Seller agrees that seller will be compliance with the provisions of Integrated Goods and Services Tax (IGST), Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST) and Union Territory Goods and Services Tax (UTGST) in respect of the goods/services supplied by Seller. You agree that it is your responsibility to charge appropriate GST on the goods/services you sell on vedson and collect it from the buyer. You agree that it is your responsibility to pay GST or any other tax to the Indian Government or Tax authority for the sales of goods/services you have done on vedson platform.
GST is a unified tax levied on both goods and services. In the GST regime, both the central and the state governments will impose GST on the same transaction involving supply of goods and/or services. Each taxable transaction could either attract 1) CGST and SGST/UTGST or 2) IGST, CGST and SGST/UTGST will be levied on supply of goods and services within the state/union territory (Intra-state Supply) and IGST will be levied on supply of goods and services between two states/UT and on import (Inter-state supply).
You agree that you are solely responsible for preparing, making and filing any tax audit report and any other statutory report to the Indian government/tax authority and other filings and responding to the tax or financial audits.
You agree that vedson is not responsible for any collection of taxes from the buyer for goods/services you sell on vedson platform. You agree that vedson is not responsible for any payment of taxes to the government or tax authority which you have collected from the buyer for the sales of products/services you have done on vedson platform. You agree that vedson shall not be responsible for any deficiency and/or omission on your part.
You agree that tax collection at source (TCS) under IGST, CGST, SGST and UTGST, vedson platform would collect tax collection at source (TCS) at applicable rates on net value of taxable supplies made through the vedson platform and that amount we will remit to the appropriate Government Tax Authority. If due to any error or omission from your side in the pricing, taxes or any other mistake in any of the sales you have done on vedson platform, for that if any deficit TCS or any taxes we have to pay to the government than you agree that you will pay us immediately within 5 days from the date of our intimation to you or you agree that we may deduct that amount against your other sales amount which we will be paying to you in your bank account.
GST is a consumption based tax. Therefore, GST of the state/UT where the goods and services are actually consumed will apply. While SGST needs to be paid State-wise, CGST and IGST have to be paid on a consolidated basis. However, the place of supply, the location where the goods and services are actually consumed, have to be disclosed.
You agree that in case of any mismatches on account of tax collect at source (TCS), you shall be required to provide all the information to vedson and than vedson will correspond with the relevant information to the relevant authorities. You agree that if in case of any liability accruing due to omission or errors that shall be your obligation to pay such deficit amount.
You shall be required to provide Harmonised System Nomenclature code (HSN Code) for every product/services listing and also appropriate GST % with that HSN Code. HSN code is mandatory for any product listing, if in case you are not providing HSN Code for any product listing than we will delist that product/services listing and you will no longer be able to sell the product/services on our vedson platform.
You have to provide us your GSTIN number, GSTIN Certificate, PAN Number, TAN Number, and any other documents required by us without which we will not be able to raise invoice on you. If you are not providing above information transactions on your account will be blocked and the orders will not be processed on your account. And also we may hold your amount which is with us of any orders.
You are free to sell your products/services on any other platform. We do not compel anyone to sell exclusively on our platform, you as a seller is free to sell your products/services anywhere and on any other platform also. If anyone from our company has given you in writing or oral that you can exclusively sell on our platform than it must be waived off, we by this seller terms of use agreement convey you that you are free to sell your products anywhere and in any other platform as per your wish.
You agree that if for any reason any TCS, TDS, GST, withholding tax, income tax or any other dues or taxes under applicable law are determined to be deducted and deposited on any payments or remittance to you anytime than vedson will have right to deduct and deposit any such applicable taxes with the appropriate regulatory authority and that amount will be deducted/adjusted/set-off from your any old order payment or any future order payment. You agree that you will not make any claim on vedson in respect of the taxes deposited by the vedson on behalf of you to the regulatory authority.
In case if we require any GST return, audit report, or any financial report from you than you agree that you will give us on immediate basis, and if you don’t give us what is required by us than for that you will be only responsible for all the consequences.
