Goods & Service Tax For Indian Dropshipping Businesses (Bizathon5 Episode20)

69 Replies to “Goods & Service Tax For Indian Dropshipping Businesses (Bizathon5…”

1. Can I use MSME udyogaadhaar by goverment of india to register sole proprietorship. Can you plz let me know rito

2. means i want to only register for GST not to pay right

3. Thank You for such a great info. Will there be any taxes which we are obliged to pay to The Govt. Of India ? If so , which ones ?

   1. In this business model, primarily income tax on profit

4. DEAR RITO,
   MY CA TOLD ME TO PAY GST@18% RATE FOR MY DROPSHIPPING BUSINESS,I DIDNOT ADVERTISE IN INDIA AND NEVER MAKE ANY KIND OF MARKETING IN INDIA,PLEASE HELP ME IN THIS MATTER.
   THANKS

   1. Please contact a CA who understands this business model.

5. hi thanks for the video on GST. Now, as you said we don’t need GST to sell for customers outside india, then can we also run FB ads w/o GST number? Please explain.
   Thank you !!

   1. GST number is recommended for Indian FB Ad accounts.

6. Hello Sir.
   I have consulted 2-3 CA and read lots of QA on taxfull(dot)com, I found that regarding GST on drop shipping, all the professionals(CA) are divided.
   1. One is saying you dont need GSTIN
   2. Two is saying GSTIN is required but no need to pay GST
   3. Three is saying You are required pay GST on full sale amount
   4. Four is saying You are required to pay 18% on profit earned etc,
   As I am considering the fourth option is more reliable than other. Fourth say that register yourself as Intermediary and pay 18% GST on profit earned. Please suggest further.

   1. You are required to pay income taxes and cess etc. on profits – not GST

7. Hi Rito,
   I currently don’t have a GST number. Will I be able to receive payments through paypal if I am not advertising in India? You mentioned I can’t receive payments on paypal without a GST number. Does this exclude those who are only selling and advertising in the US? Also, paypal is notifying me to enter my GST N number, I am not sure if this is a requirement or not.

   1. It is recommended to get a GSTIN

8. Can I dropship to India.
   what are pro and cons of dropshipping to india?

   1. Of course. The biggest con will be that not many Indians buy on impulse. We are a need driven economy than ‘want’ driven

9. My CA says that i’ll have to pay gst(18%) on the margin.

10. is ecommerce shopify dropshipper( Non Indian supplier to non Indian consumer) a tax payer or a tax deductor or a tax collector.
    This is the first question asked while registering for GST ?
    Please help bro.
    Thanks in advance

    1. did you figure this out? if so, please help! are we tax payer or tax collector?

11. WHAT IS HSN CODE OF OF DROPSHIPPING…..PLZ REPLY

    1. hi u got your answer ? i am also going to start my dropshipping business and i am applying for gst registration and in that process i got stuck in one page HSN code and Service help me out bro what to fill for dropshippers?

12. Hi,
    Nice article thanks,

    Sorry for my english. 🙁
    But i have question as i will purchase product from one country and sell to another country. So am i liable to pay tax from the profit and if yes is it from my personal income or from my company name.
    Thanks

    1. Company income tax on profit is applicable

13. One has to pay 18% on goods sold.
    Paying GST is mandatory since it is export of services/ goods.

    1. Goods sold in India. We’re in a different business model

14. Hey Rito, I have a doubt if you can clear. My CA says that, regardless of the fact that I dont need to pay GST, I need to file it and for that I need to furnish every detail of my customer from his name to invoice no.,address, sale amount, purchase amount & product etc. on the GST portal and then file it as ‘NULL’ or ‘NIL’.

    Is it correct? Because gathering so much information in one file is such a tough task ? Please reply as I cant get a solution to this. Even the CAs in my city are new to the e commerce. Help please!!

    1. Why is Rito not replying to this Comment.
       I have same questions too.

       1. Omg same! Came back to this article looking for the answer in case I had missed something.

15. Hi,

    Thanks for your article. Just wanted some clarification.
    I am a resident of India and looking to start my dropshipping business.
    My questions are:
    1) How do you do the invoicing? Is it that the Ali Express vendor raises an invoice in your name let’s say for $100 and you raise an invoice to the buyer in USA let’s say for $120?
    2)If that is the case then that means goods were sold to an Indian and that Indian exported those goods. This while I was reading I figured comes into the compliance of High Seas.
    If so have you looked into any Import Export aspect of this?
    I am very confused with all this and really appreciate your help on this.

16. there is requirement in gst registration

    1. E-Commerce operator
    2. Selling through E-Commerce Portal

    which one to select?

    1. Operator.

17. Hi, I am from India and I am planning to start drop shipping business to outside of India. Is there any way to start the “small business/not yet established” without registering all of these. Do I need to register a “Pvt Ltd” for starting the business? How much does it cost to start the business. Kindly let me know.

    1. Please watch my video on company formation

18. Hey,
    Question
    What if I am operating from India but selling in USA- (not that simple).. So I have an Shopify account and sell goods in USA, I do not hold any physical inventory for any products in USA or India. I am a deal hunter- will find deals and post the product on shopify, if someone buys il just ship the product from whoever has the best deal. I recieve money in USD to paypal which converts to INR.

    How would that senario work for GST purposes- Filing or getting a GST number- I am not selling in India so I wont be paying the GST for sure.

    Thanks in Advance

    1. You will be paying GST to your supplier in this case. Not charging GST from your customers in US though since its not applicable on them.

