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The Basics of Goods and Services Tax (GST)

by Arshiya Dey and Tauseef Ahmed on 02/02/2017

Today, every business owner in India has one common thing in their mind, GST.

This is the first article in a series of posts where Amazon will provide you with an overview of this important topic. We also hope this will help you in your transition to the new Goods and Services Tax.

What is GST?

  • GST is a comprehensive indirect tax levy subsuming all central and state levies. GST is a destination based consumption tax levied on supply of goods and services.  It is proposed to be levied at all stages right from manufacture up to the final consumption with credit of taxes paid at all previous stages. 
  • India has adopted a dual GST model where Central and State Governments will simultaneously levy GST on a common tax base.  On intra-state supply of goods and services, Central GST ("CGST") and State GST ("SGST") will be levied.  CGST will be levied and administered by Central Government whereas SGST will be levied and administered by State Government. Similarly, Integrated GST (IGST) will be levied on every inter-State supply of goods and services (including import) by the Central Government.
  • GST is proposed to be implemented from 1st July, 2017 and the sellers who have registered themselves with the state VAT/CST laws will be required to migrate their existing registrations into the GST regime.

Existing dealers: Existing VAT registered payers will not have to apply for fresh registration under GST.

New dealers: A single application needs to be filed online for registration under GST. The registration number will be PAN based and will serve the purpose for both CGST and IGST registrations.

For any GST related queries/clarifications, please contact your Tax Consultant or GST Suvidha Provider (GSP). For all other queries regarding Selling on Amazon, contact Seller Support.

Amazon Sellers can attend our Seller University training on the topic of migrating from VAT to GST. Click here to register and become an Amazon Seller.

For a detailed explanation on how the Goods and Services Tax work, you can read our next post here. 

To view the procedure on how to apply for GST using your existing VAT number, click here.

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