The Goods and Services Tax or GST put into effect from the 1st of July 2017, is one of the biggest tax reforms in India and is set to revolutionize the way we do our taxes. GST will subsume more than a dozen state and central levies into one tax, coalescing the tax landscape of the highly diverse country of 1.28 billion people, into a single and cohesive picture.
Moreover, GST will grant Indian businesses access to the entire national market without having to invest heavily in a nation wide warehousing and distribution network and in the process, further propel the country’s economy.
With the many benefits that it brings, GST is also a matter of concern for businesses as they define and streamline their processes to comply with the new system of taxation. The law is expected to especially affect the country’s burgeoning e-commerce market, as many e-commerce vendors are likely to be caught unaware of the changes.
In Section 43B (d) of the MGL (Model GST Law) – Electronic Commerce is defined as the, “Supply or receipt of goods and/or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services, universal description Discovery and Integration (UDDI), File Transfer Protocol (FTP) and Electronic Data Interchange (EDI) whether or not the payment is conducted online and whether or not the ultimate delivery of the goods and/or services is done by the operator.”
This is a pretty broad definition and chances are that your online store/marketplace, also falls well within it.
Thus, e-Commerce businesses are in the race to align their accounting, taxation, and legal practices with the new rules as well. They are thus in search for the right software solution, which can help them migrate their operations to this new tax regime. Alignment is a must now, considering that most large e-commerce marketplaces in the country, including Flipkart and Snapdeal, have made it mandatory for their vendors to supply them with GSTIN numbers.
However, alignment for an e-commerce store owner means ensuring that he/she is compliant with the government recommended practices on the basis of law, accounting, and a multitude of other areas. This means a serious overhaul of the existing structure and significant expenses, as you bring in experts in their respective areas to help you substitute your existing practices.
To assist Magento store owners in implementing the latest tax format for online sales, CedCommerce has developed the Indian GST Magento Extension that will incorporate the latest tax rules under the GST scheme and make your Magento store GST ready. Just like that!
Benefits of Indian GST Magento Extension:-
Here is a rundown of exactly what, the CedCommerce Indian GST Magento extension is capable of doing for your store.
1) Install GST tax classes:
Indian GST Magento Extension: Appropriate tax classes, rules, and rates are automatically added Magento store
After installing the Indian GST Magento extension, appropriate tax classes, rules, and rates will automatically be added to your Magento backend. These tax classes are in accordance with the latest format of GST and will be used to determine the suitable tax rates for different products. In short, you will be spared the need to worry your head about the new tax schemes being brought about by GST.
2) State-wise tax computation:
Indian GST Magento Extension: Computation of SGST, CGST & IGST
As we know that the GST levied on the intra-State sale by the Centre is Central GST (CGST), and that collected by the States is State GST (SGST). Finally, there is the tax on the inter-state supply of goods and services, Integrated GST (IGST), which is collected by the Centre. So depending upon the location of from where the merchant’s shipping origins, and the customer’s address, the “Indian GST Magento Extension will determine the appropriate tax method and automatically apply to the transaction.
Just think of the trouble you will otherwise have, in trying to decide this single tax for your products.
3) Automatic tax split:
Indian GST Magento Extension: The splitting of taxes into SGST, CGST and IGST
With the Indian GST Magento Extension, CGST & SGST, both of these taxes are equally applied to all intra-State purchases made on the Magento store. For example, 9% CGST and 9% SGST will be applied on the sale of products that come under the 18% tax slab. However, that shouldn’t be a matter of concern for you as the Indian GST Magento extension will take care of these things for you.
4) Flexible tax rate configuration:
Indian GST Magento Extension: Assign GST rates against products
With the Indian GST Magento extension appropriate tax rate can be configured for a specific product according to the GST tax slab rates.
5) Additional tax slabs:
Extra tax classes of 0.25% and 3% are also included in the Indian GST Magento Extension to take into account products like precious stones and metals, which haven’t been allotted to any one of the GST slabs pegged at 5%, 12%, 18% and 28%.
6) Updated order details:
Indian GST Magento Extension: List GST product’s order view, invoice, shipment and credit memo
Appropriate GST (CGST, SGST or IGST), if applicable on any order, will be mentioned in the product’s order view, invoice, shipment and credit memo, and also in its transactional emails and pdfs.
The Indian GST Magento Extension will ensure that the order, along with the details of the costs incurred are crystal clear to all of the parties involved in the transaction.
7) HSN support:
Harmonized System of Nomenclature or HSN is used to ensure that the GST invoicing practices are in tune with international standards of product nomenclature. Since every business is required to declare the list of goods they are dealing with through their HSN code, an extra attribute for HSN is added for all Magento products.
This HSN code will also be mentioned in the product’s order details.
Note: CedCommerce is currently working on a new feature that lets you search and apply the appropriate HSN code for your product. This HSN code, when applied to the product, will automatically configure the appropriate tax rate applicable on that particular product. So keep an eye on that as well.
8) GSTIN support:
Each taxpayer is allotted a state-wise, PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Magento store owner’s GSTIN will be mentioned in their product’s transactional documents (invoice & Credit Memo), along with other order details.
CedCommerce Indian GST Magento Extension removes almost all obstacles that current e-commerce store owners operating their store in India are facing due to this massive tax reform. This extension will make your e-Commerce store fully GST compliant and allow you to accurately process taxes and embrace the new tax regime.
You can counter all these issues with the CedCommerce Indian GST Magento extension by your side, the new law should actually prove good for eCommerce stores across the country, by removing multiple taxes and allowing vendors to sell and transport their goods – anywhere within the country,
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