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Whether an online seller in India needs GST registration depends on more than turnover. You must also consider whether you sell goods or services, where the supply takes place, whether you sell through an e-commerce operator that collects tax at source (TCS), and whether a current exemption applies. CBIC’s published threshold figures date to 1 April 2019; they are useful context, but they do not settle every seller’s current liability. In particular, below-threshold marketplace sellers should verify the current notification and enrollment conditions before deciding to sell without registration.
Start with the five facts that determine the answer
Before opening a marketplace account or choosing a GST registration status, establish the facts below. A seller may have to register even when turnover is below a commonly quoted threshold, while some marketplace situations may be covered by a conditional exemption. The result depends on the applicable law and the seller’s actual operations.
- What do you supply? Goods and services have different threshold figures in CBIC’s 2019 update. Services notified under section 9(5) also have a distinct tax-payment arrangement when supplied through an e-commerce operator.
- What is your aggregate turnover under your PAN? Do not assess just one marketplace account, one product line, or one GST registration in isolation. The registration FAQ describes the threshold test using aggregate annual PAN-based turnover.
- Where are your supplies made? Identify whether supplies are intra-State or inter-State, and the State or Union territory in which you are liable to register. Shipping across a State boundary can raise a compulsory-registration issue, subject to applicable exceptions.
- How does the marketplace handle the sale? Determine whether the platform is an e-commerce operator required to collect section 52 TCS for the transaction. A marketplace sale is not automatically the same as an ordinary direct sale for registration analysis.
- Does a current notification or scheme apply? Statutory compulsory-registration categories can be affected by government notifications. Confirm the exact conditions, permitted supply scope, and any GST Portal or marketplace enrollment steps for the seller’s circumstances.
Threshold figures: useful baseline, not a complete decision
CBIC’s GST update dated 1 April 2019 records a threshold of ₹40 lakh for suppliers of goods generally and ₹20 lakh in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand, effective from that date. The same update gives service thresholds of ₹20 lakh generally and ₹10 lakh in Manipur, Mizoram, Nagaland, and Tripura. Those are figures published in a dated 2019 update, not a complete determination of the rule applicable to every seller in 2026. State or UT, supply mix, seller category, and later notifications can affect the outcome.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsUse aggregate turnover on a PAN basis rather than counting only sales made through one platform. A sole proprietor should assess business activity under the proprietor’s PAN consistently with the applicable GST rules. If a business sells both goods and services, confirm the applicable threshold and treatment for its actual supplies instead of assuming that the goods figure alone answers the question.
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How online marketplaces change the registration question
Section 24 of the CGST Act includes certain inter-State taxable suppliers and suppliers making supplies through an e-commerce operator required to collect section 52 TCS among compulsory-registration categories. CBIC’s e-commerce FAQ describes this general rule, but its broad wording does not resolve later conditional exemptions for some below-threshold, intra-State goods suppliers. The existence and conditions of an exemption matter: do not treat the statute’s general category as an unconditional rule for every small marketplace seller, and do not assume that turnover below a headline threshold automatically permits unregistered sales.
The current conditions for the reported below-threshold intra-State marketplace-goods route—including the controlling notification, eligible supply scope, portal enrollment, and marketplace implementation—are not established by the official material cited here. A seller considering that route should check current GST notifications and the GST Portal and marketplace instructions before relying on it.
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Marketplace TCS is not the same as the seller’s registration test
An e-commerce operator is broadly a person that owns, operates, or manages a digital or electronic facility or platform. Section 52 TCS concerns collection by an operator on specified supplies; it is distinct from the question of whether the seller must register. CBIC’s older sectoral FAQ discusses TCS and gives a rate, but that page may reflect earlier law. Do not use its percentage as the current rate without checking the current law and notifications.
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Section 9(5) services are a separate case
For services notified under section 9(5), the e-commerce operator is treated as the supplier for paying GST. That operator-payment arrangement is different from ordinary supplies made by a seller through a marketplace, where the seller’s registration position and any section 52 TCS treatment must be considered separately. Check whether the particular service is covered by a current section 9(5) notification.
