are required to file a GSTR monthly report for details of Supply made during the month on which tax has been collected.
So without updating your website, it would become cumbersome for you to fetch the data from the store.
Updating your website with GST module ensures you are meet the expected data on time and file your GST Returns correctly. So all e-commerce store owners have to change their systems due to changes in the tax structure.
Also, the place of supply has to be determined and return filing in itself is a huge process.
So you must ensure that your current OpenCart store functions under the current GST laws.
TMD OpenCart GST module is created to provide flexibility for OpenCart store owners to feed order. Generate invoice and bill inclusive or exclusive of GST under separate. TMD module and generate necessary reports from your online trade.
Benefits of TMD OpenCart GST module for your online store.
OpenCart marketplace provides an endless number of OpenCart modules and extensions. GST OpenCart is one of the much awaited OpenCart extension with the launch of GST in India.
So now you can find TMD OpenCart GST extension on the marketplace for your Store.
GST module for OpenCart provides store owners with a user interface to create items with GST define and defined their HSN codes at the master level.
Orders and invoices are generated for consumers that fetch the GST from the master defined under its own GST tax slabs.
OpenCart GST Portal also provides a report related to GST such as HSN wise sales reports as per GST laws.
Features of TMD GST OpenCart Module
1. Apply Tax as per Product & Category
GST brings one uniform indirect tax in all states. So it is easier for you to define universal one tax rate for your product on the product master.
It also enables you to define category wise GST rate under the category section
Also, you can assign multiple category and multiple products under one tax rate. Applied GST tax will show on OpenCart checkout page.
2. Set New GST Rules
Change or edit your tax rate any time you want depending on tax laws rate, product, and category whenever you want.
And also define your GST Name as per tax slabs
Also, you can modify the invoice template to show the GST for each product and select different rates product wise.
3. HSN monthly GST Report.
HSN Report is a summary of all the products and services sold over a month or a period.
HSN-wise report is auto-generated under TMD OpenCart GST reports
So you can verify it and upload your correct data to the GSTN portal.
4. HSN Monthly GST Reports XLS
In order to file your monthly HSN summary, you can export your HSN register to an XLS file.
And TMD OpenCart GST Module provides you with this option to directly export it from your website report.
So you can copy and paste it to other sources for creating your perfect reports for filing your returns.
5. Change GST as per Location.
You can fix your location from the master settings to set up your base location with your OpenCart store.
Depending on your base location, GST module assigns required taxes to local sale or an interstate sale.
So, suppose if your base location is in Tamil Nadu, the module will identify all of your sales orders from Tamil Nadu. And set local GST to your orders, i.e CGST and SGST as per location identified.
And if the orders are from a different location it will identify and match your base location and set IGST to all orders. If your business master location does not match with orders placed from a different location.
All E-commerce store owners in India have to get register under the GSTN
So there is a requirement to update your OpenCart store which facilitates the GST advanced recognization features such as SGST, CGST & IGST
Report for the monthly filing of GST includes HSN summary and Local and Interstate Sales with a given period
TMD OpenCart GST Extension is created for vendors to accesses order invoicing and reporting as per GST guidelines.
Hope you enjoy our module & comment us below for any improvements