GST Registration for Online Sellers in India

Short answer: You may need GST registration if your yearly turnover crosses the limit for goods, if you sell in other states, or if the platform you sell on asks for it. Some small sellers of goods can sell on certain marketplaces under an Enrolment ID route, but only if they meet conditions. The rules change, so confirm with an accountant or the GST portal before you decide. This guide explains the decision in plain language and is not tax advice.

GST is one of the first worries for a new online seller. Do you need a GST number? Can you start without it? What happens if you sell to another state? This guide explains how to think about it so you can ask your accountant the right questions. It covers general information, not legal or tax advice, and rules and notifications change.

What is GST registration and why does it matter?

GST is a tax on the supply of goods and services. A registered seller collects GST from customers, pays it to the government and can claim credit for GST paid on purchases. Registration gives you a GSTIN, the 15-character number printed on tax invoices. Marketplaces and business buyers often ask for it, and wholesale buyers may want a GST bill to claim input credit.

When registration is generally needed

Situation	Usually means
Your yearly turnover from goods crosses the threshold (commonly Rs 40 lakh, Rs 20 lakh in some states)	Registration is required
You sell goods to customers in other states	Registration is generally required, with limited exceptions
You sell on a platform that requires a GSTIN	You need it for that platform
You want to give GST invoices to business buyers	You need to be registered

Thresholds and exemptions change and depend on your state and type of goods. Check the current rules.

Can I start without GST?

Some very small sellers of goods can start without a full registration if they stay below the limit and sell only within their own state. In this case certain marketplaces, including Meesho, accept an Enrolment ID instead of a GST number, subject to conditions. We explain it in detail in Sell on Meesho without GST. Remember that this route has limits, such as the one-state rule, and you cannot charge GST or claim input credit.

What you need to register

PAN of the business or individual
Aadhaar and mobile number linked to PAN
Address proof of the place of business
Bank account details
Photographs and identity documents as asked on the portal

Registration is done on the official GST portal and the process is free. Be careful of agents who charge large fees for a simple application. You can also ask an accountant to file for you.

What changes after you register

You must issue tax invoices with your GSTIN and the correct GST rate.
You must file periodic returns, even when you have no sales.
You can claim input credit on GST paid on purchases, if you meet the conditions.
You must keep records of purchases and sales.

How GST affects your wholesale buying

At WholesaleOye, prices are shown plus GST and GST bills are available. If you are registered, you may be able to claim credit for the GST on your purchases, subject to the rules. If you are not, the GST is part of your cost. Always include it in your costing, as in our profit example.

Common GST mistakes

Waiting until turnover is far above the limit to register.
Selling to other states without checking registration rules.
Not keeping purchase bills.
Forgetting to include GST in cost and price.
Paying an agent excessive fees.

A simple decision path

Estimate your yearly turnover from goods.
Decide where you will sell: your state only, or other states and marketplaces.
Check the platform’s current requirement.
Ask an accountant if you are near a limit or unsure.
Register early if you plan to sell widely.

Selling through marketplaces: the rule many guides skip

This is where sellers get confused. The general turnover limit (Rs 40 lakh for most goods sellers) does not always apply if you sell through an e-commerce operator such as Amazon, Flipkart or Meesho. Under Section 24 of the CGST Act, persons who supply goods through an e-commerce operator that collects tax at source have generally been required to register regardless of turnover. Several tax sites also explain that sellers must register so they can claim the tax collected at source from their sales.

There is one important exception. By Notification 34/2023-Central Tax, dated 31 July 2023 and in force from 1 October 2023, the government exempted certain suppliers of goods who sell through e-commerce operators from mandatory registration, subject to conditions. The central exemption is limited to suppliers who make no inter-state supplies. State-level notifications cover the intra-state position, and the enrolment facility on the GST portal gives such sellers an enrolment ID to use on the platform. Because conditions are detailed, read the notification or ask an accountant before relying on it.

Simplified registration for small e-commerce suppliers

The 56th GST Council meeting on 3 September 2025 gave in-principle approval to a simplified registration mechanism for small suppliers who sell through e-commerce operators, and news reports said it was to begin on 1 November 2025. Reports describe it as letting such sellers name the platform’s warehouse in a state as their place of business there, with eligibility tied to a monthly input tax credit limit of Rs 2.5 lakh. We could not confirm the final operating rules from official text for this guide, so check the GST portal and CBIC notifications for what applies to you today.

