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Selling on Flipkart: New Sellers must know about these facts

Are you planning to sell on Flipkart? If yes, then you might get a deep insight on how you should proceed with selling on Flipkart.

Flipkart definitely is one of the topmost online selling platforms available to Indian sellers. You should have a working plan on how you will proceed after registering on Flipkart.

Key points to be considered before selling on Flipkart

  • You should be legally able to sell the article(s) that are proposed to be listed on the panel.
  • You must have obtained all the necessary licenses and permits required for such sale before listing the products on Flipkart
  • Proposed Listed product(s) should be infringed on intellectual property rights.
  • Select the appropriate category and the listing will include only appropriate text description, graphics, pictures, and/or videos about your product.
  • Do not list any of your single product/ article in multiple quantities across various categories on Flipkart.
  • Flipkart reserves the right to restrict any of your product selling based upon country of origin.
  • It is the responsibility of the seller to charge appropriate Goods and Services Taxes (GST) on the supplies initiated by the seller.
  • HSN code details are required for every listing, in case the HSN code is not provided by the seller, the listing will get delisted.
  • GSTIN is mandatory.
  • In case the seller has provided the ISD registration number, Flipkart will issue an invoice on the respective ISD GSTIN and it is the responsibility of the seller to comply with the statutory requirement.
  • Flipkart reserved the discretionary power in regard to making the COD payment option not available for any selected product(s) or categories
  • The generation of complete and accurate invoices on Flipkart is the sole and primary responsibility of the seller.

What are the different Categories of Sellers?

  • Gold
  • Silver
  • Bronze

What is the basis for categorization of sellers?

Sellers are categorized based on the following criteria:

  • Sales achieved by the sellers
  • Performance of their order fulfillment by considering the number of breaches and the cancellation orders.
  • Overall shipment performance – Zonal wise/ Local Zonal
  •  Feedback performance

What are the benefits available to the sellers as per their Categorization?

Sellers will get benefits as per their categorization such as:

  • Concessional shipping charges
  • Account management support
  • Faster payments

Why you should be more attentive towards tier/ category?

There are certain benefits that you might not get while maintaining your bronze tier. Bronze tier is the default category of the new seller. As and when you improve, your tier moves along with your progress.

Benefits available to the sellersTier 1 – BronzeTier 2 – SilverTier 3 – Gold
Concessional shipping fee Not applicable10%20%
Payment cycle15 days10 days7 days
VisibilityLowMediumHigh
Account ManagerNot applicableYesYes
Seller supportRegularDedicatedDedicated
Exclusive Flipkart eventsNoNoYes

Are there any charges for registration on Flipkart?

No, it is free. There are no registration charges for signing up on Flipkart.

How to register yourself as a Seller on Flipkart?

Flipkart is among the best-selling platform available in India to start selling online. The registration process on Flipkart is very easy and simple. Just follow the below-given steps to get yourself registered as a seller on Flipkart.

Step 1:

Create your Seller Account

Visit seller.Flipkart.com and opt for sign up, for first time registration on Flipkart you need a Mobile number and an Email id.

You will get an OTP (One-time password) to authenticate your mobile number.

Enter you Full Name and set a Password for your account.

Before Signing up, you are required to agree to the Terms and conditions for signing up being an online seller on Flipkart.

Step 2:

Arrange the following documents that are required for registration:

  • GSTIN
  • Sample Signatures
  • Cancelled cheque bearing account number, IFSC code, and the name of proprietor/ company.

Step 3:

Bank account verification

Flipkart will confirm your bank account by sending a token amount to your bank account.

Step 4:

Final step is to list at least one product to activate your account.

Can I close my existing Flipkart Seller Account?

Yes, if you are an existing seller on Flipkart and planning to close your existing seller account you can do so by requesting the seller support for the closure of your seller account.

During the signing up, every seller has agreed on Terms and conditions. As per Flipkart policy, if any seller has requested for the closure of their seller account, in that case, Flipkart will put on hold that particular account for a period of 90 days to ensure that the seller will get ample time to smoothly close down the account and manage to arrange any reports such as payment reports, taxation reports to meet their statutory requirements.

