Introduction
If you sell products on Amazon, Flipkart, Meesho, or any other online platform, understanding GST for e-commerce sellers is essential. The Government of India has made it mandatory for all online sellers to follow GST rules, even if they sell through marketplace platy
1. GST Registration for Online Sellers
Every person selling goods or services online must register under GST, regardless of turnover.
Compulsory Registration: Even if your turnover is below ₹40 lakh (for goods) or ₹20 lakh (for services), GST registration is mandatory if you sell through an e-commerce operator.
Documents Required:
PAN card
Aadhaar card
Bank account details
Business address proof
Cancelled cheque or bank statement
Once registered, you’ll get a GSTIN (GST Identification Number) which must be mentioned on all invoices and product listings.
2. Invoicing and GST Collection
Each sale made through an e-commerce portal must be backed by a tax invoice that includes:
Seller’s GSTIN and buyer’s details (if registered)
Product description, HSN/SAC code
Taxable value and GST rate
Total invoice value including GST
The marketplace (like Amazon or Flipkart) collects tax at source called TCS (Tax Collected at Source) under Section 52 of CGST Act.
—
3. TCS in E-Commerce
E-commerce platforms deduct 1% TCS (0.5% CGST + 0.5% SGST or 1% IGST) on the net value of sales.
The deducted TCS amount reflects in your GST portal (Form GSTR-2B), and you can claim it as credit while filing your returns.
—
4. GST Returns for E-Commerce Sellers
You must file regular GST returns, usually:
GSTR-1: Monthly/quarterly statement of outward sales
GSTR-3B: Monthly summary of sales, ITC and tax liability
GSTR-9: Annual return (if applicable)
👉 Timely filing avoids penalties and ensures your listings on marketplaces remain active.
—
5. Common Mistakes to Avoid
Not matching invoices with portal reports (Amazon/Flipkart settlement data)
Missing TCS reconciliation
Using wrong HSN codes or GST rates
Failing to show cancelled or returned orders in returns
Regular reconciliation with marketplace reports helps prevent mismatches during audit.
—
6. Key Benefits of GST Compliance
Builds trust with online platforms and buyers
Enables nationwide sales without state-wise registration
Easy claim of ITC on purchases and services
Avoids legal or penalty issues from GST department
—
Conclusion
E-commerce sellers must stay proactive in managing GST compliance. Registering on time, filing returns accurately, and reconciling TCS will save you from future disputes and help your online business grow confidently under the GST framework.
Major Update in GSTR-3B (Table 3.2) – Effective from April 2025 Return