Tax collected at source (TCS)

If you sell through a marketplace and are registered, the platform collects TCS from the value of your taxable sales and pays it to the government. ClearTax states the rate as 0.5 percent under Section 52 of the CGST Act. You can claim this amount in your GST return, which is one reason registered sellers file GST returns even when they have little tax to pay. Older guides may quote 1 percent. Check the current rate.

How to register, step by step

Go to the official GST portal and choose New Registration.
Enter your details in the application, which is filed electronically and verified with an EVC or Aadhaar authentication.
Upload documents: PAN, identity proof, photograph, proof of business address and bank details.
Submit the application. You receive an application reference number.
If the officer asks for clarification, respond within the time stated.
On approval you receive the registration certificate with your GSTIN. In normal cases this is expected within a few working days.

Registration on the portal is free. Avoid agents who charge large fees for a simple application. If you use an accountant, agree the fee for registration and the monthly returns in advance.

After registration: invoices and returns

Task	What it means for you
Tax invoice	Issue an invoice with your GSTIN, HSN code, GST rate and tax amount for each sale where required.
Outward supplies return	Report your sales on the schedule set for your return type.
Summary return and tax payment	Pay the tax after setting off input tax credit.
TCS credit	Check the TCS deducted by marketplaces and claim it.
Records	Keep purchase bills and sales records for the period the law requires.

Filing frequency and scheme choice depend on turnover and the options you select. Ask your accountant which schedule suits you.

A worked example: what GST does to your margin

Assumed numbers for illustration. You buy a product at Rs 100 plus 18 percent GST, so you pay Rs 118. You sell it at Rs 299 on a marketplace.

Line	If you are registered and can claim credit	If you are not registered
Purchase cost including GST	118	118
GST paid on purchase that you can claim back	18	0
Your effective product cost	100	118
GST you owe on the sale (assuming the product is 18% and the Rs 299 includes tax)	About 46 before setting off the Rs 18 credit, so about 28 payable	Not charged if you are in the unregistered route

The calculation differs by product rate and whether the selling price includes GST. The point is that registration brings tax on your sales but also credit on your purchases. This is why you should ask an accountant to model your product before you decide.

Composition scheme: usually not for marketplace sellers

The composition scheme lets small traders pay a low flat tax, but persons who must collect or pay under the e-commerce provisions generally cannot opt for it, according to tax guides. If a marketplace seller asks you to take it, check the current conditions first.

Questions to ask your accountant

Do I qualify for the enrolment ID route on Notification 34/2023?
Do I need registration because I sell to other states?
Which return schedule suits my turnover?
Can I claim credit on my wholesale purchases and on shipping and platform fees?
What happens to my registration if I stop selling on one platform?

Frequently asked questions

Do I need GST to sell online in India?

It depends on your turnover, where you sell and which platform you use. Many sellers need it. Some small sellers may qualify for lighter rules, so check current notifications.

Can I sell on Amazon or Flipkart without GST?

Generally these platforms ask for a GSTIN. Check their current seller requirements.

What is the GST turnover limit for goods?

Commonly Rs 40 lakh for goods, and Rs 20 lakh in some states, with different limits in some special category states. Confirm for your state.

Can I claim GST on products I buy for resale?

If you are registered and meet the conditions, you may be able to claim input credit on the GST in your purchase bills. Ask your accountant.

Does WholesaleOye give GST bills?

Yes, GST bills are available and prices are shown plus GST.

Is GST mandatory for Amazon and Flipkart sellers?

Generally yes for sellers of goods, because marketplaces collect tax at source and ask for a GSTIN. Check the current seller requirements and the small seller exemption conditions.

What is an enrolment ID?

It is a registration-exempt identifier that some small sellers of goods can generate on the GST portal to sell through e-commerce operators, under conditions such as selling within one state.

What is the TCS rate for e-commerce sellers?

ClearTax lists TCS at 0.5 percent under Section 52 of the CGST Act. Older sources quote 1 percent, so check the latest notification.

Can I register for GST without a shop?

Yes, you can register with your home address as the principal place of business if you provide valid proof such as a utility bill and a consent letter from the owner where applicable.

Does GST apply on dropshipping?

Yes, the same turnover and e-commerce rules apply. See is dropshipping profitable in India.

Sources and further reading

Keep reading

Last updated: 12 November 2026. General information, not legal or tax advice.

Written by WholesaleOye Team

WholesaleOye is an online wholesale market for sellers, shop owners and new resellers in India. Our mission is to make wholesale simple and low risk: buy in small quantity, start with a single sample piece, and grow as your customers re-order. Our vision is to be the place small businesses trust to source direct from importers and manufacturers at the best price, with GST bills, doorstep delivery to 25000+ pincodes and an easy 5-day return policy.

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