GST Implementation in Marketplace | gst extension

Introduction to GST

Before moving on to the Best GST Implementation for Marketplace we need to know what is GST?

GST stands for Goods and Services Tax, it was launched in India on 1st July 2017 by the President of India. GST is levied to remove indirect taxes and to levy only one tax, GST means one nation, a tax,

VAT vs GST

Earlier VAT (Value Added Tax) was levied on the products but it increases the value of the commodity at every stage of the supply chain. Hence GST was introduced to remove the additional duty levied on the products.

VAT was also removed due to different VAT rates and laws in each state. Whereas GST is a single integrated tax which uses destination-based taxation concept.

Features of GST

  • Three types of taxes – IGST, CGSTAnd SGST,
  • GST is destination based tax based on consumption.
  • GST is not applicable on liquor for human consumption.
  • There are five petroleum products namely – Crude, Petrol, Diesel, ATF and Natural Gas on which GST is applicable.
  • Seamless credit across the entire supply chain in all states.

GST Terminology

  • CGST – It is a tax levied by the central government on the interstate supply of both goods and services. Tax revenue in CGST is for the central government.
  • SGST – Taxes are levied by the state government on the interstate supply of both goods and services. The tax revenue in SGST is for the state government.
  • IGST – All interstate supplies of goods and/or services are taxed.
  • GSTIN – It is a 15 digit unique code that is provided to every person registered under GST.

Importance of GST in eCommerce Industry

E-commerce means dealing with goods and services using internet services, sellers post their products on online stores to sell, then GST comes into play.

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GST is very much for the customers to remove the additional taxes from the manufacturing of the product to the delivery of the product. Now customers have to pay only one tax which is GST.

GST helps businesses reduce paperwork and increase their efficiencies.

Why Apply GST on Marketplace?

GST implementation is important for the market as there are many sellers in the market and their products to sell online and each seller may have its own shipping services and delivery charges.

  • The Government of India has set a limit for the revenue amount of all businesses and once that limit is exceeded, GST registration is required for that business.
  • The government has also introduced a composition scheme, under that scheme small and medium businesses are required to file returns quarterly instead of monthly.
  • Marketplace seller has to file monthly return under GST to claim credit for tax collection at source by Marketplace owner.

Why have we implemented GST on Magento 2 Marketplace?

We have implemented GST on Magento 2 Marketplace so that store owners as well as vendors can set up Indian GST structure for marketplace tax system.

vendor panel

Using this module seller/store owner can add csv file for GST on products to configure GST in one go.

That’s all for the GST implementation for the Marketplace. For any questions please contact us. Feel free to add tickets at helpdesk system,

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