GST is one of the first questions new online sellers ask. This is a simple overview; always confirm your situation with a chartered accountant, because rules and rates change.
Do online sellers need GST registration?
Most sellers on e-commerce marketplaces need GST registration, even with low turnover. There are limited exemptions, for example for some small sellers supplying goods only within their own state, subject to conditions. Check with your CA before you start.
What you need for registration
- PAN, Aadhaar and photograph of the proprietor or partners.
- Proof of business address.
- Bank account details.
Once registered, check your GSTIN format with our GSTIN checker.
Charging GST
- The rate depends on your product’s HSN code. Find common headings with our HSN code finder, and confirm the rate with your CA.
- Sales within your state: CGST and SGST. Sales to other states: IGST.
- Marketplace prices usually include GST. Split prices with our GST calculator.
TCS and TDS
Marketplaces collect a small tax collected at source (TCS) under GST from your payouts, and may deduct TDS under income tax. These amounts are credited to you and can be claimed. Check current rates with your CA.
Input tax credit
GST charged on marketplace fees and your purchases can usually be claimed as input tax credit, reducing the GST you pay.
Returns to file
Registered sellers file regular GST returns, reconciling marketplace sales, TCS and credits. Many sellers use an accountant for this.
Want the full picture? This article is part of Marketplace selling: the complete guide, our in-depth guide with everything in one place.
