Is GST Registration mandatory for e-commerce sellers on Amazon and Flipkart?

GST registration is not compulsory for every online seller. Goods sold through a TCS-collecting marketplace normally require registration, but Notification 34/2023 provides a conditional exemption. Eligible sellers must stay within the applicable turnover limit in both the preceding and current financial years, make no interstate goods supplies, sell through operators in only one state or union territory, and obtain portal enrolment after PAN validation. Service suppliers have separate exemption rules; check the service category and other compulsory-registration provisions.

This post explains when GST Registration for e-commerce sellers on Amazon, Flipkart and similar marketplaces is compulsory, when it is not, and what tax collected at source (TCS) means for you. Rules are as of October 2026; marketplaces may also have their own seller policies, which can be stricter than the law.

Why does e-commerce change the GST rule?

Normally, you need GST Registration only when your aggregate turnover crosses ₹40 lakh (goods only) or ₹20 lakh (services, or goods and services) in most states — see Who must register for GST? But Section 24 lists categories of people who must register from the first sale, regardless of turnover. One of them is:

• persons who supply goods or services through an electronic commerce operator (ECO) that is required to collect tax at source under Section 52 — Section 24(ix).

An electronic commerce operator is the business that owns or runs the digital platform — the marketplace itself. Large marketplaces like Amazon and Flipkart collect TCS, so this rule applies to sellers on them. Separately, Section 24(i) requires Registration for anyone making inter-state supplies of goods. Most online sellers ship to buyers in other states, so this rule often applies too.

Is GST Registration mandatory for e-commerce sellers? The exceptions

Seller situation	GST Registration needed?
Sells goods through a marketplace to buyers in other states	Yes, from the first sale
Sells goods through a marketplace only within own state, turnover below the limit	No, if the seller obtains a GST enrolment number and meets the conditions (from 1 October 2023)
Sells services through a platform, turnover below ₹20 lakh (₹10 lakh in special category states)	Eligible service suppliers may be exempt under Notification 65/2017. Services covered by Section 9(5) follow separate rules; check the category rather than assuming registration is compulsory.
Sells only GST-exempt goods (for example, printed books)	No, a person dealing only in exempt supplies does not need to register
Sells through its own website with a payment gateway, not a marketplace	Normal turnover limits apply, but inter-state sales of goods still require Registration

The 2023 relaxation for small intra-state sellers — still in force?

Yes. As of October 2026, Notification No. 34/2023–Central Tax, effective 1 October 2023, remains the basis for this relaxation. A seller can supply goods through an e-commerce operator without GST Registration only if:

• their aggregate turnover does not exceed the applicable Registration limit in both the preceding and current financial years;
• they make no inter-state supply of goods at all;
• they sell through e-commerce operators in only one state or union territory;
• they have a PAN and declare it, with their business address and state, on the GST portal; and
• they have been granted an enrolment number on the portal before the first sale (only one per state).

The enrolment is done on the GST portal under User Services → Generate User Id for Unregistered Applicant, choosing the option to supply through e-commerce operators. The enrolment lapses once you take a regular GST Registration. In practice, the marketplace must also support selling with an enrolment number and restrict your listings to your state — check with the platform.

Can composition taxpayers sell on Amazon and Flipkart?

Since 1 October 2023, a composition taxpayer (a small business paying tax at a low fixed rate under the composition scheme, available up to ₹1.5 crore turnover for most goods businesses) can sell goods through e-commerce operators, but only within the state, because composition does not allow inter-state sales. Composition taxpayers still cannot supply services through an e-commerce operator that collects TCS. See The GST composition scheme.

Is there a simpler multi-state option coming?

At its 56th meeting in September 2025, the GST Council approved in principle a simplified Registration mechanism for small suppliers selling through e-commerce operators across several states. The detailed scheme was to be placed before the Council later. No notification bringing it into force could be confirmed as of October 2026, so check the GST portal and CBIC notifications before relying on it.

What is TCS, and how does it affect sellers?

Tax collected at source (TCS) under Section 52 is an amount the marketplace deducts from your payout and deposits with the government on your behalf. Since 10 July 2024, the rate is 0.5% of the net value of taxable supplies (0.25% CGST + 0.25% SGST within a state, or 0.5% IGST for inter-state sales), under Notification No. 15/2024–Central Tax.

• The marketplace reports the TCS in its return, Form GSTR-8.
• You accept the TCS figures on the portal, and the amount becomes available in your electronic cash ledger to pay your GST.
• TCS is not an extra tax. It is an advance credit — but only if your GSTIN is correct with the marketplace and your returns are filed.

Income tax has a separate deduction by e-commerce operators under Section 194-O, which is not part of GST.

Do you need GST Registration in every state where the marketplace stores your stock?

Often yes. Under fulfilment programmes, the marketplace may store your goods in its warehouses in other states. Under GST, a place where you keep stock is a place of business, so each state with your stock usually needs its own GST Registration, or that warehouse must be added correctly. Using a marketplace warehouse address for Registration raises the same verification questions as any other address — see GST Registration without a commercial address.

What should a new online seller do first?

1. Decide whether you will ship outside your state. If yes, you need GST Registration.
2. If you will sell only within your state and are below the limit, check if your marketplace supports the enrolment-number route.
3. Check the GST rate for your products by HSN code on the CBIC rates page. From 22 September 2025, most items fall under 5% or 18%, with 40% for a small list of luxury and sin goods.
4. Prepare documents — see the GST Registration Documents and Eligibility: Complete Checklist.
5. Plan for monthly or quarterly returns; read GST returns after Registration.

If you are still choosing a business structure for an online brand, Business Structures in India: Proprietorship, Partnership, LLP, PVT LTD and OPC compares the options.

Key takeaways

• Selling goods through a TCS-collecting marketplace normally needs GST Registration from the first sale.
• Small sellers supplying goods only within one state can use a GST enrolment number instead, under Notification 34/2023 (from 1 October 2023).
• Eligible service providers may qualify for a threshold exemption; Section 9(5) services and other compulsory-registration categories need separate checking.
• Marketplaces collect 0.5% TCS, which sellers can use against their GST.
• Stock in other states' warehouses usually means a GST Registration in each of those states.