GST for E-Commerce Sellers on Amazon and Flipkart 2026 — Registration, TCS, Returns

Selling on Amazon, Flipkart, Meesho, or any other e-commerce platform in India comes with specific GST obligations that differ from regular businesses. The most important rule: you must register for GST regardless of your turnover. Here is the complete guide for FY 2025-26.

Mandatory GST Registration for E-Commerce Sellers

Under Section 24 of the CGST Act, e-commerce sellers must register for GST even if their annual turnover is below the normal threshold (₹40L for goods, ₹20L for services).

This means:

• A seller earning ₹5L/year on Amazon must still register for GST
• The ₹40L/₹20L exemption threshold does not apply to online sellers
• No composition scheme for inter-state e-commerce sellers

Exception: Service providers offering notified services (like transportation, housekeeping) through platforms like Urban Company are exempt from registration — the platform pays GST under Section 9(5).

What is TCS Under GST?

E-commerce operators (Amazon, Flipkart, Meesho, etc.) collect Tax Collected at Source (TCS) from sellers under Section 52 of the CGST Act.

Net value = Gross sales value minus returns/cancellations

Example:

• Monthly sales on Amazon: ₹2,00,000
• Returns: ₹10,000
• Net taxable value: ₹1,90,000
• TCS deducted by Amazon: ₹1,900 (1% of ₹1,90,000)
• Amount credited to your account: ₹1,98,100 (sales minus TCS)

How to Claim TCS Credit

The TCS deducted by the platform appears in your GSTR-2B (auto-populated from the platform's GSTR-8 filing). You can claim this as credit against your GST liability.

Steps:

1. Log in to GST portal → Services → Returns → GSTR-2B
2. Check Part B for TCS credits from e-commerce operators
3. This credit is auto-populated in your GSTR-3B
4. Adjust against your output GST liability

If TCS credit exceeds your GST liability, you can claim a refund.

GST Returns for E-Commerce Sellers

As an e-commerce seller, you file the same returns as any regular GST taxpayer:

GSTR-8 is filed by the e-commerce operator (Amazon/Flipkart), not by you. However, you should verify that the TCS shown in your GSTR-2B matches the TCS certificate provided by the platform.

GST Rates on Common E-Commerce Products

Always verify the HSN code and applicable rate for your specific product on the GST rate schedule.

Input Tax Credit for E-Commerce Sellers

You can claim ITC on:

• Packaging materials purchased for your products
• Courier/logistics services (if GST-registered vendor)
• Warehouse rent (if commercial property)
• Office supplies and equipment
• Professional services (CA, legal)

You cannot claim ITC on:

• Personal expenses
• Motor vehicles (unless used for delivery business)
• Food and beverages

Invoicing Requirements

Every sale through an e-commerce platform requires a proper GST invoice:

• Your GSTIN
• Buyer's name and address
• HSN code
• GST rate and amount (CGST + SGST or IGST)
• Invoice number and date

Most platforms generate invoices on your behalf, but you remain responsible for the accuracy of GST details.

Inter-State vs Intra-State Sales

E-commerce platforms typically handle this automatically based on the delivery address. Verify your GSTR-1 to ensure correct classification.

Composition Scheme — Not Available for Most E-Commerce Sellers

The composition scheme (1–6% flat rate, no ITC) is not available for:

• Sellers making inter-state supplies
• Sellers of goods not eligible for composition

If you sell only within your state and your turnover is below ₹1.5 crore, you may be eligible for the composition scheme. However, most Amazon/Flipkart sellers ship pan-India, making them ineligible.

Compliance Checklist for E-Commerce Sellers

• GST registration obtained (mandatory regardless of turnover)
• HSN codes correctly mapped for all products
• GSTR-1 filed by 11th of each month
• GSTR-3B filed by 20th of each month
• TCS credit verified in GSTR-2B each month
• ITC reconciled with purchase invoices
• Annual return GSTR-9 filed by December 31
• GST invoices generated for all sales

Frequently Asked Questions

Do I need GST registration if I only sell on one platform?

Yes. The mandatory registration rule applies regardless of which platform you sell on or how many platforms you use. Even a single-platform seller with low turnover must register.

What happens if I don't register for GST?

The e-commerce platform will not allow you to list products without a GSTIN. If you operate without registration, you face penalties under Section 122 of the CGST Act — up to ₹10,000 or the tax evaded, whichever is higher.

Can I sell on Amazon without GST if I only sell exempt goods?

If you exclusively sell GST-exempt goods (like fresh vegetables, books), you may not need GST registration. However, most product categories on Amazon attract GST. Consult a CA to confirm your specific situation.

How do I get a TCS certificate from Amazon or Flipkart?

Platforms provide monthly TCS certificates in your seller dashboard. Download these and reconcile with your GSTR-2B. Any discrepancy should be raised with the platform's seller support.

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