Meanwhile, all the dues if any should be settled down for the successful closure of the seller account.

After the stipulated time period i.e. 90 days, the seller will ensure that they have downloaded all the requisite reports to comply with their accounts and upon receiving confirmation from the seller, Flipkart will again receive the request for deactivation of their seller account.

Flipkart will retain certain information such as registered mobile number, Email Id, GSTIN, and other transaction-related information for audit purposes and to prevent fraudulent activity by the sellers in the future.

If a seller wants to restart selling on Flipkart, will they have to apply for fresh registration?

No, if any seller decides to start selling again on Flipkart, then they will not be allowed to create a new seller account. But they can apply for restoration of their previous seller account.

Compliances to be done by sellers

Seller should ensure full compliance related to and not just limited to:

Information Technology Act, 2000

Exchange control laws or regulations in force

International Laws

Foreign exchange laws

Statutes

Ordinances and regulations

Integrated Goods and Services Tax Act (IGST Act)

Central Goods and Service Tax Act (CGST Act)

Food Safety and Standards Authority of India (FSSAI)

Relevant State Goods and Services Tax Act (SGST Act)

Union Territories Goods and Services Tax Act

Custom Duty

Any other Local Taxes as applicable

OFAC Regulations and other applicable sanctions regulations

TCS deducted by Flipkart is not matched with the details available to me. What should I do?

Flipkart is required to collect tax collection at source as per TCS provisions under the IGST, CGST, UTGST/SGST at applicable rates in force on the net value of taxable supplies made through the Flipkart portal.

In case of any discrepancy found on account of TCS, the seller is required to provide all the relevant facts and information to Flipkart to correspond with the relevant authorities.

Can I use “Flipkart.com” or Logo on my Invoice or on my packing material?

Yes, Flipkart grants sellers a limited, non-transferable, non-exclusive, non-assignable, non-sublicensable and personal license to use “Flipkart.com” and/or Logo on the packing material used by the sellers for shipping the products sold on the Flipkart and on Seller’s Invoice for the transactions that are concluded on the Flipkart platform.

Can Flipkart conduct an inspection or audit of the seller’s records and/or premises?

As per the Terms and conditions agreed upon by every seller, Flipkart shall have the right to inspect and audit the seller’s records and/or premises i.e. place of business through itself or through any approved third-party testing agencies.

Can I complain against any infringement in case of violation of my Trademark?

Yes, in case of any violation against your registered Trademark, the seller can reach Flipkart at trademark@Flipkart.com or they can reach them ss@Flipkart.com

Can I complain against any infringement in case of violation of my Copyright?

Yes, in case of any violation against your registered Copyright, the seller can reach Flipkart at copyright@Flipkart.com or they can reach them by raising incidents from their seller dashboard.

In case of grievance, you can reach them at grievance.officer@Flipkart.com

Payments and Accounting

One of the important aspects which prospective online sellers are eager to know about is how sellers get payments, how these payments are calculated, and what accounting treatment is to be done on the following payments.

Mode of PaymentNEFT
Separate payment details are available for: Prepaid accountPostpaid accountThe prepaid account contains the payment summary that is initiated either by debit/ credit card, net banking, e-wallet, or any other e mode.

The postpaid account here refers to the COD account i.e. cash on delivery model.  

The payment summary will include details like seller protection fund payments, advertising services, and Flipkart fulfillment payments.
Method of paymentSeparate payments from both accounts
Condition for paymentThe seller will get paid only if there is a positive balance in these two accounts.
What is settlement amount?Total order item value (-) Flipkart’s marketplace fee.
What constitute marketplace fees?Flipkart’s selling commission, collection fee, fixed fee, shipping fee, and taxes.

Know more about:

Know the procedure to file a TDS claim on Flipkart – TDS Reimbursement

Flipkart TDS Calculator

File your monthly GST return from Flipkart Sales Report.

Sellers should use Analytics Reports to avoid permanent penalty from selling on Flipkart

How to calculate TDS on Flipkart Commission

E-Commerce Seller can claim TCS Credit in GST

CA Devesh Thakur

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