19. Hi Rito
    I am a big Fan of yours every video u make is loaded with information and love. Thanks for sharing this as I was wondering how to fix things in place.

    1. Always happy to help 🙂

20. Hey Rito, Can you explain whole idea on how I can manage taxes both IT and GST with drop shipping.

    1. I’ll create a video on Taxes soon.

       1. Please create a video on Taxes. I’m paying penalty from past three months as my CA is not able to understand what Taxes to chargeand what not
          .

21. Hey Rito,

    Great content. One question. I have a dropship business set up in USA on my relatives name. I transfer money here as it grows there. How do I show this expense. And I use my card here to make AE purchases. Really confused about how this whole thing fits in an equation. Can you please help. My whatsapp is 8805027937 . Please feel free to drop a text . Big Fan

    1. sure you can send wire transfers from US to India and make expenses on your indian card.

22. Hey Rito ,

    mene apne ca se baat ki or unhone bola ki mere ko mere monthly net profit pr 18% gst return file krna pdega..

    muje yeh glt lg raha hai ki nah to mei india mei sale ja purchase kr raha hu or nahi india mei advertisement kr raha hu to 18% kaise lgega??

    Kyaa aap plz meri is confusion ko door krdenge sir.

    best regards,
    Pushpinder Singh

    1. Talk to a different CA who actually understands what you’re doing here.

23. I want to dropship in amazon however there is gst is must so if i sell them and i dont have any bill slip se how will i file in amazon

    1. Not sure how you can Dropship with Amazon. That’s a completely different business model

24. Hi

    I have a question regarding taxation on Drop shipping business, I want to do drop shipping via aliexpress/alidropship, Here is scenario:-

    1. I live in India but i want to sell to US citizen,, so Am i eligible to pay Vat to India/US ??

    2. 1. I live in India but i want to sell to Europen citizen,, so Am i eligible to pay Vat to India/European country ??

    3.1. I live in India but i want to sell to Brazil. Argentina and other LATIN country,, so Am i eligible to pay Vat to India/LATIN Countries ??

    Looking for problem solving a detail answer on this.

    Thank you very much in Advance

    1. Get in touch with a local CA who understands this business. Ask them these questions.

25. Rito one question I almost complete my business account PayPal but in bank link, I connected my bank account but also I show yellow colour exclamatory mark what i meant by that i need your help, please….

    1. Please contact PayPal support

26. How can we put US payment gateway to our website ??
    and is it legal to supply products out side india??

    1. Please watch my video on Shopify Payments and Stripe. And of course its legal.

27. Hello,

    Your video is perfect and cleared many my questions, Althou i have x questions
    basic info : I am planning to do a drop-shopping business with a partner , so the gst company and bank accounts will be under partnership firm & as you mentioned the items it is same for me , my ads and products will be sold to USA or other countries customers ( all non-indian ) , so i just need to fill NIL returns , but what about the profits in my bank account ( which will be sent to partners individual accounts after expenses ) will there be any tax for IT ? If yes, how much ?

    1. The standard income tax rules apply on your profits. Make sure you consult a certified CA in your area

28. Hi rito..
    Thanks for the amazing englightment with every video u bring.. Thank you n god bless.. Can u suggest any good C. A for registering Gst for dropshipping bhaijaan as most of the C. A not understanding this model.. As we will not be liable for paying any Gst as we are just operator n buying from China n selling on Usa via aliexpress…kindly help.. My no 9989469283
    Regards n thanks n keep up the good work.. God bless.

29. Does I need to pay GST for affiliate marketing and Google AdSense websites? Do I need to pay GST for Clickbank earnings? Sir please reply.

    1. I don’t think so.

30. Hi Rito,
    I have a confusion, i haven’t registered myself for income tax return. As i have just started my turnover is very nominal.
    Do I have to file itr? Or is it based on the turnover beyond some amount?

    1. If you’re serious about this business, its recommended to register the company, get a PAN card and file taxes.

31. What will be the nature of the premises, also proofs accordingly?

    1. It has to be an office that your company rents or a house you or your parents own

32. I have obtained a GST number recently going to start the operations very soon. But I was told by a CA that I should charge GST for people outside the borders of India in a Reverse Charge mechanism. I am not understanding the point here that why should I charge tax who is not in the tax regime.

    And do I need to take a reseller’s certificate before selling to different locations around the world?
    For example, I am selling products to people from NC, USA then I need to take the reseller’s certificate of NC in order to have dealings from the suppliers I am having in the U.S. I am very much confused now.

    1. can you please help me out how to get gst number i stuck in goods and service page dont know what to fill in HSN code?

33. Hello Sir..

    Is there any difference between GST and GSTIN. Which one is for shopify store (Not selling in India)
    Thanks,
    Naveen

34. sir sell to US me hi kar rahe but paypal shopify se kaise connect kare gst maang raha h wo please help sir

35. Rito i want to know which forms do I need to fill to file my gst,
    I don’t understand if I need to pay IGST or what ?

    I have dropped a comment on youtube too but no reply.

36. Hello Buddy,

    What if we dropship to India. Do we need to charge GST, I have a US stripe and i do not charge any tax and i don’t have to, but i am now thinking for using Indian payment methods like payumoney kn this case do i need to charge gst if i dropship from Aliexpress.

    Best Regards,
    Amir K

    1. If your Indian company is selling in India, then you have to charge GST

37. do i also need to make a seperate paypal business account for dropshing business in india

    1. Yes

38. Hey Rito,

    Thanks for sharing this valuable content about us.