Selling online through platforms like Amazon, Flipkart, Meesho, Instagram, or your own website? Then GST compliance is not optional — it’s mandatory.
This complete, updated guide (as of July 2025) covers everything: registration, filing, returns, penalties, TCS, invoicing rules, and who needs GST regardless of turnover.
Table of Contents
Mandatory GST Registration for Online Sellers (No Threshold)
Section 24(ix) of the CGST Act, 2017
“Every person making taxable supply through an e-commerce operator must obtain GST registration, regardless of turnover.”
What This Means Practically:
Scenario | GST Registration Required? |
Selling on Amazon, Flipkart, Meesho | Yes — even ₹1 turnover |
Selling via Instagram/WhatsApp with inter-state delivery | Yes |
Own website, only within one state, turnover below ₹40L | Optional — until threshold is crossed |
If you’re using an e-commerce operator (like Amazon), you must register for GST as a Regular taxpayer, not under the Composition Scheme.
Composition Scheme: Not Allowed for E-Commerce
Under Section 10(2)(d) of the CGST Act:
Sellers using e-commerce platforms cannot opt for the Composition Scheme, even if their turnover is low.
Also, if you sell to customers in other states, composition is not allowed.
So if you’re dreaming of the simple 1% tax scheme — sorry, it’s off-limits if you’re selling on platforms like Meesho or Flipkart.
GST Registration Requirements: What You Need
To get GST-registered, you’ll need:
- PAN Card
- Aadhaar Card
- Address proof (electricity bill/rent agreement)
- Bank account proof (cancelled cheque or statement)
- Passport-size photograph
- Email and phone number (for OTP verification)
Apply via https://www.gst.gov.in/. Turnaround time is 3–5 days.
Tax Collected at Source (TCS) Under Section 52
If you sell through Amazon or Flipkart, they will deduct 1% TCS from your sales before paying you.
- 0.5% CGST + 0.5% SGST (if intra-state)
- 1% IGST (if inter-state)
TCS is:
- Deposited by the platform into your GST ledger
- Claimable in your GSTR-3B return
Returns to Be Filed (Regular GST Sellers)
Return | Frequency | Description |
GSTR-1 | Monthly / Quarterly (QRMP) | Outward sales invoices |
GSTR-3B | Monthly | Summary of tax payable & ITC claimed |
GSTR-9 | Annually (if turnover > ₹2 Cr) | Annual GST return |
GSTR-9C | Annually (if turnover > ₹5 Cr) | Audit by CA |
GSTR-2B / 2A | Monthly | Auto ITC from supplier filings |
GSTR-8 | Monthly (filed by ECO) | TCS deducted from your sales |
GST Compliance Checklist for Online Sellers
- Register under Regular GST (not Composition)
- File GSTR-1 and 3B monthly
- Claim TCS credit from Amazon/Flipkart via GSTR-3B
- Maintain GST invoices, purchase bills, stock register
- Match ITC with GSTR-2B
- Reconcile monthly with ECO platform reports
- File GSTR-9 if turnover > ₹2 Cr
- E-invoicing if turnover > ₹5 Cr
Penalties for Non-Compliance
Violation | Penalty |
Not registering for GST | ₹10,000 or 100% of tax due |
Wrongly using Composition Scheme | Disqualification + Penalty |
Late return filing | ₹50 per day (max ₹5,000) |
Not paying GST collected | 18% interest + penalty |
GST compliance is serious business — especially when platforms like Amazon are required to report and deduct TCS.
Final Word: Stay GST-Compliant, Sell Legally
Whether you’re running a Shopify store, selling via Instagram DMs, or listing products on Meesho, GST is your legal gateway to scale and protect your business.
By registering under Regular GST and keeping your returns timely, you’ll:
- Build trust with suppliers & customers
- Avoid penalties and system notices
- Claim input tax credit (ITC) on business expenses
- Expand legally across India and globally
Don’t wait till your Flipkart dashboard freezes or your GSTR-3B deadline shows red — set your GST house in order now, and sell with peace of mind.
Thanks for the reading
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Heya i’m for the first time here. I found this board and I find It
really useful & it helped me out a lot. I hope to give
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Heya i’m for the first time here. I found this board and I find It
really useful & it helped me out a lot. I hope to give
something back and aid others like you helped me.