GST classification in 3 easy steps using the Shop101 app

Update your Shop101 app and follow these 3 steps to set GST classification-

Step 1: Go to a product or a category you want to classify

Step2: Set GST classification from the options available for GST category

Step3: That’s it…..there is no Step 3!

Remember: GST classification does not mean that GST will be applied right away. You will get to decide when to start collecting GST above your prices. So go ahead and classify now!

Answers to common questions sellers have on GST

Q. Will Shop101 cut taxes from my sales?

No. Shop101 will not cut taxes from your sales. The GST taxes are applied only after your GSTIN is verified and you choose to increase your prices to accommodate taxes in the app. When you do that, taxes will come to you to deposit to the government.

E-commerce seller.

Q. Who will pay GST to the Government?

You, the seller, will be paying GST to the Government. Shop101 enables you to collect GST taxes from the customers. The taxes will be transferred to you in the weekly payout. You will have full and complete responsibility of paying taxes.

E-commerce seller.

Q. Will Shop101 help sellers with GST filings?

Yes. Shop101 will launch a package to help you with GST filings at nominal charges. Start with getting a GSTIN today and Shop101 will be there to help you with the entire process of filings.

What documents are required for GST Registration?

As an individual seller, the registration for GST is very simple. You just need the following documents-

  1. Your PAN Card
  2. Your Aadhar Card
  3. Your Bank Details- both saving and current accounts are accepted
  4. Your Address Proof- if you operate your business from home then address proof of your home will work
  5. Your Photo

You will need to submit these documents at the GST portal. You will get your GSTIN within 10 days of submitting a valid application to the government.

Still have doubts? Shop101 team will assist you end to end in getting your GSTIN. Click on Get assistance to obtain GSTIN to find more.

Will GSTIN be mandatory to sell using Shop101?

 

Yes! GSTIN will be made mandatory to sell using Shop101. 

Why?

Simply because without a GSTIN, you cannot ship to another stateIn fact, shipping companies are already asking for GSTIN invoices for all shipments to avoid any hassles. For example, BlueDart has already made it compulsory!

“Without a GSTIN, you cannot ship to another state”

But what if, “I am a small seller and my turnover is less than Rs. 20 lakhs annually. Do I also need GSTIN?”. Sure, if you want to ship even a single package inter-state, you need a GSTIN irrespective of the turnover.

“To ship even a single package inter-state, you need a GSTIN irrespective of the turnover”

If you are worried about how to apply for GSTIN or how would you manage once you have the GSTIN? Don’t worry! Shop101 will have a solution for everything. We will ensure that you can run your business smoothly.

If you ask us in-person, we would advice you to get a GSTIN right away as it is the right thing to do to build a sustainable business. This is an opportunity to build a white business, don’t miss this chance!

How to collect GST tax from customers using Shop101 App?

Are you unsure of the right GST tax rate or HSN code every time you make a sale?

Here’s how Shop101 has made the process simple:

    1. Choose the GST classification for your products in the Shop101 app – right HSN code and GST tax rate are automatically applied.
    2. Every time a consumer buys from your website, GST is automatically calculated and applied on the product prices
    3. The amount paid by the customer includes product price + shipping & COD(as specified by you) + GST. This is transferred to your bank account every Tuesday
    4. You will deposit the taxes collected at the end of every month with the Government.
Remember, Shop101 system will only collect GST from your customers once your GSTIN (GST Identification Number) has been approved. So start GST classification as soon as the updated app is live even if you don’t have a GSTIN yet.
Simple. Isn’t it?

How does GST work?

If you read our last post, you know that it’s crucial to register your business for GST. On registration, you would be assigned a GST number also referred to as GSTIN.

Now what do you do? How to charge taxes? Who pays the taxes? Does it impact profits?

Don’t worry! We will help you understand:

  • Remember that GST does not change your profit margin.
  • The tax rate is decided based on the product. This could be any of 0%, 3%, 5%, 12%, 18% or 28%. Shop101 app will automatically apply the right tax rate for you.
  • The taxes are added to the price and collected from the customer.
  • Finally, you as the merchant deposit the taxes with the government at the end of every month.

Let’s see an example:

  • You procure a product from the wholesaler at Rs.600. You now want to sell it for Rs.1000. Your profit is Rs.400.
  • Let’s say a tax rate of 18% is added to the price you charge your customer. This means if the sale price is Rs.1000, the GST charged on that price is Rs.180.
  • You will receive the sale price + GST= Rs.1180 from the customer.
  • At the end of every month you need to file your taxes with the government and pay the Rs.180 that is owed to them for this transaction.

Isn’t that simple and easy?

GST: Next Steps for Online Sellers

In light of the recent announcement  from the Government, there is a lot of confusion amongst online sellers. We have received hundreds of queries regarding what needs to be done now.

If you are an online seller, here is what we would advise you to do:

  1. Given that almost everyone we have spoken to wants to build a long-term business, apply for GST right away to avoid any hassles later on
  2. Classify the products according to GST, once the GST-compliant Shop101 app update goes live
  3. Check the prices of your products to ensure that appropriate prices and taxes are being shown to your customers

Shop101 is prepared to support you fully in this journey. We will:

  1. Help you file for GST registration. Please find the details of registration here
  2. Release an app update to classify the products for GST. This ensures that the right taxes are applied to your products.
  3. File returns on your behalf (at a nominal fee), if you need help with that.

At Shop101, we will go all out to ensure that you have no issues in transitioning to this historic tax reform and are able to build a sustainable long-term online business.

Relief for Online Sellers under GST

Yesterday, Government of India announced that the special requirement for online sellers to be compulsorily registered under GST has been deferred until further notice. So as of now, there is no difference between selling offline and selling online. All exemptions available to offline sellers are available to online sellers as well.

In simple words, you can continue doing business as you were doing before GST. You have more time to get your GST registration and learn how to file GST Tax.

We recommend that you apply for your GST ID right away to be ready when government announces a date for implementation of GST for online sellers.

 

 

How to become GST Ready using Shop101 App?

Under Good & Services Tax Act (GST), Online Sellers need to pay GST for every sale of their products.

Important GoI Announcement

Government has deferred implementation of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) for smoother implementation of GST. For now, businesses can continue to sell on e-commerce platforms as earlier.

However, we recommend getting the GST registration completed at the earliest to avoid any hassles.

In the earlier posts, we had covered the 3 things required for an online seller to be GST Ready-

  1. GST Identification Number for your business
  2. GST Tax Rate applicable for your products to calculate tax to be paid
  3. GST Product Classification or HSN Codes for your products to file your tax

Shop101 will help you complete all these 3 things to be GST Ready.

We are happy to announce Shop101 App is now ready to take your GST tax registration status. To get started, follow the steps below-

  1. Download or update the Shop101 App
  2. Choose your current GST Status-
    1. “I have a GST ID/Provisional GST ID” then submit your details so that you can then proceed to make all your products ready for GST
    2. “I don’t have GST ID” then choose “help me register” option. Shop101 Team will help you be GST ready.

We will be releasing more informative videos on GST, you can subscribe to our YouTube channel so that you don’t miss future updates.