How do Section 23 and Section 24 of the CGST Act fit together?
Section 23(1)(a) of the CGST Act says a person engaged exclusively in supplying goods or services that are not liable to tax, or are wholly exempt from tax, is not liable to registration. Section 24 lists people who must register even below the turnover limit. Clause (ix) covers suppliers who sell through an e-commerce operator that is required to collect tax at source (TCS) under Section 52.
Two points make the difference for you. First, Section 24 begins "notwithstanding anything in Section 22(1)", the turnover threshold. It does not say it overrides Section 23. Second, the operator's TCS duty under Section 52 is calculated on the net value of taxable supplies, and the GST Council's FAQs on TCS state that TCS is not collected on exempt supplies. So an exclusively exempt seller is not someone Amazon has to collect TCS on, and the usual reading is that Section 24(ix) does not pull you in.
This is the common reading, not a ruling written for marketplace sellers. Some advance rulings have held that an exempt-only supplier still had to register when it also had a reverse-charge liability. That is a reason to check your own facts, not a reason to register by default.
Which goods are genuinely GST-exempt?
Exempt goods are listed in the CGST rate notification for exemptions. The older Notification 2/2017-Central Tax (Rate) was replaced by Notification 10/2025-Central Tax (Rate), effective 22 September 2025. The Integrated Tax equivalent covers inter-state supplies. The rules change with GST Council decisions, so check the current notification for your exact HSN heading before you list.
| Goods | Position (check current notification) |
|---|---|
| Printed books, including Braille books (HSN 4901) | Exempt, no packaging condition |
| Exercise books and notebooks (HSN 4820), printed maps and atlases (HSN 4905) | Exempt in the 2025 notification. These were taxed earlier, so older blog posts may be wrong |
| Fresh vegetables and fresh fruits | Exempt, no pre-packaged condition on the fresh items |
| Paneer or chena | Exempt even if pre-packaged and labelled (since 22 September 2025) |
| Curd, lassi, buttermilk, honey, cereals, rice, wheat, pulses, flours, puffed rice, jaggery | Exempt only if not pre-packaged and labelled |
The pre-packaged rule matters most for food sellers. Since 18 July 2022, these items attract GST when sold as a pre-packaged and labelled retail pack of up to 25 kg or 25 litres that carries Legal Metrology declarations. A "no brand" sticker does not rescue a sealed, labelled pack. Food sold loose is a different matter, but a loose-sale Amazon listing is unusual. Most food on Amazon is packed and labelled, so many food sellers who assume they are exempt are not.
"Exempt" here includes nil-rated goods. For registration, the practical test is only whether every item you sell, to every buyer, is outside GST tax liability.
What does Amazon accept at registration without a GSTIN?
Amazon India's seller registration guide says sellers of tax-exempt items such as books or bangles do not need to enter GST details. During sign-up you pick the option stating that you only sell non-GST categories, like books, and continue without a GSTIN. You still need your PAN, bank account, ID and address proof, and mobile and email details like any other seller.
That wording comes from Amazon's public seller guide. The screens inside Seller Central change, and Amazon decides which categories qualify. Confirm the current options during sign-up. Do not assume that a category being open to you means your specific product is exempt.
What happens if you later add a taxable product?
Registration is not a one-time decision. The first taxable product you sell through a marketplace brings you into the normal rule: you need GST registration, or in limited cases a GST enrolment number for small intra-state goods sellers. Amazon will also require a GSTIN to list in taxable categories.
- Apply for registration before you list or sell the taxable item, not after.
- A mixed catalogue (books plus, say, stationery accessories or a branded packet of atta) is not "exclusively exempt", so Section 23(1)(a) no longer protects you for any of it.
- Once registered, you file GST returns, the marketplace collects TCS (currently 0.5%) on your taxable sales, and you reconcile it. See our page on GST registration.
- Exempt sales stay exempt after registration. They are still reported in returns, and input tax credit related to them is restricted.
