GST Registration for E-commerce Sellers
The rise of e-commerce has opened up vast opportunities for businesses to reach customers nationwide. However, selling goods through e-commerce operators like Amazon, Flipkart, or Meesho comes with specific GST compliance requirements.
Unlike traditional brick-and-mortar businesses that may have a turnover threshold for GST registration, e-commerce sellers often face mandatory registration requirements regardless of their turnover.
Is GST Mandatory for E-commerce Sellers?
Yes, in most cases. According to Section 24 of the CGST Act, 2017, persons who supply goods through an electronic commerce operator (ECO) who is required to collect tax at source (TCS) under Section 52 must obtain GST registration compulsorily, irrespective of their turnover.
Exception: Sellers of services (not goods) through an e-commerce platform are exempt from mandatory registration if their turnover is below ₹20 lakhs (₹10 lakhs in special category states).
Documents Required
- PAN Card: Permanent Account Number of the business or proprietor.
- Aadhaar Card: Of the proprietor/partners/directors.
- Business Address Proof: Electricity bill, rent agreement, or property tax receipt.
- Bank Account Details: Cancelled cheque or bank statement.
- Photograph: Passport-sized photo of the authorized signatory.
- Proof of Constitution: Partnership deed, Certificate of Incorporation (for companies/LLPs).
Registration Process
- Online Application: Fill out Form GST REG-01 on the GST portal.
- Document Upload: Upload scanned copies of all required documents.
- ARN Generation: Receive an Application Reference Number (ARN) upon submission.
- Verification: The tax officer verifies the application and documents.
- Approval: If everything is in order, the GST Registration Certificate (Form GST REG-06) is issued within 7 working days.
Understanding TCS for E-commerce
Tax Collected at Source (TCS) is a mechanism where the e-commerce operator (like Amazon) collects a percentage of the net value of taxable supplies made through it by other suppliers and deposits it with the government.
As a seller, you can claim the credit of this TCS in your electronic cash ledger and use it to pay your GST liability.
