In this era of technology and advancement, e-commerce has been an art of smart selling. Think of anything, and you get it at your doorstep in just a click. E-commerce has made life much simpler by providing everything that we can name at the doorstep. People have been inclining towards the use of such e-commerce portals. And Flipkart being one of them has acquired around 10 Crore customers with 3 Crore registered users. Therefore, it becomes an immense opportunity for a seller to increase its customer base and reach out around 10 Crore customers throughout. Learn how you can register and the benefits you can avail.
To start selling on Flipkart, an individual, needs to sign up on the Flipkart Seller Registration homepage. The process for signing up is as easy as creating a Facebook Account. The seller can sign up by providing certain basic information about himself, about the business and the products he wants to sell. Certain basic information which is required during registration is listed.
In addition to the basic information about himself, the seller is also required to furnish Flipkart with various other business related information depending upon the type of business as mentioned.
If the seller decides to sell in his own name and legal standings, the business will automatically be professed to be a sole proprietorship business. However, in case of a sole proprietor, the liability is not limited and no protection is provided to the promoter. Also, it is not easily transferrable and cannot have investors and partners. Following details and documents need to be submitted by a sole proprietor.
The liability of an LLP is limited. Hence, it is advisable to always register as a partnership firm as it provides protection against unlimited liability. It is also easily transferable and is considered to be a separate legal entity. Following details and documents need to be submitted by an LLP.
A Private Limited Company is the most preferred form for seller registration as it has the ability to take on investors and scale up the operations. Following details and documents need to be submitted by a Private Limited Company.
A seller can also register itself as a Trust or a Foundation. Similar documents need to be submitted as in case of an LLP or a Private Limited company in order to prove its legal identity and proof of address.
|Selling Price (decided by the seller) (A)||1000|
|Flipkart Commission (varies from product to product) (B)||50 (5% – assumed)|
|Shipping Fee (as applicable) (C)||30|
|Fixed Closing Fee (fixed by Flipkart) (D)||10|
|Total Marketplace Fee (B+C+D)||90|
|GST (rates varying form product to product) (E)||50|
|Total Deductions (B+C+D+E) = (F)||140|
|Settlement Value (Credit to the seller) (A-F)||860|
Initially, the VAT/CST was to be paid by the seller to the government. After the introduction of GST, e-commerce operators (Flipkart) collect the amount at the rate of 1% (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it. The amount so collected is known as TCS (Tax Collected at Source).
The TCS will be applied on one month’s collection which will be paid to the government. This amount of TCS will be seen in the GSTR-2 of the registered supplier on behalf of whom the collection is done.
The seller needs to submit an online statement, which has the details of all the products sold through the portal and the TCS in Form GSTR-8. The details furnished by the operator in his form will be matched with that of the respective seller in his form.
[ Read: Impact of GST on E-Commerce ]
A. Yes! Flipkart offers various attractive reward programmes to its registered sellers.
A. Flipkart has set up a Seller protection Fund (SPF) to protect the sellers against Fraud. The seller can request for SPF claim through the seller dashboard.
A. Wait for the PIN Code to become serviceable or try with some other PIN Code.
A. Apart from certain products which do not attract GST, it is mandatory to have GST Registration.
After implementation of GST, the tax compliance requirements changed drastically. As a result, several businesses find it challenging to focus on their business while trying to be GST compliant. This is where we come into the picture. Our team of in-house GST experts can help you meet all the GST compliance requirements right from registration and filing of returns to handling notices.