Snapdeal allowing sellers to change tax rates themselves for listed products?

Taxes in online retail are a bit complex with deductions from the state, the central government and the marketplace you sell on. Entry tax was introduced to ecommerce last year and GST will be implemented this year. This all just adds to the confusion. To simplify the deal with taxation on its platform, Snapdeal has attempted to answer a few questions online sellers have about tax class and tax rates. The etailer also explains in an email to online sellers how tax rates on listed products can be changed.

Here’s what the online marketplace discussed in its email to online sellers –

Tax class

According to Snapdeal, the term tax class refers to a segment of products specified under the VAT schedule of different states. For example, cookware sets sold in Delhi will belong to tax classes like – Utensils_aluminium_and_enamelled, Utensils_stainless_steel, etc.

Tax classes and rates

Tax classes are used to decide the tax rate for products. There may be multiple tax rates for every tax class depending on the state a seller conducts his business from. Tax rates also differ based on product selling price and MRP.

Tax rates of different states

To know the tax rates of different states simply check the catalog tab on the seller panel. From there select the 3 dots at the top right of the page. Click on tax information panel when it shows up in the drop-down menu. Pick the state you want to know the tax rate of, the applicable product type and tax class for the rates for different price slabs.

How to change tax rates of listed products?

Select the catalog tab for the options to change the tax rate for your single product or multiple products.

Single SUPC

1 – Click on the catalog tab on the seller panel. Then select the SUPC for which you want to update the tax class.

2 – Check the current tax rate and tax class on the update card.

3 – Go to the edit option and pick the correct tax class for your product.

4 – Select from the available product tax classes and update your tax rate.

Bulk SUPCs

1 – Click on the catalog tab on the seller panel, then select the three dots on the top right of the page.

2 – Pick update tax class from the menu.

3 – Download the tax class mapping sheet

4 – In the downloaded sheet select the correct tax class for your SUPCs and upload this sheet

Correcting tax rates against product tax class

For this you must raise a dispute through the tax information panel under the catalog tab. When raising the dispute, the tax class name, current tax rate in the system and proposed tax rate must be mentioned. To support your claim you are also required to submit a relevant government circular/ notification to support your claim.

Can a new tax class be created if a relevant one is not found?

As per Snapdeal’s email, you can create a new tax class is the relevant one cannot be found for your product. Again for this, a dispute must be raised through the information panel under the catalog tab. A picture of your product along with the product type under which you are selling must be mentioned. Also, a relevant notification from the State or Central government must be provided.