India, like the rest of the world, has seen an extraordinary surge in e-commerce transactions. Without a doubt, online business or selling through an e-marketplace has become not only the most popular, but also an unavoidable channel of selling or conducting business for any company that wants to survive and develop in the future. It extends a company’s reach to infinity and turns the entire world into a market. Because it provides a platform for frictionless business, people are earning money as they have never before.

In India, e-commerce has transformed the way people do business. The internet’s and smartphones’ penetration will have a significant impact on the sector. According to this, the number of sellers on e-commerce portals has increased.

We will explore the factors in this article that will assist e-commerce sellers or anyone seeking to start an e-commerce organization in setting up their vital procedure.

Who Qualifies As An E-Commerce Operator?

An e-commerce operator is a person who provides a platform for others to sell goods or services. Amazon, Flipkart, and Snapdeal are examples of such retailers, whereas Uber, Ola, Swiggy, and Urban Clap are examples of service providers.

A person who sells goods or services on his or her own website is not an e-commerce operator, hence the laws below do not apply to them. As a regular merchant, he must charge GST and file returns.

E-commerce sellers GST requirements

E-commerce merchants must be classified as either Supplier of goods or Supplier of services for the purposes of GST registration, as the registration requirements differ depending on whether they are in the business of delivering goods or services. If you are an E-commerce seller in Chennai looking for GST registration in Tambaram, Chennai then, you have come to the right place. Get in touch with one of our GST consultants today.

  1. Supplier of goods:  A vendor of products GST registration is required for any goods supplier. This category does not have a turnover threshold exemption.
  2. Supplier of services: GST registration is required only if a service provider’s turnover exceeds the GST turnover exemption limit of Rs. 20 lakhs.
  3.  Suppliers of services specifically named in section 9(5) of the GST Act, on the other hand, are not required to register for GST.
  4. Those providing passenger transportation through an e-commerce operator such as OLA, UBER, and others are examples of such service providers.

b. Through aggregator platforms such as Goibibo, hotel service providers. This advertisement has been reported.

c. Providers of housekeeping services via aggregator platforms such as Urban Company.

Eligibility for GST Registration

E-commerce operators and sellers can use these forms to file their GST returns.

  • Forms GSTR-1, GSTR 2, and GSTR 3 must be filed monthly by e-commerce suppliers/aggregators, and Form GSTR-9 must be completed annually.
  • E-commerce businesses must file a GST return in the form GSTR 8 on a monthly basis.


  • GSTR 1 is a monthly return for outward supply or sales.
  • GSTR 1 is required to be filed by every entity that is subject to the Goods and Services Tax.
  • The 10th day of the following month is the deadline for E-commerce sellers to file GSTR 1.


  • GSTR-2 is a monthly return for inbound goods and services (or both) received during a tax period.
  • The filing of GSTR 2 qualifies them for Input Tax Credit, which allows them to receive a refund of tax on purchases or deduct that amount from the tax due on outbound goods.
  • GSTR 2 would be due on the 15th of the next month.


  • GSTR 8 is one of the most significant forms that must be handled with extreme caution by an E-commerce company.
  • GSTR 8 is a monthly statement that E-commerce businesses must file. It must include information on supply made to customers through the taxpayer’s E-commerce site by both registered and unregistered taxable persons, as well as basic customer information, the amount of tax collected at source (TCS) (to be counted at 1%), tax payable, and tax paid.
  • GSTR 8 has a monthly due date of the 10th of the following month.


  • All GST-registered taxpayers, including E-commerce sellers and operators, must submit an annual return in a specific format. The GSTR 9 is the name of that form.
  • GSTR-9 contains information regarding supplies made and received during the year under several tax heads, such as CGST, SGST, and IGST.
  • It compiles the information provided in the monthly/quarterly returns over the course of the year.
  • The GSTR-9 must be filed by December 31st of the previous year.

TDS in the case of income tax and TCS in the case of GST

Let’s look at the whole meaning as well as the key aspects related to TDS and TCS under income tax and GST, respectively, so that readers can gain a better knowledge of the subject.

TCS Calculation GST (Goods and Services Tax)

E-commerce merchants that provide goods or services through e-commerce operators would be paid after a 1% TCS reduction on the Net Value of Taxable Outward Supplies (1 percent IGST for Interstate sales & 0.5 percent CGST & 0.5 percent SGST for Intrastate sales). TCS will not be included in the greater cost for the seller, but it will be an asset that will offset their GST tax liability. After submitting TCS returns to the GST portal, which are credited to the GST cash ledger, the TCS can be claimed.

Even if the E-commerce industry’s GST compliance has increased, it still benefits local suppliers by allowing them to sell in any state at the same tax rates. This will encourage more sellers to go online and give excellent customer care. Also, if a small business uses the e-commerce industry to conduct business, it will gain access to a vast market.