How to a Get GST Number for Amazon seller?

Getting a Goods and Services Tax Identification Number (GSTIN) is essential for anyone selling on Amazon in India. It ensures you comply with tax laws and allows you to claim benefits like Input Tax Credit. The process includes registering your business, submitting required documents, and linking the GSTIN to your Amazon Seller Central account. In this article, we will guide you step-by-step about how to get GST number for Amazon seller account, making it easy to understand and helping you stay fully compliant.

The Necessity of GST Registration for Amazon Seller

Goods and Services Tax Identification Number registration is mandatory for all e-commerce sellers, irrespective of their annual turnover. Even if your sales are below the standard threshold of Rs.40 lakh for goods, GST registration is compulsory when selling through online platforms like Amazon. This ensures compliance with tax regulations and facilitates the smooth operation of your online business.

GST registration enables sellers to claim Input Tax Credit, which allows for the offsetting of taxes paid on business-related purchases against the tax collected on sales. This mechanism reduces the overall tax burden and enhances business profitability.

Amazon sellers not only comply with legal obligations but also build trust with customers and partners by adhering to GST regulations. It also contributes to the credibility and success of their e-commerce ventures.

Essential Documents for GST Registration

Before you begin the GST registration process as an Amazon seller in India, it is essential to gather the necessary documents to ensure a smooth application. Here is the list of the key documents you will need during the GST registration process:

• PAN Card

A Permanent Account Number (PAN) card is mandatory for the business or the individual owner. For sole proprietors, the owner's PAN is required, and for companies, the company's PAN must be provided.

• Photograph

A recent passport-sized photograph of the owner or authorized signatory is needed. Ensure the image is in JPEG format and does not exceed 100 KB in size.

• Contact Details

A valid mobile number and email address are crucial for receiving OTPs and official communications during the registration process.

• Proof of Business Address

You must provide documentation verifying your principal place of business. Acceptable documents include:

1. Recent property tax receipt.
2. Electricity bill.
3. Municipal Khata copy.
4. An ownership deed is required if the property is owned property.
5. For rented properties or lease agreements, you need to provide a No Objection Certificate from the owner.

• Bank Account Details

While not mandatory at the initial registration stage, it is advisable to have your bank account details ready. You will need to provide:

1. A copy of a cancelled cheque.
2. First and last pages of your passbook or bank statement.
3. Ensure these documents are in JPEG or PDF format, with a maximum size of 100 KB.

If you have these documents prepared in advance, it will streamline your GST registration process. This allows you to focus on setting up and growing your Amazon business efficiently.

Common Business Structures in India

Before you apply for a GST number as an Amazon seller in India, it is important to register your business under the appropriate legal structure. The choice of business entity affects taxation, compliance requirements, and liability. Here is a simplified overview of common business structures and their registration processes:

• Sole Proprietorship

In India, a sole proprietorship is considered the most basic type of business structure. It is owned and managed by a single individual. This is ideal for small-scale operations due to minimal regulatory requirements and a straightforward setup.

• Partnership Firm:

A partnership firm is a business where two or more individuals share ownership, responsibilities, and profits. To establish one, a Partnership Deed must be drafted, detailing roles, profit-sharing, and capital contributions. Although registration under the Indian Partnership Act, 1932, is not mandatory but it is advisable.

• Limited Liability Partnership

A Limited Liability Partnership combines the benefits of a partnership and a company, which offers limited liability protection to partners. It requires at least two designated partners.

• Private Limited Company

A Private Limited Company is a separate legal entity that offers limited liability to its shareholders. A minimum of two directors and two shareholders is required. The same individuals can serve as both directors and shareholders.

How to get GST number for Amazon seller?

There are few steps you need to follow to apply for GST registration online

• You need to visit the official GST Portal through your preferred browser.
• To initiate a new registration, go to the 'Services' tab, select 'Registration', and then click on 'New Registration'.
• Fill Part A of Form GST REG-01

1. Select 'Taxpayer' as the type of registration.
2. Provide your Legal Name, PAN, Email ID, Mobile Number, State, and District.
3. Complete the CAPTCHA and click Proceed.
4. You will receive an OTP on your mobile and email for verification.
5. Upon successful verification, a Temporary Reference Number will be sent to your email and mobile.

• Complete Part B of Form GST REG-01

1. Log in using the TRN received.
2. You must provide detailed business information. This includes details of the Promoter or Partner, Authorized Signatory, Principal, and any Additional Places of Business, the Goods and Services your business deals in, Bank Account details, and you may require Aadhaar Authentication if applicable.
3. Sign the application using a Digital Signature Certificate (DSC) or E-Signature.
4. Submit the application.
5. An Application Reference Number will be sent to your email and mobile.