Direct sales, interstate orders and marketplace sales compared
| Seller situation | Why it matters | What to verify |
|---|---|---|
| Goods sold directly to customers | The applicable goods threshold and compulsory-registration categories determine the starting point. | Current threshold and exemptions for the seller’s State or UT, PAN-based aggregate turnover, and whether any supply is inter-State. |
| Goods sold through a marketplace with section 52 TCS | Section 24 refers to specified suppliers using operators required to collect TCS; a conditional route may apply to some below-threshold intra-State goods suppliers. | Whether the operator collects section 52 TCS for the supply, the current exemption notification, eligibility conditions, and required portal or platform enrollment. |
| Taxable goods or services supplied inter-State | Inter-State taxable suppliers appear in the Act’s compulsory-registration categories, subject to notified exceptions. | Place-of-supply facts and any current exception that applies to the seller or supply. |
| Service supplied through an operator | Ordinary marketplace services and notified section 9(5) services can have different tax-payment treatment. | Whether the service is covered by a current section 9(5) notification and the seller’s own registration position. |
| Stock or business presence in more than one State or UT | Registration is State/UT-specific; registrations in different States or UTs are treated as distinct persons under the Act. | Places of business, inventory or fulfillment locations, and where the seller is liable to register. |
Which State or UT registration do you need?
GST registration is not simply determined by the seller’s home address. Under the CGST Act, a person liable to register must apply in each State or Union territory in which they are liable. A single registration in each State or UT is the default, and registrations held in different States or UTs are treated as distinct persons under the Act.
For an online business, review the actual places of business and supply arrangements, including stock and fulfillment locations. Selling online does not by itself mean that every delivery destination requires a separate registration; the relevant question is where the seller is liable under the applicable GST rules. If inventory, business premises, or other operations span State or UT borders, get advice based on those facts rather than relying only on the address used for marketplace onboarding.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Applying after you determine that liability exists
The GST Portal’s normal-taxpayer guide describes an online application that asks for PAN, legal name, State or UT, place-of-business details, and business information. The application process does not decide whether you are legally liable; establish that first by applying the threshold, supply, marketplace, and exemption rules to your facts.
- Confirm the liability date. Identify when the applicable registration requirement began.
- Apply through the GST Portal. Use the registration workflow for a normal taxpayer and provide the requested identity, State or UT, business, and place-of-business information.
- Observe the filing window. Under the Act, a person liable under section 22 or 24 generally applies within 30 days of becoming liable. A casual taxable person or non-resident taxable person applies at least five days before commencing business.
- Check the effective date. The Portal guide says that a normal-taxpayer application filed within 30 days of liability takes effect from the date liability arose; if filed late, the effective date is the date registration is granted.
Returns and ongoing compliance after registration
Registration brings filing obligations. The GST Portal describes GSTR-1 as the statement of outward supplies for normal and casual registered taxpayers, with monthly or quarterly filing options and reporting fields that include e-commerce supplies. Composition taxpayers and specified categories are excluded from GSTR-1. Check current eligibility, filing frequency, and return guidance on the Portal; the right filing pattern depends on the taxpayer’s category and applicable rules.
Quick Recap
Practical checks before selling without registration
- Calculate aggregate annual turnover on the relevant PAN basis, not just turnover from one channel.
- Confirm whether the business supplies goods, services, or both and identify any service that may fall under section 9(5).
- Map where supplies are made and whether any taxable supply is inter-State.
- Ask the marketplace whether it is collecting section 52 TCS for the relevant transaction; do not infer the answer from the word “marketplace.”
- For below-threshold intra-State marketplace goods sales, verify the current notification’s conditions and the actual Portal and operator enrollment route before relying on an exemption.
- Review each State or UT where the business has a place of business, stock, or other facts that may create registration liability.
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