Selling on Myntra, Flipkart, Amazon, Ajio, Meesho or another marketplace changes the GST rules for you. Most marketplaces ask for a GSTIN before they activate a seller account, and the turnover limits that apply to ordinary shops work differently for online sellers. Here is how it works for a seller based in Gurugram.
Do online sellers need GST registration?
The general rule in section 24 of the CGST Act is that a person supplying goods through an e-commerce operator that collects tax at source (TCS) must register, whatever the turnover. That covers selling on all the large marketplaces.
There is one exemption for small sellers, effective from 1 October 2023 under Notification No. 34/2023-Central Tax, which Haryana has adopted for state tax as well.
| Your situation | GST registration needed? |
|---|---|
| Selling goods only within Haryana, through one marketplace state, turnover below the registration limit | Can use the exemption (enrolment number instead of GSTIN), if all conditions below are met |
| Selling to buyers in other states (inter-state supplies) | Yes, registration is compulsory |
| Turnover above the registration limit | Yes |
| Also selling services, or offline sales that take you over the limit | Check aggregate turnover; registration may be compulsory |
Conditions for the small-seller exemption
To sell through a marketplace without GST registration, every one of these must apply:
- No inter-state supply of goods.
- Supplies through e-commerce in only one state.
- A PAN issued under the Income Tax Act.
- PAN, place of business and state declared on the GST portal before you start selling, after which an enrolment number is issued.
- Aggregate turnover in the current and previous financial year within the registration limit.
In practice, most marketplace sellers in Gurugram want to sell all over India, which is an inter-state supply, so they need regular GST registration from day one.
TCS: what the marketplace deducts
Under section 52, marketplaces collect TCS on the net value of taxable supplies you make through them. Since 10 July 2024 the rate is 0.5% for inter-state supplies (IGST), and 0.25% CGST plus 0.25% SGST for intra-state supplies. The TCS appears in your electronic cash ledger once the marketplace files its return, and you can use it to pay your GST.
Documents for a seller’s GST registration
The documents are the same as for any business of your type (see our address guide). Two points matter more for online sellers:
- Place of business: if you keep stock at home, a rented godown or a warehouse, each place must be declared. Marketplace fulfilment centres in other states usually need separate registration in that state, or registration as an additional place of business, depending on the arrangement. Ask before you send stock.
- Business description and HSN codes: list the products you will actually sell, so the GSTIN matches what the marketplace expects in its seller onboarding.
After registration: what changes
- Monthly or quarterly GSTR-1 and GSTR-3B, with marketplace sales reported state-wise.
- Reconciling the marketplace’s sales and returns report with the TCS shown in your ledger.
- Credit notes for returns, so you do not pay tax on sales that came back.
We handle this for sellers on Myntra, Flipkart, Amazon, Ajio, Meesho and Limeroad. See our GST for e-commerce sellers service, or start with GST registration in Gurgaon.