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Advantages of ITC (Input Tax Credit) in GST for E-commerce sellers or Online Sellers in India

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If a person is using ITC(input tax credit) under GST, it means that when they are paying the tax for their output, they can reduce the tax they already paid for their inputs away from this amount and pay the remainder. ITC can only be claimed for business purposes and cannot be claimed for goods and services that have been used for personal use. It also cannot be used for exempt supplies.

With the new GST system in place, the way that we have viewed the tax system in India has completely changed. A consumption-based tax, GST has replaced all of the indirect taxes that have been levied on goods and services normally by the Indian government. For e-commerce companies, the rules are slightly more complicated. GST made the welcome change of reducing taxes for small businesses.

Why is ITC good for online sellers

ITC is a great advantage for online sellers in many ways. They can use the input tax credit to reduce their taxes. This will also prevent them from losing money unnecessarily for the sake of their taxes. In the case that you have just spent a certain amount of money in GST on the materials needed to make a product, you will also charge a higher rate of GST when you sell that product to a customer.

Financial Advantages of ITC (input tax credit) for GST registration for e-Commerce sellers in India.
GST ITC for Online Sellers in India | Virtual Office Address

Under the GST scheme, Input Tax Credit(ITC) can be used by online sellers to reduce their tax burden. The seller will only have to pay the difference of the tax that was paid on input and output as tax to the government. This allows online sellers to have an excellent opportunity to save money that they can invest in the success of their business. It is important that sellers understand the concept of the ITC feature before they proceed to use it.

Normally, you would have to pay this amount to the government. However, using the ITC, you can deduct the original GST that you charged to your customer from what the government expects from you. This means that you will now pay a smaller tax to the government.

Requirements to get ITC under GST

  • The applicant must have a tax invoice that has been issued to them by a registered dealer
  • The applicant must have already received the goods or services for which they are trying to get the ITC for
  • The tax that has been applied to the applicant’s purchases must have been paid to the government by the supplier in cash
  • The supplier of the product or service must have filled in the GST returns

Documents required to claim ITC under GST

  • A copy of the invoice from the supplier of the products or services
  • A copy of the applicant’s invoice(who is not a registered dealer and is a recipient of the goods and services)
  • A debit note issued by the supplier of the products or services if the tax charged in an invoice has been found to be of a lesser amount than that which is normally payable for such products or services
  • A bill of entry which will be needed for an integrated tax on imports
  • A credit note issued by an ISD(Input Service Distributor-business that distributes taxes on the basis of the tax invoices received for the products or services)
  • A bill of supply that has been provided by a dealer who is trying for a compensation scheme

How to claim ITC

In the form GSTR-3B, normal taxpayers must report the amount of ITC in their monthly GST returns section. ITC can be claimed in GSTR-3B to a degree of 20% of the ITC mentioned by the suppliers in the GSTR-2A return. The person who wishes to claim the ITC should carefully check GSTR-2A before they go to GSTR-3B.

Reversal of ITC(Input Tax Credit)

These are some of the situations in which ITC can be reversed:

  • If the invoice has not been paid within 180 days of its issue
  • If a credit note has been sent by the seller to the Head Office
  • If inputs have been used for personal purposes
  • If capital goods have been used for personal purposes

Role of InstaSpaces

Our team here at InstaSpaces is extremely excited to work with you towards helping you successfully claim ITC in GST. Since the world is rapidly changing, we understand how important it is for online sellers to be able to adapt to the constant changes that they may face in their environment.

Save your Input Tax Credit using Virtual Office with GST Address in India
Online Sellers get Virtual Office Address for GST Registration in India

Being able to work in a cost-efficient manner is incredibly important towards ensuring that online sellers do not lose out on money to taxes unnecessarily. Understanding all the new rules that are present under GST may be difficult for you at first but you need not fret as we are here to guide you patiently.

We will assist you in understanding the nuances of what you have to do in order to claim the IST. As a company that specializes in GST registration and helping people find new virtual offices, we are extremely experienced at handling complicated documentation for our clients. We are ecstatic at the prospect of working with you to help you claim your ITC successfully and watch your business prosper too. Please trust in us as we go on this journey together.

Phone:- +91–888-270-2020
Email:- [email protected]

Happy Office Hunting

Indian Sellers And The Future Of e-commerce In India

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The virus and effected the business and reduced customer buying all over the world. This situation has made the business grow uncertain but online e-commerce is growing very fast. And long term growth of e-commerce is very bright in India.

