GST for E-commerce Sellers: Amazon, Flipkart, Meesho and Your Own Site

If you sell goods on Amazon, Flipkart, Meesho or similar marketplaces, you need GST registration. The exception: since 1 October 2023, a small seller can sell within their own state only, with turnover below the state’s registration threshold, using a PAN-based enrolment number instead. Registered or not, the marketplace collects TCS of 0.5% on your net sales and deposits it with the government. Registered sellers claim it back and file GSTR-1 and GSTR-3B like any other business.

GST for online sellers is mostly normal GST plus three extra pieces: the marketplace’s role as an e-commerce operator (ECO), tax collected at source (TCS), and a few special rules for small sellers.

Do I need GST registration to sell online?

It depends on what you sell, where you ship, and whether you use a marketplace.

Your situation	GST registration needed?
Goods via marketplace, intra-state only, turnover below your state’s threshold	No. Use a GST enrolment number (PAN-based)
Goods via marketplace, any inter-state sale	Yes, whatever your turnover
Goods via marketplace, turnover above threshold	Yes
Services via a platform (not covered by Section 9(5)), turnover up to ₹20 lakh (₹10 lakh in certain special category states)	No
Services where the platform pays GST under Section 9(5) (e.g. restaurant food via delivery apps)	No registration needed for those supplies alone
Own website only (Shopify, WooCommerce etc.), no marketplace	Normal thresholds apply. See our GST registration threshold guide

Watch out: If you sell on your own website and list on a marketplace, the marketplace rules (TCS, and registration for inter-state sales) apply to your marketplace sales. Whether a particular platform counts as an e-commerce operator can be a grey area, so check with a professional if you’re unsure.

The enrolment route for small sellers (no GSTIN)

Under Notification 34/2023-Central Tax, you can supply goods through an ECO without registering if all of these are true:

• Your turnover (this year and last) is within the registration threshold for your state.
• You make no inter-state supplies of goods.
• You sell through ECOs in only one state or union territory.
• You have a PAN, and you declare your PAN, business address and state on the GST portal to get an enrolment number before your first sale.

You can hold only one enrolment number per state. If you later take regular registration, the enrolment number stops being valid from the date of registration.

Tip: The enrolment route saves paperwork, but you can’t claim input tax credit (ITC), meaning the GST you pay on purchases, packaging or marketplace fees. If your margins depend on ITC or you want all-India reach, regular registration is usually better.

Composition sellers

Since 1 October 2023, sellers under the composition scheme may also sell goods through ECOs, but only within their state. The operator collects TCS on these sales and reports them in its GSTR-8.

What is TCS and how does it affect my payouts?

Tax collected at source (TCS) under Section 52 is an amount the marketplace holds back from your payout and deposits with the government against your GSTIN or enrolment.

Period	TCS rate (on net taxable supplies)
Up to 9 July 2024	1% (0.5% CGST + 0.5% SGST, or 1% IGST)
From 10 July 2024	0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST)

“Net” means your taxable sales minus returns in that month.

Example: In one month you sell goods worth ₹4,00,000 (taxable value, excluding GST) to buyers in your own state on a marketplace, and customers return ₹40,000 worth. Net taxable supplies = ₹3,60,000. TCS at 0.5% = ₹1,800 (₹900 CGST + ₹900 SGST). That ₹1,800 is deducted from your payout but credited to you.

How to claim TCS credit

1. The operator files GSTR-8 by the 10th of the following month.
2. On the GST portal, open Services > Returns > TDS and TCS Credit Received, check the amounts and accept them (or reject wrong entries).
3. File the form. Accepted TCS goes to your electronic cash ledger, and you can use it to pay your GST.

When does the platform pay the GST instead of you? (Section 9(5))

For certain services, the law makes the ECO itself liable to pay GST as if it were the supplier. These include passenger transport (cab apps), accommodation, housekeeping, restaurant food via delivery apps and, from 22 September 2025, local delivery services supplied through an ECO by persons not required to register. If your only supplies fall here, you don’t charge GST on them. The platform does.

Which returns do registered e-commerce sellers file?

The same returns as any regular taxpayer. Read GSTR-1 vs GSTR-3B for the basics:

• GSTR-1: report marketplace sales, including the ECO’s GSTIN where required, so they match the operator’s GSTR-8.
• GSTR-3B: pay tax, using ITC and accepted TCS credit.
• GSTR-9: annual return, if your turnover requires it.

If you store stock in a marketplace fulfilment centre in another state, you will typically need GST registration in that state (or that warehouse added as a place of business, depending on the case). Get advice before sending stock across state lines.

Common mistakes e-commerce sellers make

1. Turning on all-India shipping without registration. Any inter-state sale needs regular GST registration.
2. Never accepting TCS credit, so the money sits unused on the portal.
3. Mismatch with GSTR-8. Reconcile marketplace settlement reports with your GSTR-1 every month.
4. Ignoring GST on marketplace fees. Commission and shipping fees carry GST, and you can claim that ITC only if you’re registered and the platform invoices your GSTIN.
5. Wrong HSN codes or rates on listings and invoices. See our guide on GST invoice rules.
6. Treating returns as new sales, or not issuing credit notes for them.

What to do next

• Decide your model: intra-state only (enrolment route) or all-India (full registration).
• If registering, keep your PAN, Aadhaar, address proof, bank details and business photographs ready.
• Set a monthly routine: download settlement and TCS reports, reconcile, accept TCS credit, file returns.

Want help getting a GSTIN to start selling on Amazon and other marketplaces? See our GST registration for Amazon sellers service.