What are the risks of getting it wrong?
- Mis-classification. A product you believed was exempt turns out to be taxable. Tax, interest and penalty can be demanded for the period you sold without registration.
- Account action. Amazon can ask for GST details or restrict listings if it believes a product needs a GSTIN.
- Income-tax TDS still applies. The marketplace deducts TDS at 0.1% on the gross value of sales. This is now under Section 393(1) of the Income-tax Act, 2025 (the old Section 194-O). Resident individuals and HUFs with sales up to ₹5 lakh in the year are generally outside this, if PAN or Aadhaar is given. This is separate from GST.
- Inter-state and other triggers. If you ever have a reverse-charge liability, for example on certain imported services, get advice, because that is where rulings have gone against exempt-only suppliers.
What we'd check in your case
- The exact HSN and description of every product, matched against the current exemption notification and not a blog list.
- For food: whether each item will be sold pre-packaged and labelled, and the pack size.
- Whether you plan to add any taxable product in the next 6 to 12 months, such as bookmarks, stationery, merchandise or gift items.
- Whether you also sell on other platforms or on your own website, where the rules for registration and Amazon's choices differ.
- Whether voluntary registration is worth it anyway, for example if you want to claim input credit, sell to businesses who ask for GST invoices, or add taxable products soon.
If it turns out you are exempt, we will tell you not to register and what to keep on file to support that position. If you are not, we will quote a fixed fee for the right registration. Send us your product list on WhatsApp and we will reply within 3 hours. See also our trademark and Amazon Brand Registry help and our FAQ.
Not sure how this applies to you? Tell us what you sell and where. We'll tell you what you need, and what you don't, in a free 15-minute fit check.
Ask on WhatsAppRelated questions
Can I sell books on Amazon without GST registration?
Printed books (HSN 4901) are exempt from GST, and Amazon India's seller guide says book sellers can choose the non-GST option at sign-up and proceed without a GSTIN. You still need PAN and bank details. If you add any taxable item later, you will need to register.
Is fresh unbranded produce exempt if I sell it on Amazon?
Fresh vegetables and fruits are exempt under the current notification. Whether Amazon lets you sell a particular grocery item on that basis is Amazon's category and policy decision, so confirm it in Seller Central. Pre-packaged and labelled items such as cereals, flour, pulses, curd or honey are a separate case and attract GST.
Does the marketplace collect TCS on my exempt sales?
GST TCS under Section 52 applies to taxable supplies only, and the GST Council FAQs say TCS is not collected on exempt supplies. Income-tax TDS at 0.1% is a different levy and is deducted on gross sales, subject to the ₹5 lakh threshold for resident individuals and HUFs.
Can I register for GST voluntarily even if my goods are exempt?
Yes, voluntary registration is allowed. It may help if you plan to add taxable products soon or want a GSTIN for B2B customers. Once registered, you take on monthly or quarterly return filing, even for nil or exempt sales.
Can I use a GST enrolment number instead of a GSTIN?
Only if you are a small goods seller selling intra-state through e-commerce operators with turnover below the threshold, and selling taxable goods. It does not allow inter-state sales. It is not needed if you sell only exempt goods.
See our service: GST registration for online sellers →
Sources
- CGST Act, Section 23 - Persons not liable for registration
- CGST Act, Section 24 - Compulsory registration in certain cases
- GST Council FAQs on Tax Collection at Source (e-commerce)
- GST Council FAQs on pre-packaged and labelled goods
- GST Council FAQs on 56th Council decisions (September 2025)
- Notification 10/2025-Central Tax (Rate), exempt goods (TaxGuru reproduction)
- Amazon India seller registration guide
- Sell Books Online on Amazon.in
- Exclusively exempt suppliers and registration (TaxGuru, discusses AAR rulings)
- TDS on e-commerce transactions, Section 393(1) (formerly 194-O)
General information based on rules as of November 2026, not legal or tax advice for your specific case. Rules change; we confirm what applies to you before any filing.