You agree and undertake that you shall not at any time purchase more than 25% of your inventory to sell on vedson platform or its group companies.
You agree that in case of any discrepancy in the reporting/returns filed by you and vedson than you will resolve such discrepancy immediately with the vedson and indemnify vedson against any tax, interest and penalty payable in this regards. You agree that if you file any discrepancy in the reporting/returns than all the responsibility will be of yours and you will be liable for the same.
You are responsible to pay all fees associated with the use of the vedson platform and charges collected in respected of such usage, you agree to bear all the applicable taxes, charges, cesses levied or any other government taxes on such sales or usage of our vedson platform. You agree to pay all GST( IGST,CGST,SGST/UGST) as per application law of GST.
GST rate will be applicable on Ship from and Ship to locations. GST rates must be applied according to where the goods/services will be consumed.
In certain transactions, bill to location and ship to location could be different. In that case bill to location has no relevance, the levy of GST would depend on the ship from and ship to location only.
Ship from location (pickup address) means from where the shipment originates i.e the location from where the goods are actually shipped to the customer.
Ship to location means the location to which shipment is destined i.e the destination State/UT.
In order to determine whether a supply is an inter-state supply (attracting IGST) or intra-state supply (attracting CGST and SGST/UTGST), specific place of supply rules are formulated below:
1) Shipments where ship-from location and ship-to location are in the same State/UT: In this case CGST and SGST/UTGT will be applicable where ship-from location and ship-to location are in the same state/UT i.e the movement of goods is within the same State/UT. CGST and SGST/UTGT rate will be of the destination State/UT (i.e Ship to location)
Supply of Goods
Generally, for supply of goods, if the state/UT from where goods originate and the State/UT where they are delivered is same, then it qualifies as intra-state supply (subject to CGST+SGST/UTGST).
2) Shipments where ship-from location and ship-to location are in the different State/UT: In this case IGST will be applicable where ship-from location and ship-to location are in the different State/UT i.e the movement of goods is from another State/UT.
Supply of Goods
In State/UT from where the goods originate and the State/UT where they are delivered are different, it should qualify as inter-state supply (Subject to IGST)
Determining Tax Jurisdiction and tax type for services
3 things seller has to keep in mind while determining tax jurisdiction and tax type of services.
This requires information on transaction related information parameters to determine tax jurisdiction and tax type (i.e CGST and SGST/UTGST or IGST). These transaction related information are:
Location of the supplier
Location of the recipient
Place of supply of the service/goods
Notes for tax location and tax type
1) GST being a consumption based tax, in order to determine the State/UT where the services are consumed, specific place of supply rules are formulated.
2) According to the Indian laws, the services provided to customer located outside india would be regarded as export where the consideration is received in foreign currency. Hence, not subject to GST.
3) In certain transactions, bill to location and the location where the services are actually consumed may be different. However, the bill-to location has no relevance: the levy of GST would depend on the location where the services are actually consumed (in terms of the place of supply rules).
1. Location of the supplier: For GST purposes, registered place of business of the supplier will be considered as the location of the supplier. If the services are supplied by a supplier located outside india, the services will be considered as an import of service into india.
2. Location of service recipient: The location of the service recipient will be the address of the customer as available on the ordering details in Vedson Seller Panel.
3. Place of supply of service: The place of supply of service is typically the location of the service recipient. This rule may be subject to certain exceptions such as transportation of goods, event based services and training services. The place of supply of service will have to be determined on case-to-case basis.
Rate of GST
Goods
Goods are typically categorized under (5) bands of tax rates depending on the harmonised system of nomenclature (HSN) classification of the goods. Additionally, certain category of demerit and luxury goods such as pan masala, aerated waters and luxury cars will attract an additional cess. The seller will have to assign appropriate HSN classification of the goods while listing their product for sale along with the applicable rates. There are 5 bands of GST as below
1) Exempt
2) 5 Percent
3) 12 Percent
4) 18 Percent
5) 28 Percent
Service
There are 5 standard rates prescribed for supply of services. Further in addition to GST, cess may also be levied on certain notified services. However, currently there are no services which have been notified on which cess will apply. There are 5 bands of GST as below:
1) Exempt
2) 5 Percent
3) 12 Percent
4) 18 Percent
5) 28 Percent
Determining tax on the selling price for goods
The GST is typically payable on value of goods supplied, the selling price of the goods. Price variations and ancillary charges as described hereunder could be adjusted against the selling price.
