What are the GST implications for dropshipping in India from UAE?

[deepak_dk]

@Victor I have created shopify e-commerce website & i am located in UAE. I have my bank accounts and company registration, everything in UAE

For example- I sell ladies purse on my website, and i sell it to any customer located in any country around the world.

Now as per the dropshipping business model, my product supplier or product manufacturer is in India/Indian company.

I have purchased 10 thousand purses from this indian supplier on X price, i paid him his total price + GST in full. I have further done a contract with him that he will store these products for me in his own warehouse, and ship the products on my behalf to any place where & when required, however I will be paying for the shipping price to the shipping agency by myself.

A customer from France, buys 1 purse from my website. I will make a simple invoice to the france customer for the amount he has paid without any taxes(as no taxes are applicable in UAE) and then I tell my indian supplier to ship it to that buyer in France. 

Now similarly,  a customer from India buys 1 purse from my website. I tell my indian supplier to ship it to that indian buyer, so what is the GST implication for me as a company based in UAE? 

Do i need to get myself registered in India? and if yes, then how can i do that without any physical presence or office in India? Even my supplier is not clear about this theory !

[NashAlFannia]

I have a similar question and looking for an answer. @deepak_dk did you get any response? Are you still running the business like the way you mentioned? Thanks. 

[Venuestore]

Hii Deepak, it’s a smart move to concentrate on mastering the Indian market before expanding globally. India’s ecommerce landscape is vibrant and offers great opportunities. Here’s why starting locally is beneficial:

1. Local Market Familiarity
India provides a vast customer base with diverse needs. By starting with a local platform like Dropdash, you can benefit from efficient sourcing and fast delivery, making it easier to understand and cater to Indian consumers.

2. Regulatory Simplicity
Handling GST and other local regulations is simpler when you start within a single market. Using services that manage local compliance can help you focus on growing your business without getting bogged down by complex international laws.

3. Cost-Efficiency
Starting in India allows you to test your business model with fewer upfront costs. Platforms that offer local dropshipping solutions, such as Dropdash, provide the advantage of managing logistics and customer service efficiently within the country.

4. Scalability
Once you have a successful model in India, expanding to other markets becomes easier. Local success will provide you with valuable insights and streamlined processes that will benefit your international growth.

By focusing on the Indian market first and leveraging local platforms, you'll build a strong foundation for future expansion. Let me know if you need more information or have other questions!