GST for E-Commerce Sellers in India — Registration, TCS & Returns

For goods sold through a marketplace there is no threshold — registration is compulsory from the first sale under Section 24 of the CGST Act. Only suppliers of services through an e-commerce operator can use the normal ₹20 lakh limit (₹10 lakh in special-category states). Selling goods without registration can get your seller account suspended.

No. Section 10 of the CGST Act specifically bars any person who supplies goods or services through an e-commerce operator from opting for the composition scheme. E-commerce sellers must register under the regular scheme, charge GST on sales, and file monthly (or QRMP quarterly) returns.

If you sell goods on your own website you are still making taxable supplies, so registration is required once you cross ₹40 lakh (₹20 lakh in some states) for goods, or ₹20 lakh for services. Selling through a third-party marketplace is what removes the threshold for goods — your own website follows the normal limits, but many sellers register early to claim ITC.

TCS (Tax Collected at Source) under Section 52 requires e-commerce operators like Amazon and Flipkart to collect 0.5% GST — 0.25% CGST + 0.25% SGST for intra-state sales, or 0.5% IGST for inter-state (the rate was 1% until 9 July 2024) — on the net value of taxable supplies made through them. It is deducted from your payout, deposited by the platform, and credited to your GST ledger. It is not an extra tax — it is advance GST collected on your behalf.

0.5% of the net taxable value since 10 July 2024 (it was 1% before). For sales within your state it is split 0.25% CGST + 0.25% SGST; for inter-state sales it is 0.5% IGST. Both Amazon and Flipkart apply the same rate, deduct it from your settlement, and report it in Form GSTR-8. The credit then appears in your electronic cash ledger.

The TCS the platform reports in GSTR-8 is auto-populated to your GST portal, where you accept it and it is credited to your electronic cash ledger. You can then use that balance to pay your GST liability in GSTR-3B. Reconcile the platform figure against your own sales every month so no credit is missed.

No. TCS is computed only on the net taxable value of the supply — the product value after returns and cancellations — and not on the GST component of the invoice. TCS is also not deducted on B2B supplies where the buyer's GSTIN is captured and reported as such.

A regular e-commerce seller files GSTR-1 (outward supplies) by the 11th, GSTR-3B (summary and payment) by the 20th, and the annual GSTR-9. The platform separately files GSTR-8 for the TCS it collected — that is the operator's return, not yours, but its data must reconcile with your sales. Sellers up to ₹5 crore turnover can opt for the QRMP scheme.

QRMP (Quarterly Return, Monthly Payment) lets registered sellers with turnover up to ₹5 crore file GSTR-1 and GSTR-3B quarterly while paying tax monthly by challan. E-commerce goods sellers can opt in, which cuts filing frequency. It does not change TCS — the platform still deducts and reports it monthly in GSTR-8.

Online sales carry the same GST rate as offline sales, decided by the product HSN code. Under the GST 2.0 two-slab structure effective 22 September 2025, most goods fall into 5% or 18%. For example, apparel and footwear priced up to ₹2,500 are 5%, mobile phones and laptops are 18%, large appliances like TVs and ACs moved from 28% to 18%, and printed books remain nil-rated. Always confirm your HSN on the GST portal.

Yes for several categories. The GST 2.0 reform (effective 22 September 2025) removed the 12% and 28% slabs and moved most goods into 5% or 18%. Large electronics and appliances that were 28% are now 18%, the 5% apparel/footwear threshold rose from ₹1,000 to ₹2,500, and many mass-use goods dropped to 5%. Re-check every SKU's HSN before you rely on an old listing rate.

Yes. As a regular registered seller you can claim Input Tax Credit on goods bought for resale, packing materials, shipping, platform and advertising fees, and business software — provided the purchase invoice carries your GSTIN and appears in your GSTR-2B. You cannot claim ITC on personal purchases, blocked credits under Section 17(5), or buys from unregistered suppliers.

The seller — not the marketplace — is legally responsible for correct HSN classification and GST rate. Charging a lower rate than the law requires can lead to a demand notice with interest and penalty, while over-charging annoys customers and risks complaints. Verify each product against the current GST rate schedule, especially after the GST 2.0 reclassification.

It depends on the place of supply. If the buyer is in your state you charge CGST + SGST; if the buyer is in another state you charge IGST. Marketplaces ship pan-India, so most sellers raise a mix of both. The platform mirrors this in its TCS — 0.25%+0.25% for intra-state and 0.5% IGST for inter-state.