Customer’s buying habits have changed. By connecting offline businesses with e-commerce, the future of businesses will be great.

What is the eCommerce potential in India
Future of eCommerce Sellers in India – GST Registration

Indian online eCommerce orders are increasing

Retail store sales have fallen to 6.2 percent. Even some clothing store sales have fallen to 50 percent. Retailers who are connected with e-commerce have seen their sales grow. Target company saw online sales grow by 275% in April 2020. Some people think that e-commerce growth is temporary, but in reality, the growth of e-commerce is going to stay for a long time. Online customers trust e-commerce players like Amazon, Flipkart, Snapdeal, and really enjoy the comfort of home delivery of a variety of products.

More than 52% of the customers who are buying grocery online, would like to buy online only, even if things become completely normal, customers have found the transparency and benefits of buying online, like without the need for standing in line and waiting to buy products. The retailers who are not connected to e-commerce will lose a lot of their business and customers, as most of the customers have shifted their mindset from physically buying products to buying through online e-commerce platforms.

Online e-commerce channels are growing: – Companies who are doing marketing on digital online platforms will grow more at this time when even competition has reduced.

A global slowdown of businesses increases entrepreneurship:- entrepreneurs are finding new ways to streamline their business. The necessity to find new ways to do business is growing; this thought did not exist before. We are going to see more digitally focused businesses in the future. Like e-commerce and virtual office remote working. We should make ourselves ready for a digital future:

The impact of the virus will accelerate the change from physical brick and mortar retail to e-commerce retail, by investing in online e-commerce. This is the right time to a joint online platform, those who have not done so. Businesses that are connected with e-commerce platforms are at a safer side. Ecommerce delivery speed is also given more importance by customers when purchasing products.

What is the future of eCommerce in India
E-commerce Sellers get GST Address Using Virtual Office Address

Businesses should grow stronger:- This time is having many difficulties for retailers, but we should also understand the business importance of e-commerce. The retailers should keep all the options open; they should have offline as well as online e-commerce sales platforms open.

Few advantages of online eCommerce business in India

  1. Businesses can work 24/7.
  2. Better customer service and business flexibility.
  3. Reduce the cost of business.
  4. Delivery of product all over India, in the fastest way possible.
  5. Professionally handling of business and customers.
  6. Environment-friendly online business.
  7. Control your business from any location at any time.

Now a day’s customers or clients want to first visit the website and get information about the business and then they can take the decision to visit the office physically, this saves time.

Before planning the online business one should consider these points:-

  1. Do your own research on competitors and their strategies and learn from them.
  2. Think of your budget and even think of how to handle loss in business and how to overcome losses.
  3. Understand the laws of doing business like GST law etc.
  4. Think about the type of computers and software required.
  5. Think about the training, which will be required for your staff.

Minimal cost of online business with the use of Virtual office:- For online e-commerce business there is no need to buy physical brick and mortar office, one can start a business by taking virtual office at the premium business location and work from home at a minimum cost of Rs. 1000/per month from InstaSpaces or contact 888270202.

Flexibility:- Online e-commerce business can be done from any location and at any time, one just needs a laptop and internet connection.

Unlimited global business Markets:- With online business, one has unlimited access to business markets all over the world. One just needs to understand the need for a specific business location and sell products and services all over the world.

Online Marketing reduced cost:- Marketing on the internet can be done with no cost or with just the cost of the internet connection. By creating a blog or by writing articles and creating social media accounts and doing social media markets for free.

Online payment transactions can be done easily:- One can set up a secure page on their website for customers to pay for products with debit or credit cards or by online payments. In the end, I would like to say online e-commerce business is great to join.

Online e-commerce sellers should be aware of Virtual office services provided by www.instaspaces.in this digital age, the virtual office address is being used by online e-commerce sellers to get their GST registration and business registration done on PAN India. The virtual office address is highly beneficial for e-commerce sellers because it helps sellers to take GST registration at multiple locations at a very low cost of Rs.1000/per month.

If you’ve got any query, visit the web site and connect with our skilled support team for the detailed view.

Phone:- +91–888-270-2020
Email:- [email protected]

Happy Hunting!

