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Not every marketplace seller needs a GSTIN from the first sale—but selling through an online marketplace does not automatically let you use the ordinary turnover threshold either. For taxable goods, GST registration is generally compulsory when the marketplace is required to collect tax at source (TCS) under section 52. Since 1 October 2023, qualifying small goods sellers may use a conditional exemption to sell within their State without registration, if they meet the turnover, enrolment and other conditions. Whether a marketplace supports that route is a separate question from whether the law permits it.
This guide covers Indian GST rules as of 7 October 2026. Check the current law, GST Portal procedure and marketplace onboarding requirements before listing; eligibility depends on your supplies, State and PAN-wide turnover.
Do you need GST registration to sell on Amazon or Flipkart?
For a seller of taxable goods, the general rule is yes if the marketplace is an e-commerce operator required to collect TCS under section 52 of the CGST Act. Section 24(ix) generally requires registration for suppliers selling through such an operator, even when turnover is below the usual section 22 threshold. The general rule and the conditional exception should not be confused: the exception is limited to qualifying goods sellers and has specific conditions.
The platform’s onboarding rules also matter in practice. Amazon’s public seller FAQ says GST details are mandatory when listing taxable goods, but it does not explain the later exemption route. That statement does not establish whether Amazon’s current onboarding flow accepts an eligible seller through the prescribed enrolment process. The available official information does not establish Flipkart’s current implementation of that route either. Confirm directly in the current seller registration flow before relying on the exemption.
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When can an unregistered seller use the small-seller exemption?
Notification 34/2023-Central Tax created a conditional exemption, effective 1 October 2023, for certain persons supplying goods through an e-commerce operator required to collect TCS under section 52. The seller’s aggregate turnover must remain within the applicable section 22 threshold in both the preceding and current financial years, and the seller must satisfy the notification’s conditions. The route is not a general exemption for all marketplace sales.
In particular, the exemption is tied to intra-State supplies and prescribed enrolment limitations. A seller should review the complete current notification and GST Portal instructions to confirm that each condition is met. Do not assume that remaining below a turnover threshold alone is enough, or that this route covers interstate sales, services or every marketplace.
How to check which GST route applies to you
- Identify what you sell. Establish whether your listings are taxable goods, exclusively GST-exempt goods, services or a mix. Amazon’s public FAQ says GST details may not be required for sellers listing only GST-exempt categories; check the marketplace’s current rules for your products.
- Check the marketplace’s role. Determine whether the operator is required to collect TCS under section 52 for your transactions. Section 24’s marketplace rule is not a blanket description of every online transaction or service category.
- Calculate aggregate turnover for your PAN. Include relevant supplies across India and across business channels, not just sales on Amazon, Flipkart or in one State. The calculation includes taxable and exempt supplies, exports and inter-State supplies, while excluding GST and cess.
- Find the threshold that applies to your facts. Consider the State or Union territory, whether you exclusively supply goods, and any applicable notification. Do not treat ₹40 lakh as a universal GST limit.
- If you are a below-threshold goods seller, test every exemption condition. Confirm that your turnover in both relevant financial years is within the applicable threshold, that your proposed supplies and enrolment meet the notification’s conditions, and that you will not make an ineligible interstate supply.
- Verify the actual onboarding option. Check the marketplace’s current official seller help or registration flow. Legal eligibility does not prove that a particular platform has enabled an enrolment workflow for unregistered sellers.
- If liable, register in each State where required before continuing without registration. Plan for the registration and return obligations associated with your status and transactions.
Which turnover threshold applies?
Section 22 sets the ordinary registration threshold, but it varies with the seller’s location and circumstances. The CGST Act states a general ₹20 lakh threshold outside special category States and ₹10 lakh for relevant special category States; it also permits notified higher limits, including up to ₹40 lakh for eligible suppliers exclusively engaged in supplying goods, subject to conditions. State notifications and the nature of the supplies matter, so no single figure applies to every marketplace seller.
Turnover is calculated on an all-India, PAN-wide basis. Under section 2(6), aggregate turnover includes taxable supplies, exempt supplies, exports and inter-State supplies made by persons sharing the same PAN, while excluding GST and cess. For example, sales through your own website and other marketplaces, as well as exempt supplies, can affect the threshold calculation; counting only one marketplace’s taxable sales can give the wrong result.
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How do GSTIN, enrolment and marketplace acceptance differ?
A GSTIN is the registration number issued to a registered taxpayer. The conditional exemption allows a qualifying person to make certain marketplace goods supplies without obtaining registration, subject to the notification’s conditions and prescribed enrolment limitations. It should not be treated as a general substitute for a GSTIN: its scope is narrower, and the marketplace must support a usable onboarding route.
Amazon’s public FAQ asks sellers for PAN and GST details and says GST details are required when listing taxable goods. That is useful evidence of the published onboarding instruction, but it does not describe how an eligible unregistered seller should complete the exemption’s enrolment process. For Flipkart and other marketplaces, confirm the current requirements in official seller guidance or onboarding rather than assuming that another platform’s policy applies.
What changes if you sell services or GST-exempt goods?
The Notification 34/2023 exemption described here concerns qualifying suppliers of goods. Do not apply it automatically to services. Some notified services supplied through an e-commerce operator are treated differently: under section 9(5), the operator pays tax as if it were the supplier. The applicable treatment depends on the service and the relevant notification.
For goods that are exclusively GST-exempt, registration and marketplace documentation may differ from the taxable-goods route. Amazon’s public FAQ says GST details may not be required when a seller lists only GST-exempt categories, but that is a platform instruction, not a complete ruling on every seller’s registration position. Mixed taxable and exempt sales require consideration of the full business and applicable rules.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What registration and reporting obligations follow?
Under section 25, a person liable to register under section 22 or 24 generally must apply in each State or Union territory where liable within 30 days of becoming liable. Casual and non-resident taxable persons have different timing rules. Voluntary registration is allowed; if a business has registrations in multiple States, each registration is treated as a distinct person for GST purposes.
For registered sellers, the GST Portal’s GSTR-1 guidance includes e-commerce supplies involving section 52 TCS and section 9(5). The specific reporting and filing pattern depends on the seller’s registration type and transactions. A marketplace’s TCS collection is not the same thing as the seller paying all GST on a sale: section 52 TCS applies when the operator collects consideration for taxable supplies, while notified section 9(5) services follow a different tax-payment rule.
Before choosing a route, make sure you can meet its ongoing reporting and recordkeeping requirements—not just the initial listing requirement. If your facts are close to a threshold or involve multiple States, mixed supplies or more than one marketplace, seek advice from a qualified GST professional.
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Official sources and marketplace guidance
- CGST Act, including sections 22, 24 and 25
- CBIC GST resources, including aggregate-turnover and e-commerce guidance
- Notification 34/2023-Central Tax
- GST Portal guidance and current enrolment and return procedures
- Amazon India seller registration FAQ
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