I will be starting my Shopify store soon. I am an Indian citizen. I have my proprietorship, my GST number with me, all registered in India. I would be drop-shipping from Chinese suppliers all the way to USA. My CA told me that we have to enter our GST number in our ecommerce website settings as well. Is the same thing followed in Shopify drop-shipping as well, because my accountant has not dealt with drop-shipping business. This whole drop-shipping model is not known to many in India. Please reply ASAP
Nick here from Shopify. good question!
The same concept would follow for dropshipping within Shopify. In terms of how it looks on the legal side of things, it would be the same. The main difference with dropshipping is how you source and fulfill your products more than anything. You would still be running and conducting your business from within India under Indian laws and regulations.
Shopify has a helpful guide on everything to do with GST in India which I think you might find valuable. It discusses the difference between GST, CGST, and SGST as well as who GST is mandatory for which you can see in the screenshot below:
You can read the helpful guide Shopify made for this from the link here.
Hopefully, this helps and answers your question.
All the best, Nick
Thanks for the prompt reply. I discussed with my accountant regarding this, and turns out that I dont need to pay any GST for now as GST council has not devised any plan for dropshipping business which is neither importing or exporting to India. On that we just have to pay the income tax on our profits. However, the thing is that as I have already taken a GST number- which btw is required for running fb and google ads; I would still have to file the GST.
But in all this scenario would I still have to integrate my GST number to the shopify store ?
Whether or not you set up and integrate your GST into your Shopify store is completely up to you. If you have spoken to your accountant as well as see the list above of when it might all be mandatory and still don't feel it's necessary to integrate it then you don't need to if you don't want to add it.
If you are selling your products through eCommerce portal then GST registration is compulsory. Thus, the threshold Turnover limit for GST Registration is Rs. 40 lakh for a supplier of Goods. However, this limit is Rs. 20 lakh for the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand.
Thus, as soon the supplier of goods crosses the above limit he needs to take GST registration and pay the regular tax. Also, he needs to file all GST returns as per the current law. you may read more about GST registration limit at www.gstindianews.info website.
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