Hello Everyone
We are selling products across India dropshipped by Glowroad app. However, in India the tax settings work differently. The GST is charged at different rates for different product based on what category it falls into. This GST in India is further divided into three categories: SGST, CGST, IGST
How to know when SGST, CGST or IGST is applicable?
The locations of the supplier of the goods/ services and that of the consumer determine whether a combination of SGST and CGST will be applicable or only IGST.
Intra-state Transactions
For a transaction completed within the state, both SGST and CGST are levied at the time of collection. For example, if 1 tonne of coal worth Rs. 5000 is supplied by a supplier in Gujarat to a consumer in the same state, total 5% of GST will be collected by the supplier from the consumer. This 5% GST will constitute 2.5% SGST and 2.5% CGST, and will be directly diverted to the state and the centre.
Inter-state Transactions
For a transaction completed between 2 states, IGST is applicable. For example, if the coal supplier in Gujarat had sold the coal worth Rs. 5000 to a consumer in Maharashtra, IGST at the rate of 5% would have been collected. The IGST collected by the Centre is later divided between the State of consumption (i.e. Maharashtra in our example) and the Central Government.
Hence, for intra-state transactions, both SGST and CGST are levied. While for inter-state transactions only IGST is collected, which is later divided between the state and the centre. Notably, this does not create any difference for the consumer as the combined rate of SGST and CGST is always equal to the IGST rate. This system ensures smooth flow of taxes between the state and the centre without complicating the tax rates for the seller or the consumer.
Now the problem arises when the Glowroad app doesn't show what product is charged what percent of GST. If this much information was available, we could have made our tax settings based on the customer's location & product collection.
We tried connecting with them but no response on Email. We tried reaching out to Amazon as it was acquired by Amazon, no response from there as well.
Kindly someone help me in this regard.
We want to make sure our store is working in transparent and tax compliant manner.
