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GST for online sellers

GST Filing Cost for Online Sellers: Free Tool vs Software vs CA

✓ 6 official and published sources✓ Written for Indian sellers and small businesses

Filing GST as an online seller can cost you nothing but your time, a software subscription, or a professional's fee. The government charges nothing to file a return. One published range for a CA is Rs 500 to Rs 2,500 a month per GSTIN. AprilTax's Tax Experts file GSTR-1 and GSTR-3B for Rs 499 a month.

Key points
  • Filing on gst.gov.in is free. You pay only for tools or help.
  • A late GSTR-1 or GSTR-3B costs Rs 50 a day, capped at Rs 2,000 per return if your turnover is up to Rs 1.5 crore.
  • Tax paid late carries interest at 18% a year.
  • AprilTax: free GSTR-1 tool, or filing by a Tax Expert at Rs 499 a month (Rs 1,399 a quarter for quarterly filers).
In this guide
  1. What exactly are you paying for?
  2. The three routes side by side
  3. What does a year cost a small seller?
  4. What do late fees and notices cost?
  5. The mistake people usually make
  6. How should you choose?

What exactly are you paying for?

Two returns, every period. GSTR-1 lists your sales. GSTR-3B is the summary return where you set off input tax credit (the GST you paid on purchases) and pay the balance. A monthly filer files 24 returns a year. If your turnover is up to Rs 5 crore you can choose to file both quarterly, which makes it eight, though tax is still paid every month.

For a marketplace seller the hours go into GSTR-1: reading the reports, taking out returns, building the State-wise and HSN-wise totals. So the question is simple. Who does that work, and what does it cost you in rupees or in evenings?

The three routes side by side

RouteWhat you payYour timeWhat can go wrongWho it suits
Free tool, you fileRs 0A couple of hours a month once you know the stepsYou must still work out GSTR-3B and remember the dates yourselfOne GSTIN, simple purchases, comfortable on the portal
Paid software, you fileA subscription, plus add-ons for extra GSTINs, users or returnsLess typing, but you still review and filePaying for features that do not read your marketplace filesHigher volumes, several GSTINs, or a team doing the books
A CA or Tax Expert filesPublished range: Rs 500 to Rs 2,500 a month per GSTIN. AprilTax: Rs 499 a monthSending reports and purchase bills on time, then checking the summaryLate data from you means a late return. Unclear scope means surprise billsLarge input tax credit, more than one GSTIN, a notice, or no time

The time figures are honest estimates, not measurements. Your first month on any route will take longer.

File your GSTR-1 freeAprilTax turns your Amazon, Flipkart and Meesho reports into a GSTR-1 file ready for the GST portal, with the checks done for you.
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What does a year cost a small seller?

Take Kavya. She sells kurtis on Meesho and Flipkart, about Rs 2,50,000 a month before GST, on one GSTIN. She files monthly.

RouteYearly costHow it adds up
Free tool, files herselfRs 0About 24 hours of her own time over the year
Paid softwareDepends on the productPlan price plus add-ons. Ask for the twelve-month total in writing
CA at the published rangeRs 6,000 to Rs 30,000Rs 500 to Rs 2,500 for 12 months
AprilTax Tax Expert, monthlyRs 5,988Rs 499 for 12 months
AprilTax Tax Expert, quarterlyRs 5,596Rs 1,399 for 4 quarters

One more line may apply. GSTR-9, the annual return, is exempt for turnover up to Rs 2 crore, so Kavya at Rs 30,00,000 a year need not file it. If she chooses to, AprilTax's fee is Rs 1,499. More on that in who must file GSTR-9.

So is the free route always best? Only if the hours are really free and the returns are really right. That brings us to the costs nobody quotes.

What do late fees and notices cost?

Late fee. Rs 50 for each day of delay, per return (Rs 20 a day if the return is nil). For turnover up to Rs 1.5 crore the fee stops at Rs 2,000 per return, and at Rs 500 for a nil return. Miss both returns badly in one month and that is Rs 4,000.

Interest. 18% a year on tax paid after the due date. Suppose Kavya owes Rs 15,000 in cash and files GSTR-3B 12 days late. Late fee: Rs 600. Interest: Rs 15,000 x 18% x 12/365, about Rs 89. Total Rs 689 for one slip, more than a month of paid filing.

Overpaid tax. This is the bigger leak. If Rs 30,000 of returned orders are left in her sales at 18%, she pays Rs 5,400 too much that month. One such month wipes out most of a year's saving from doing it free. See how returns go into GSTR-1.

