When is GST registration mandatory for Amazon sellers?
Under Section 24 of the CGST Act, anyone supplying goods through an e-commerce operator that must collect tax at source (TCS) under Section 52 has to register for GST compulsorily. Amazon is such an operator. That is why the usual ₹40 lakh turnover limit for goods does not protect a new marketplace seller: you can be at ₹5,000 of sales and still need a GSTIN.
Two practical points follow from this:
- Composition is possible, but only within your state. Since 1 October 2023, composition taxpayers may supply goods through an e-commerce operator. They still cannot make inter-state supplies or claim input tax credit, so for a seller who ships across India a regular GST registration remains the normal route.
- TCS and TDS are deducted either way. Amazon collects GST TCS of 0.5% on the net value of taxable sales (0.25% CGST plus 0.25% SGST within a state, 0.5% IGST across states, since 10 July 2024). It also deducts income-tax TDS of 0.1% (earlier Section 194-O, now Section 393(1) of the Income-tax Act, 2025, from 1 April 2026). Individuals and HUFs with total sales up to ₹5 lakh in the year are outside TDS. The TCS lands in your GST cash ledger, which needs a GSTIN to use.
Can small sellers use a GST enrolment number instead?
Since 1 October 2023, Notification 34/2023-Central Tax lets small goods sellers skip full registration and get an enrolment number from the GST portal instead. This is the closest thing to a real way to sell on Amazon without GST. The conditions are strict:
- Your aggregate turnover (all India, same PAN, online and offline) must stay within the normal registration threshold in both the previous and current financial year.
- You supply goods only within one state or union territory. No inter-state sales at all.
- You sell through e-commerce operators in that one state only, and you hold a valid PAN.
- You declare your PAN, business address and state on the GST portal, which validates them and issues the enrolment number. You get one enrolment number per state.
- You cannot sell on the marketplace until the number is issued.
If you later cross the threshold or become liable to register for any other reason, the enrolment number stops being valid from the date your registration takes effect.
In practice, this suits someone in, say, Kerala selling a handmade or local product only to Kerala customers. It does not suit anyone planning to sell to the rest of India, which is what most Amazon sellers want. Marketplaces have to restrict delivery to your home state; Meesho, for one, has said it shows non-GST sellers' products only within the seller's own state.
Can you sell exempt products on Amazon without GST?
Section 23(1)(a) says a person who deals exclusively in wholly exempt or non-taxable goods does not need to register. