Is GST Mandatory to Sell on Amazon in India?
If you’re planning to start selling on Amazon in India or are already a seller, one of the first questions you’ll ask is: Do I need GST? The rules can seem confusing, yet getting this right is crucial for compliance, avoiding penalties, and building a long-term business. This guide breaks down exactly when GST is mandatory, when you may be exempt, and what you need to do to stay compliant.
1. What Is GST and Why It Matters for Amazon Sellers
GST (Goods and Services Tax) in India is a unified tax system for goods and services. For sellers on e-commerce platforms like Amazon:
- You collect GST from customers (on taxable goods).
- You can claim input tax credit (GST you paid on purchases used for business).
- You must file returns and comply with tax rules.
Not having GST when it’s required can lead to restrictions, withheld payments, penalties, or account issues with Amazon.
2. When GST Registration Is Mandatory for Amazon Sellers
You need to register for GST (i.e. obtain a GSTIN) if:
- You are supplying taxable goods or services via Amazon – even if turnover is low. Amazon’s policy states that sellers supplying taxable goods must obtain GST registration.
- You are selling from multiple states (inter-state supply) or shipping your goods from a state different from your business address.
- You want to issue GST-compliant invoices or use Amazon’s services that require GSTIN information.
Even if your turnover is below certain thresholds, GST registration may still be required in these conditions.
3. When You Might Be Exempt from GST
There are limited situations where GST might not be mandatory:
- When you sell exempt goods – some products are zero-rated or fully exempt under GST law. If your products fall under that category, GST may not be required.
- In certain states or under limited turnover if you qualify under specific thresholds and only sell non-taxable items, but Amazon’s rules tend to require GSTIN for most taxable product categories.
4. Amazon’s Policy on GST for Sellers
- Amazon requires sellers who deal in taxable goods or services to provide and maintain GSTIN in their seller profile/account.
- Without GSTIN, you may face limitations on what products you can list and may get locked out of certain seller features.
- Not having GST when required can lead to Amazon withholding payments or enforcing compliance.
5. How to Get Your GST Registration
If you need GST, here’s how to register:
- Sign up on the official GST portal with basic business or individual details.
- Provide PAN, Aadhaar, bank account information, proof of address, identity documents, etc.
- Once verified, you receive your GSTIN certificate.
- Update your Amazon seller account with your GSTIN and ensure all invoices are GST-compliant (include GSTIN, HSN codes, etc.).
6. Common Mistakes & How to Avoid Them
| Mistake | Problem It Causes | How to Avoid |
|---|---|---|
| Selling taxable goods without GSTIN | Legal risk, withheld payments, Amazon policy violation | Always check whether your product SKU is taxable; register in advance |
| Incorrect GST details on invoices | Buyers refuse invoice; compliance issues | Use templates and cross-check required fields |
| Delay in filing returns | Penalties and interest | Plan your GST compliance schedule and reminders |
| Not updating address or state of supply | Wrong IGST/SGST/CGST calculations | Keep your GST profile updated |
7. What If You Sell Below Turnover Threshold?
Some sellers wonder if they can skip GST if their sales are small. Key points:
- Turnover thresholds for GST exemption apply in some cases, but selling via Amazon marketplace often triggers requirements beyond just turnover, especially for inter-state supply or taxable goods.
- Even if exempted, providing GSTIN helps with credibility, input tax credit, and buyer trust.
- Sometimes, Amazon may still require GSTIN for registration or listing purposes even if turnover is low, especially for taxable categories.
Final Thoughts
Yes, in most cases, GST is mandatory if you plan to sell taxable goods on Amazon India. The safest path: check whether your goods are taxable, register for GSTIN if required, keep your invoices and compliance updated. If unsure, consult a tax professional to avoid trouble later.