Major Problems faced when selling on Amazon and Advice for Amazon Sellers

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Within a few years Amazon has grown big by selling unique products and setting up fulfillment centers in different locations in India.

What are the benefits of taking a GST number through a virtual office address in India
GST Address for e-commerce Sellers in India

There are some problems which Amazon sellers face:-

Problems faced by Amazon sellers

  1. There are some entry barriers for sellers in Amazon:- Selling on Amazon is strict regarding who is given approval to sell, what item can be sold and how will the items be sold.
  2. Amazon payments are given to their sellers every 14 days.
  3. Amazon selling has become very competitive for sellers:- There are many sellers who do not manufacture their products, they just buy products in bulk and sell on Amazon. This creates a tough competition. Amazon has given its sellers ideas to keep its products unique. Amazon repricing software, also helps sellers to re-price its products as per market pricing and this ultimately helps customers to buy the cheapest products.
  4. Getting positive customer reply is difficult to get:- Getting feedback is difficult on Amazon because out of 30 customers only 1 customer gives feedback on Amazon.
  5. Amazon system can restrict the sale of products at any time:- Amazon wants that only the real owner of the products can sell their products on Amazon. And if a third party seller is selling products on Amazon and keeping its products at Amazon fulfillment centers. Then if the real owner of the products also starts to sell its products, then the third party seller will not be able to sell products, and his product sales will be restricted, even third party seller need to pay to Amazon to take his products out of Amazon fulfillment centers.
  6. Amazon procedures and difficult:- In the Amazon FBA program, items are stored in the warehouse of Amazon, if the order comes, then Amazon packs and delivery the order. But many things can also go wrong like damaged products, lost products; sellers are also not given full reimbursement of the lost or damaged items.
  7. Seller also requires much different software’s to be ahead of other sellers.

Advantages/Benefits for Amazon for sellers

  1. Amazon sellers can use unique white-label goods and make them visible to millions of Amazon customers in the world.
  2. Amazon paid advert products are available on the Amazon platform.
  3. Amazon has specially assigned account executives for big sellers.
  4. Amazon provides coaching and study tutorials for Amazon sellers and their staff.
  5. Amazon provides loans on the basis of the volume of sales and sellers’ credit score is not considered for providing loans.
  6. Amazon offers to its sellers like a targeted advertisement, stock management, repricing tools, etc.
How can online sellers and ecommerce sellers use virtual office address for GST registration and business registration in India
Amazon Sellers get GST Address using Virtual Office all Over India

Amazon seller’s solutions

  1. Increasing profits as Amazon sellers:- Most of the sellers think of top sales figures and not bottom-line sales figures. For sellers, a top-line sale also reduces the revenue to the low level. There are not many benefits for big long term sellers in Amazon. Bottom line sellers who work at lower costs can also increase their bottom line profits every year.
  2. Amazon product listing:- Amazon sellers can enhance Amazon listing from the data available on the amazon seller central dashboard. Sellers can use Amazon sponsored product ad reports. Sellers can use the same keywords by the Amazon customers buying products. Some of these keywords will result in sales, as most of the sellers are not aware of this. Adding these keywords on product listing will increase product visibility and SEO; these products will be more visible on Amazon search and will give more sales.
  3. Amazon sellers should use Virtual office address for GST registration in India:- It is mandatory for Amazon seller to take GST registration if they are selling their products in other states, and it is also mandatory to have and able to show the proof of office address for GST registration in other states. Taking office on rent will be very costly for any seller in other states or multiple states. The best solution for this is a virtual office address, which comes at a cost of Rs.1000/ per month. For more information contact 8882702020 or visit www.instaspaces.in.
  4. Earn more business without marketing:- As Amazon has millions of customers worldwide, the seller will get repeat business if their product and services are good.
  5. Amazon sellers need not pack and ship their orders:- In FBA program packing and shipping of products is taken care of by Amazon. As 70% of the sellers are on FBA. Even sellers have said that their sales increase by 20% after taking Amazon FBA service.
  6. Amazon back end office support:- includes goods tracking, credit card processing, sales tax, etc. All is taken care of by Amazon back end office support.
  7. Amazon product referrals:- Amazon algorithms let customers see other related products on the Amazon website, which increases product sales.

InstaSpaces: Low-cost Virtual Office Services Provider for GST and Business Registration in India.

