Etsy GST Registration | Etsy GST Mandatory | Etsy GST Return Filing | Etsy GST Update in India

Finance/Tax Content Summary (GST for Sellers Using Etsy / TC Platform)

Key timeline / mandatory change

• Oct 1, 2023: An email from the authorities (referenced as “AC”) states that from this date all Indian sellers must update/obtain GST; otherwise, they will not be able to sell products/services on the platform.

Why GST is imposed (reverse charge / cross-border services)

For foreign companies providing services to Indian sellers, the platform/foreign provider must:

• Charge GST under reverse charge and deposit it with the government, or
• Obtain the GST number of the Indian counterparty if they don’t charge under reverse charge.

This requirement is described as part of the platform’s terms and conditions.

Live example / how GST changes platform charges

Example (2022 context) for platform transactions:

• Transaction fee: 6.5%
• Previously, GST at 18% was charged on top of the 6.5% fee.

If the seller provides GST number + PAN to the platform:

• 18% GST is not applied on the seller’s transaction fee
• Only GST on the 6.5% is charged (i.e., reduced impact vs charging 18% extra on top of fees)

Additional platform-related withholding/collection mentioned:

• TDS: 1% on payments made on the platform to the seller
• TCS: 1% on payments collected from Indian buyers

Cross-border vs domestic tax treatment (export of services)

• No GST on export of services:
  • If delivering to a US customer while operating from India, no 18% GST is charged to the US customer.
• GST applies when the customer is in India:
  • For domestic delivery, the seller must charge GST according to the applicable rate (stated as 5% or 18%, depending on the item).

Compliance risk / business restrictions

• If the seller does not provide PAN to GST authorities:
  • Amounts may be held, and
  • Sellers may face restrictions preventing listing/starting products/services on the platform.

Explicit number claims about tax drag (TDS/TCS mismatch)

The content claims losses due to TCS/TDS treatment depending on customer location:

• 6% loss total implied because:
  • TCS of 1% deducted when serving an Indian customer
  • TDS of 5% deducted when serving an international customer

GST registration: required inputs and documents (individual/proprietor)

Documents mentioned:

• PAN card
• Aadhaar card
• Passport-size photograph
• Business address proof, such as:
  • Home address with supporting proof (e.g., rent agreement or electricity bill)
• NOC (No Objection Certificate) is also mentioned

Example uploads described:

• Rent agreement / electricity bill / “Consul Letter” (described as NOC) uploaded during application.

GST application flow / fields (step-by-step framework)

1. Go to the GST portal as a taxpayer.
2. Enter:
   • Personal PAN
   • Personal name
   • Create a TR number
3. Confirm application fields one-by-one as the GST application opens.
4. Select registration reason/type:
   • Voluntary basis (recommended in the narration)
   • Options referenced: composition scheme / casual taxpayer (said as requiring “nothing has to be done”)
   • E-commerce option available (for selling through an e-commerce portal)
5. Enter personal details:
   • Name, father’s name, contact details, personal address
6. Enter Principal place of business:
   • Address where business operates (also entered on a map)
7. Upload documents:
   • NOC / electricity bill / rent agreement
8. Select Nature of business:
   • Narration suggests selecting export if selling relates to Etsy/ITES activity
   • Alternatively retail/wholesaler if serving both Indian + international customers
9. Enter Goods & services / HSN codes:
   • Enter HSN code(s) for products dealt in
10. Submit via OTP:
    • Enter Aadhaar number
    • Submit using OTP
    • Track application using generated ARN
11. After approval:
    • Receive an email (“Welcome to GST Family”) with GST number + user ID/password
    • Download the GST certificate

Etsy platform update after GST certificate

After receiving the GST certificate:

• Log into the Etsy portal
• Go to Finance → Legal and Tax Information
• Upload GST information

GST return filing requirements (explicit compliance rule)

• Returns filing is compulsory once you take GST.
• Even if you:
  • charge 0 GST on exports of services, you still must:
    • report the export nature in returns, and
    • include a sales list/details showing where GST is not applicable.

Tickers / instruments / assets mentioned

• None. The content is focused on tax/compliance; no market/investment tickers, ETFs, bonds, commodities, or crypto are referenced.

Disclosures / disclaimers

• No explicit “not financial advice” disclaimer is included in the provided subtitles/summary.

Presenters / sources

• Presenter/narrator: “guys” (no specific individual name provided)
• Sources referenced:
  • GST portal
  • Income Tax India portal
  • Etsy / TC/TS platform account
  • Government/authorities via email (no specific individual named)