Amazon is one of the largest e-commerce platforms in the world, offering sellers the opportunity to reach millions of customers. However, many new sellers in India often wonder whether they can start selling on Amazon without a GST (Goods and Services Tax) number. This blog will provide clarity on the topic, explaining when a GST number is required and how to proceed without one.
Understanding GST and Its Importance
GST is a tax levied on the supply of goods and services in India. Any business with an annual turnover exceeding the prescribed threshold (currently ₹40 lakh for goods and ₹20 lakh for services, or ₹10 lakh for special category states) must register for GST.
Selling on Amazon Without a GST Number
Yes, you can sell on Amazon India without a GST number, but with certain limitations. Let’s explore the scenarios in which a GST number is not required:
1. Selling GST-Exempt Categories
Some product categories are exempt from GST, meaning sellers can list and sell these items without needing a GST number. These categories include:
- Books (except e-books)
- Handmade products
- Agricultural products
- Unbranded food items
- Other GST-exempt goods
If you plan to sell only in these categories, you can proceed without GST registration. However, Amazon may still require a declaration stating that your products fall under the GST-exempt category.
2. Selling as an Individual or Small Business (Under Threshold Limit)
If your annual revenue is below the GST threshold limit, you may be able to sell on Amazon without GST. However, Amazon often requires sellers to provide a GST number for tax compliance, even if they are below the turnover limit.
3. Selling as an Amazon FBA (Fulfillment by Amazon) Seller
Amazon FBA sellers must have a GST number. If you plan to use Amazon’s warehouse and fulfillment services, GST registration is mandatory.
Limitations of Selling Without GST
If you choose to sell on Amazon without a GST number, you will face some restrictions:
- Limited product categories: You can only sell GST-exempt items.
- Ineligibility for Amazon FBA: You must fulfill orders yourself (FBM – Fulfilled by Merchant).
- No Input Tax Credit (ITC): Without GST registration, you cannot claim input tax credit on business expenses.
- Possible restrictions on scaling: If your business grows beyond the threshold limit, you’ll need to register for GST.
How to Sell Without a GST Number on Amazon?
If your products qualify for GST exemption, follow these steps:
- Sign up for an Amazon Seller Account at sellercentral.amazon.in.
- Choose the appropriate business type (Individual or Sole Proprietor).
- Select GST-exempt categories when listing your products.
- Provide a declaration that your products do not require GST registration.
- Start selling and ensure compliance with Amazon’s policies.
Should You Get a GST Number?
Even if you qualify to sell without a GST number, obtaining one has benefits:
- Access to more product categories
- Eligibility for Amazon FBA and Prime benefits
- Claim Input Tax Credit (ITC)
- Better business credibility
Conclusion
Selling on Amazon without a GST number is possible, but it comes with limitations. If you plan to sell GST-exempt products, you can proceed without registration. However, for long-term growth and access to more opportunities, obtaining a GST number is recommended.
At Infobeam Solution, we help sellers navigate Amazon’s requirements, register for GST, and optimize their selling strategies. Contact us today to get started!