InstaSpaces is the only virtual office service provider, providing services all over India or PAN India. A virtual office address can be used for GST/Business registration. The whole process of providing a virtual office is done online. This saves lots of time and money. The virtual office is given in three working days. A virtual office is the cheapest option to start a business or to get GST registration done in other states or multiple states.

A virtual office is not just virtual, a virtual office is always given at a physical office location like a business center or co-working space. The trend of using virtual offices is increasing day by day because it is very flexible and budget-friendly to use. The future of virtual office service is very bright.

InstaSpaces handles every particular legal formality in terms of GST registration. Hope this information can help you to make a big move in being a part of InstaSpaces. If you’ve got any query, visit the web site and connect with our skilled support team for the detailed view.

Phone:- +91–888-270-2020
Email:- [email protected]

Happy Hunting!

Benefits of Online Selling in India

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Goods selling is an important core business activity of any organization, which creates value for any business. With the growth in new technology like the internet, businesses have grown to a new level in the world. In this article, we try to understand the benefits of online e-commerce selling in India. There was a time when selling used to be done on one to one basis, but now selling of goods does not have any borders. Online selling is operating 24/7 and there are no borders. This is the advantage of online selling. Most of the businesses are only running online and more and more people are becoming online sellers.

Benefits of Online Selling are explained below

If you are selling online, then you need to think like the full world is your market.

  • In Online selling, your products are visible at the international level:- So in reality, your products will be visible to customers 24/7. And orders for your products can be placed at any time, it means even when its night time and you are sleeping, your customers can see your products and place orders. Many unique product sellers only sell online or through e-commerce platforms like Amazon. As they are aware of the international reach of online e-commerce selling.
  • 24 hours Business:- We need to understand that traditional selling use to happen only in the day time. But online selling can happen any time and from any location in the world. With online transactions, payment can also be made at any time. Delivery of the products can be scheduled as per the requirement of the client.
  • The cost of operating an online business is less as compared to traditional business:- Business is done to provide good quality products or services and to earn a profit. The sale of products and the demand for products in the market depends on the market situation. But the cost of running a business is in the hand of business owners. Most of the online businesses do not have to pay for recurring costs like physical office rent, office maintenance, AC, Electricity payment, etc. So in simple words, online selling/sellers need not have to worry about the recurring cost of rent and electricity bills, etc.
  • An online business can be measured with Analytics:- Online business owners can analyze their business, like how many customers are visiting, how long customers stay on the webpage, from which location customers are coming and buying, how much sales are happening daily, weekly, monthly. Monthly sales differences can be analyzed. I mean to say with analytics, business owners know how the business is running and what can be done for further growth of the business.
  • GST compliance in online e-commerce selling:- GST registration is mandatory for online e-commerce sellers. Which most of the online sellers are aware of? But online sellers need to also be aware that if they are selling their goods in other Indian states, they have to take GST registration in other states also, it is mandatory for GST compliance. There is a high possibility that online sellers mostly need to take GST registration in multiple states of India.

But to take GST registration it is mandatory to be able to show the proof of office address in that state. Renting an office address is very costly for online sellers to rent an office. So the best solution for online sellers is to go for a virtual office address. The cost of a virtual office address is Rs.1000/per month. If we compare the cost of taking office on rent, the cost of a virtual office address is very low. Multiple state GST registration can be done with virtual office addresses all over India. InstaSpaces is the best virtual office service provider in India. Online e-commerce sellers can visit website www.instaspaces.in or contact 8882702020 for more detailed information.

  • Online Business Payment:- Online payment operates 24/7, it is very fast, One does not have to wait to deposit a cheque and wait for the funds to get transferred manually to your bank account. Online payment can be done from any location at any time. The company can select multiple online payment options like Debit card, credit card, Net banking, wallets, etc. Creating an online payment account is easy and can be done any time with smartphones or laptops etc.

The Internet is available mostly all over the world. More and more people are joining online e-commerce business.  More and more customers prefer buying products online, as people are busy in their jobs; they get less time to go shopping, so online buying is the best option for them, which can be done at any time. Online buying helps customers to compare the cost of products and buy the best quality product at the cheapest price.

In the end, I would like to say that the future of business in India and the world is an online eCommerce business. Those sellers who are not able to connect with online e-commerce business because of any reason, they will be able to grow or be competitive in the business environment. So my advice is people should gather more information on online e-commerce business and make themselves more aware of the benefits of online e-commerce business and try to connect and grow with it.