Verification and ARN Generation

After submission of your GST registration application, you will receive an Application Reference Number. This is a unique 15-digit alphanumeric code that is generated by the GST portal and sent to your registered email and mobile number. The ARN serves as a tracking number, which allows you to monitor the status of your application on the GST Portal. Once your application is reviewed and approved by the GST authorities, you will be issued a Goods and Services Tax identification Number (GSTIN) along with a certificate of registration.

• Processing Time

GST registration is generally processed within 7 working days from the date of submission. If Aadhaar authentication is completed, the process may be expedited further. However, delays can occur if the authorities request additional information or supporting documents during the verification process.

Update GSTIN on Amazon Seller Account

To update your GSTIN on your Amazon Seller Central account, follow these simple steps:

• Log in to your Amazon Seller Central account.
• Navigate to Settings and select Account Info.
• Under the Tax Information section, click on Manage GST.
• Enter your 15-digit GSTIN in the appropriate field.
• Ensure that the state mentioned in your GSTIN matches the state in your business address.
• Save the changes to enable GST-compliant invoicing for your transactions.

If your GSTIN is associated with a different PAN than the one currently linked to your Amazon Seller account, you may need to create a new seller account, as Amazon does not allow changing the PAN associated with an existing account. However, if your PAN remains the same, you can update your GSTIN without creating a new account.

Maintain GST Compliance

To maintain GST compliance for your business, it is essential to follow these straightforward steps

• File GST Returns on Time

Submit your GST returns, such as GSTR-1, GSTR-3B, and GSTR-9, by their respective due dates. Timely filing helps you avoid penalties and ensures your business remains in good standing with tax authorities.

• Keep Accurate Records

Maintain detailed records of all sales, purchases, and tax payments. This includes invoices, bills of supply, debit or credit notes, and payment receipts. Proper record-keeping simplifies the filing process and is crucial for audits.

• Stay Informed About GST Changes

Regularly check for updates on GST laws and regulations. Subscribing to official notifications or consulting with tax professionals can help you stay compliant with any new requirements.

• Classify Transactions Correctly

Ensure all transactions are accurately classified under the appropriate Harmonized System of Nomenclature or Services Accounting Code to apply the correct GST rates.

• Apply Correct GST Rates

Stay updated with the latest GST rates applicable to your goods or services. Misapplication can lead to underpayment or overpayment of taxes.

• Generate E-Way Bills When Required

For the transportation of goods exceeding Rs.50,000 in value, generate e-way bills to comply with GST regulations.

• Maintain Digital Records

Adopt digital tools for record-keeping, such as cloud-based accounting software, to ensure accuracy and ease of access during audits.

• Reconcile Input Tax Credit (ITC)

Regularly reconcile your ITC claims with GSTR-2B to ensure eligibility and avoid discrepancies.

• Understand Reverse Charge Mechanism (RCM)

Be aware of situations where the recipient of goods or services is liable to pay the tax, and ensure compliance with RCM provisions.

• Prepare for GST Audits

Maintain organized records and be ready for GST audits by ensuring all documentation is accurate and up-to-date.

• Timely GST Payments

Ensure timely payment of GST liabilities to avoid interest and penalties.

Understand GST on Amazon Sales

To ensure GST compliance for your Amazon sales, it is essential to understand the following key aspects:

• GST Rates for Your Products

Different products attract different GST rates. For instance, clothing typically falls under the 5% GST slab, while electronics may attract an 18% GST rate. It is crucial to classify your products correctly to apply the appropriate GST rate. E-commerce platforms like Amazon collect and remit GST on your behalf through the Tax Collected at Source mechanism. This means that when a sale is made, Amazon collects the GST from the buyer and pays it to the government.

• Issuing GST-Compliant Invoices

Even though Amazon handles the collection and remittance of GST, it is important to maintain accurate records. Ensure that your invoices reflect the correct GST details, which include your GSTIN. The applicable tax rate. And the amount of GST charged. This practice helps to maintain transparency and is useful for your records and future audits.

• Claiming Input Tax Credit (ITC)

As a GST-registered seller, you are eligible to claim Input Tax Credit (ITC) on the GST paid for business-related purchases, such as raw materials, packing, and other supplies. To claim ITC:

1. Verify Invoices: Ensure that the invoices for your purchases are GST-compliant and reflect in your GSTR-2B.
2. File Returns: Regularly file your GSTR-3B returns, detailing your output tax liability and input tax credit.
3. Reconcile Discrepancies: Address any discrepancies between your claimed ITC and the details in GSTR-2B in your subsequent returns.

Conclusion

In this article we have discussed how to get GST number for amazon seller. A GST number is essential for Amazon sellers in India to ensure legal compliance, claim Input Tax Credit, and build trust with customers. From registering your business to maintaining regular filings, GST compliance is a key part of running a successful e-commerce venture.

Online Legal India is here to make the entire process smooth and hassle-free. We assist with GST registration, return filing, ITC reconciliation, and overall compliance. Our expert will help you throughout the process. Contact our experts today.