At Base.com, we’re here to help you grow your business while staying compliant with Indian tax regulations. As a company registered in Poland, our services could be categorized as OIDAR services under Indian GST law. As an Indian seller using base.com, it is important to understand how GST works when you receive invoices for base.com services.
How Does GST Work?
Goods and Services Tax (GST) is a comprehensive tax levied on the supply of goods and services across India. Since we are an OIDAR services supplier located outside India, for invoices provided by base.com to users of our system in India the reverse charge mechanism would get triggered. The recipient in India (Seller who is a registered entity under GST and a user of base.com services) will be liable to pay GST under reverse charge and undertake necessary compliances.
Example: Rajesh’s Invoice Breakdown
Note: First, It is mandatory for Rajesh to be registered under GST and provide his GST number to Base.com at the time of registration.
Here’s a practical example of how this works for Rajesh, an Indian seller who uses Base.com:
- Invoice Details: Rajesh receives an invoice for INR 500 from Base.com for usage in the previous month, say August. This invoice shall not include any GST as this invoice falls under the reverse charge mechanism.
- Filing GST: Rajesh is responsible for reporting and paying 18% of invoice value (INR 90 GST in this case) to the government when he files his monthly GST returns for August.
- Input Tax Credit (ITC): Rajesh can claim Input Tax Credit (ITC) of INR 90 paid, reducing his overall tax liability.
Key Responsibilities as a user of base.com system
- Paying the GST: While Base.com does not include GST on your invoice, it is your responsibility to file and pay the 18% GST.
- Using Input Tax Credit: You can claim ITC for the 18% GST paid on reverse charge basis by you concerning the base.com invoice.
- Filing GST Returns: Ensure you file your GST returns monthly through the GST portal to avoid penalties. Non-compliance can result in interest and fines.
Why This Matters
By staying on top of your GST filings, you ensure that your business avoids legal issues and penalties. Base.com is committed to transparency and providing clear invoices, but filing and paying GST is the seller’s compliance obligation.
We are here to support you in this process, ensuring you have the information you need to stay compliant and take advantage of the benefits, such as input tax credit. Together, we grow your business while staying compliant with tax regulations.
If you have any questions about how GST works with Base.com, don’t hesitate to reach out to us at [email protected], we’re here to assist!