If you have any queries visit the web site and connect with our skilled support team for a detailed view.

Phone:- +91–888-270-2020
Email:- [email protected]

Happy Office Hunting!

I am planning to start selling in Flipkart or in any other eCommerce Website

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In the current scenario, when we see our world booming with tremendous traction as a result of digitization, there are countless opportunities for customers to shop online and get the desired item on the doorstep. Due to increasing internet penetration, people have completely relied on eCommerce business, with no regrets. As e-shopping is impressively winning the market and easily reaching customer needs, the demand for eCommerce business has got no plans to swing down in the future.  

Gone are the days, when we used to visit the shops and spend hours selecting one single item and return home. But now, there is nothing like before. If we have an idea to purchase any of the items no matter it’s clothing, electronics, or real estate, we are just one click away and things get done at ease. Well, it’s not only about shopping but small, medium, and large size enterprises businesses are also showing an interest in keeping the products for sale on eCommerce websites. 

How to start selling products on eCommerce sites using virtual office
GST Registration for online Sellers in India

We at InstaSpaces believe in helping people understand the importance of selling your products on eCommerce websites and make you win maximum customership on your product with the help of a digital platform. 

For selling your product online, there are several eCommerce websites where you can easily register and sell your products. The eCommerce platforms such as Amazon, Flipkart, Myntra, and others are the ones where you can easily put your products on sale after register. However, Flipkart can be the most convenient option for you to market your product.

This eCommerce platform has easy access to the list and ships your products. Before putting your product on sale, Flipkart Seller Registration has some specific registration formalities which are compulsorily needed to be done, but when you know what to expect, you can register and start selling in no time. 

Advantages of Flipkart Seller Registration

Flipkart is believed to be one of the most recommended eCommerce platforms in India. Customers got handy using Flipkart, and they have faith that it delivers quality items. If you’re interested in selling your products on Flipkart and increase your customer base, Flipkart is the best choice you make for a day.

As Flipkart proudly owns 10 million users base every day, which can help increase the scope of sale on your product. This platform is loyal in collecting taxes and makes it easy to track sales. All of this convenience comes at a cost, for every individual sale you make.

Documentation for Flipkart Seller Registration

Be visiting the registration staircase, it is necessary to have a few documents handy. As you have made your decision on selling your product on Flipkart, you require all the goods and services tax schemes, so you’ll need your GSTIN. Other things you require are: 

  • Your personal or business PAN Card
  • Bank Account details
  • The witness of your Customer Documents, including proof of your address and a canceled cheque.

No matter you are doing registration by your company name or an individual, these are compulsory to submit before your register sells on Flipkart.

After you Register on Flipkart

Once you are done with the registration, Flipkart requests you to give 15 days of the time period to verify your business documents for the Flipkart registration. After verifying your documents, you can start listing your products. All product payments and sales are deposited on your provided bank account. 

This was the process we discussed to sell a product on Flipkart. Now let’s discuss something on GST registration before you sell your product on any eCommerce websites.

How to get online sellers virtual office address for GST Registration
GST Registration for Flipkart Sellers using Virtual Office

GST registration is necessary to sell goods through any eCommerce websites in India as the sales made through electronic commerce operators are to be registered so as to affect the collection of tax at source. For Amazon, it is around 2% under Section 52 by Amazon. Further, Section 24 of the CGST Act, 2017, makes sellers compulsory to persons supplying goods or services through eCommerce platforms such as Flipkart, Amazon and more to register under GST law irrespective of their individual turnover crossing Rs 20.40 lakhs.  

There are several different criteria defined by the government wherein registration under GST is a compulsion for such taxpayers. Therefore, one of the crucial criteria for registration is where the assessee is dealing with any eCommerce Operator then that person has to take registration under GST. 

One major benefit for Flipkart Seller is that it can use InstaSpaces which is one of the leading virtual office spaces in India that provides cost-effective GST registration services. Making GST registration as a Flipkart seller can help you get proof of place of business for GST registration in that particular state, rather than getting any physical office space.

Hope this information is enough to be delivered. If you’ve got any query, visit the web site (InstaSpaces) and connect with our skilled support team for the detailed view.

Phone:- +91–888-270-2020
Email:- [email protected]

Happy Hunting!