Meesho and Myntra are two of India's leading e-commerce platforms, offering sellers access to millions of customers. Like other marketplaces, they require sellers to comply with GST registration and return filing obligations. This article explains the GST requirements for Meesho and Myntra sellers.
Is GST Registration Mandatory?
Yes. Under Section 24(ix) of the CGST Act, 2017, any person supplying goods through an e-commerce operator that is required to collect TCS must register for GST from the first sale, regardless of turnover. This applies to sellers on Meesho, Myntra, and other marketplaces.
Meesho's Special Model
Meesho operates on a reseller model where individuals can resell products without holding inventory. However, for sellers listing products directly on Meesho, GST registration is mandatory.
Myntra's Fashion Focus
Myntra is a fashion-focused marketplace. Sellers of apparel, footwear, and accessories must comply with GST registration and product-specific GST rates.
TCS Deduction
Meesho and Myntra deduct TCS at 1% on the net taxable value of supplies. The TCS is deposited with the government and reported in GSTR-8 . Sellers can claim this TCS credit in their GSTR-3B .
GST Rates on Products
The GST rate depends on the product category:
- Apparel and clothing: 5% or 12% depending on the value.
- Footwear: 5% or 18% depending on the value.
- Accessories: 18%.
- Cosmetics: 18%.
Return Filing for Meesho and Myntra Sellers
- GSTR-1: Monthly or quarterly return for outward supplies.
- GSTR-3B: Monthly summary return and payment of tax.
- GSTR-9: Annual return.
ITC for Meesho and Myntra Sellers
Sellers can claim ITC on:
- Packaging materials.
- Shipping and logistics.
- Marketplace commission and fees.
- Advertising expenses.
Compliance Checklist
- Obtain GST registration before listing products.
- Reconcile marketplace reports with GST returns.
- Claim TCS credit in GSTR-3B.
- File GST returns on time.
- Maintain proper records of all transactions.
Conclusion
Meesho and Myntra sellers must comply with GST registration, TCS, and return filing requirements. Proper reconciliation and ITC claims are essential to optimise tax costs.
At Anuj Desai & Associates, we provide end-to-end GST compliance services for Meesho, Myntra, and other marketplace sellers. Our team can help you with registration, return filing, TCS reconciliation, and ITC claims.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.