Notices. When your GSTR-1 and GSTR-3B do not agree, or your sales do not match what the marketplace reported, the department can ask why. There is no fixed price for answering. It costs days of digging through old reports, and a professional will quote for it case by case. Ask now whether replies are part of any fee you pay.

Unclaimed TCS. Marketplaces hold back TCS (tax collected at source) at 0.5% of net sales. On Rs 2,50,000 that is Rs 1,250 a month, Rs 15,000 a year. It is your money, but only after you accept it on the portal. Here is how to claim it.

The mistake people usually make

They compare only the fee. Rs 0 against Rs 499 looks like an easy choice. The real comparison is fee plus late fees plus overpaid tax plus your hours. A seller who files free but late twice a year and misses returns once has spent more than one who paid. Equally, a seller who pays Rs 2,500 a month for a return she could prepare in an hour is overpaying. Run your own numbers for last year before deciding.

How should you choose?

  1. Count your GSTINs and marketplaces. One of each points to the free route.
  2. Look at your purchases. If input tax credit is large or mixed, get a person for GSTR-3B.
  3. Check last year: how many returns were late, and did you ever get a notice?
  4. Price your own time. If two hours of selling earns more than Rs 499, pay.
  5. Whatever you pick, get the scope in writing: which returns, how many GSTINs, and whether notice replies are included.

A middle path works for many sellers: prepare GSTR-1 on a free tool so you see your own numbers, and pay a person only for GSTR-3B. If you are comparing products, use the scorecard in seven things to check in GST software.

How AprilTax can help

You can prepare your GSTR-1 on AprilTax's free tool from your Amazon, Flipkart or Meesho reports and upload the JSON file on the GST portal yourself. If you would rather hand it over, a Tax Expert files GSTR-1 and GSTR-3B for Rs 499 a month, or Rs 1,399 a quarter for quarterly filers, and GSTR-9 for Rs 1,499. See Tax Expert services.

Frequently asked questions

How much does GST return filing cost for an online seller?
Filing on the GST portal itself is free. If you hire help, one published range for a CA is Rs 500 to Rs 2,500 a month per GSTIN, depending on invoice volume. AprilTax's Tax Experts file GSTR-1 and GSTR-3B for Rs 499 a month, or Rs 1,399 a quarter for quarterly filers.
Can I file GST returns for free?
Yes. The government charges no fee to file GSTR-1 or GSTR-3B on gst.gov.in. You can enter data on the portal, use GSTN's offline tool, or use a free tool that prepares the GSTR-1 file from marketplace reports. You still have to work out and file GSTR-3B.
What is the late fee for GSTR-1 and GSTR-3B?
Rs 50 a day for each return, or Rs 20 a day for a nil return. For taxpayers with turnover up to Rs 1.5 crore in the previous year, the fee is capped at Rs 2,000 per return, and at Rs 500 for a nil return. Interest at 18% a year applies separately on tax paid late.
What does GST filing cost for a full year?
For a monthly filer with one GSTIN: Rs 0 if you do it yourself, Rs 5,988 with AprilTax at Rs 499 a month, and Rs 6,000 to Rs 30,000 at the published CA range of Rs 500 to Rs 2,500 a month. A quarterly filer pays AprilTax Rs 1,399 a quarter, which is Rs 5,596 a year.
Is a CA necessary for GST filing if I sell on Amazon, Flipkart or Meesho?
No law requires one. A seller with one GSTIN and simple purchases can prepare GSTR-1 with a tool and file both returns personally. A professional is worth paying for when input tax credit is large, you have several GSTINs, a notice has come, or you keep filing late.
Is paid GST software cheaper than a CA?
Not always. Software has a subscription and often add-ons for extra GSTINs, users or returns, and you still review and file yourself. Ask for the twelve-month total in writing and compare it with a fixed filing fee and with the value of your own time.
Do online sellers need to file GSTR-9, and what does it cost?
The annual return in GSTR-9 is exempt for taxpayers with aggregate turnover up to Rs 2 crore, so many small sellers need not file it. Those who must, or who choose to, can do it themselves on the portal at no fee. AprilTax charges Rs 1,499 for GSTR-9.

File your GSTR-1 free

AprilTax turns your Amazon, Flipkart and Meesho reports into a GSTR-1 file ready for the GST portal, with the checks done for you.

Open the free tool
D
CA Daxit

A Chartered Accountant on the AprilTax team who works with online sellers and small businesses every filing season.

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