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

6 0 1

@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 !


Reply 1 (1)

3 0 0

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.