Dear Sir, I have a Publication Trust. I have started an online bookstore. The website is ready with a payment gateway facility. (ccavenue) The debut book will be published within a month. I would like to know about the tax details, if any. The Price of the Book is Rs 125. Shipping charge is Rs 40. What is the Tax rate and how shall I calculate it? Is there anything I should know legally ? My email id is : [deleted] Thanking You Sajid A Latheef
Hi,
Hope you are doing well!
Legally you should know following things:
If your annual turnover is greater than Rs. 20 lakhs, then you have to get yourself registered under GST.
Books, generally are not exempted from GST. Specifically, you will have to check notification 2/2017 -CGST rate if the books that you sell are exempted.
Thanks & Regards,
Payal Chhajed
Hi Sajid
Being an online seller, you would require compulsory registration under GST.
What kind of book is it? The GST rate shall depend on its classification. It may be zero rated too.
Freight, if charged separately, shall be chargeable to GST @ 5%.
Also, GST shall be bifurcated into CGST and SGST OR IGST depending upon the place of customer.
If there is any export of books, you may apply for LuT beforehand.
We may help you with GST registration and filings.
Hi,
You will need to get yourself registered under GST. We can help you with the GST registration and various filings.
Regards,
Nikhil.
Thank You for the reply. The Books I sell through the bookstore will be Fiction. And the annual turn over is not expected over 20 lakhs. Should I register? From where can I make sure that printed books is exempted or not? Is it possible to add the shipping charge along with book price?
Hi
The books as provided by you are zero rated and hence no GST shall be levied. Mention the shipping charges in the invoice and no GST shall be applicable on shipping charges too.
However, since you have an online bookstore, you become an e-commerce operator. For this, GST registration shall be required. Although there is no GST applicability, but GST registration and periodical return filing is mandatory.
It is advisable to sell through an existing online seller to avoid such unnecessary GST formalities.
Please take a second opinion before operations.
Also, if you are paying royalty to any authors, there would arise GST implications on the same. Let us know if you would be paying any royalties.
Dear Sir,
1) For an online seller there is no threshold limit for GST registration. You need to obtain GST registration.
2) Tax rate is 18%. Please confirm it with other professional to avoid penalties and taxes in future.
3) You need to charge GST on all sale of books.
4) Taxable value will be computed after including all incidental expenses i.e shipping into the price of the book.
Thanks
Hi,
Yes, it is possible to add shipping charges in the invoice.
Thanks & Regards,
Payal Chhajed
Since you are doing business online, GST registration is mandatory irrespective of the turnover you may have.
Since you are in to online selling ,GST registration is mandatory irrespective of turnover limit.