1) Promotions: The GST on the price of a goods should be reduced by the amount of price-based promotions applied to them. For instance, promotional discounts and trade discounts are reduced from the price of goods for the purpose of calculation of GST. The discount will be adjusted in the invoice itself. Post sale discounts will not be deductible for GST purpose unless such discount is agreed at or before the time of supply.
2) Shipping & Handling Charges: Shipping and handling charges will be considered as a part of selling price. In determining the GST the selling price, separately stated shipping and handling charges should be assigned to or associated with the individual items in a shipment. If a consolidated shipping and handling charge is made, it should be allocated by value or any other justifiable parameter and attributed to each item being invoiced/shipped.
3) Shipping & Handling Taxability Options: Taxes on shipping and handling charges associated with individual items in a shipment should be calculated separately from the related individual items. By default, each shipping and handling charges should be assigned the same product taxability as its related item. This will generally result in shipping and handling charges associated with taxable items being taxed at the same rate as the taxable items being taxed at the same rate as the taxable items, and shipping and handling charges associated with non-taxable items not being taxed.
Time of supply of goods/services for GST calculation
All prices of the product and services listed on the marketplace are the prices are tax inclusive and taxes are estimated at shipment generation. Depending on how a shipment is fulfilled, a tax invoice will be generated in the system shortly after an order is submitted or immediately prior to product shipment.
Returns:
The customer return (sales returns) process for GST charged is a statutory or legal responsibility of the seller selling the relevant items in India. The filing of tax returns and reporting compliance is respective seller’s responsibility.
What are the advantages of getting registered as a regular dealer?
You can avail the following benefits, if you are registered as a regular dealer:
Claiming of Input Tax Credit: As a regular dealer can claim Input Tax Credit (ITC) of the GST paid on purchase and set of against output liability, whereas as a composite dealer cannot avail ITC of the GST paid on purchase. However, the availment of credits are subject to specified restrictions as provided under the GST laws.
No Geographic Restrictions – You can sell goods to customers, who are located in other states, i.e they can to make interstate sales whereas a seller registered as composite dealer cannot make interstate sales. This will significantly increase the market size and in turn, a change to get more sales to the seller.
Supplies on e-commerce marketplaces: You will be able to launch on the e-commerce marketplace and can supply to customers buying on the e-commerce marketplace, which in turn will increase the market reach and a chance to get more sales turnover and more profits.
Supplies to large business customers: When a composite dealer sells to a buyer registered as regular dealer, since no taxes are collected, the tax portion built into the sale price becomes a cost for the buyer.
However, when the regular dealer sells, the buyer who is registered under the regular scheme is eligible to claim credit of the GST paid on such purchases. This will open an avenue to supply to business customers increasing chances to get more sales and more profits finally.
Recovery of GST from the customer: You can recover the GST and discharge the same, whereas the GST is a cost to the seller, if you are registered as a composite dealer. A composite dealer cannot charge or collect GST on the bill of supply.
What are the disadvantages of getting registered as a regular dealer?
As a regular dealer, you need to face the following consequences:
Filing of returns: As a regular dealer, you have to file returns regularly as per tax authority rules.
Issuing of tax invoice: A composite dealer issues a bill of supply whereas the regular dealer will have to issue tax invoice for each supply containing various details as required under the GST law.
Mapping of HSN and Tax Rate: under the GST law, a regular dealer with notified annual taxable turnover need to mention HSN codes on the tax invoice. Further, unlike a composite dealer who is required to pay a fixed rate of tax on the entire turnover, a regular dealer is required to pay tax at the rates applicable to the items sold.
Maintenance of records: While both composite and regular dealers are required to maintain records books of accounts.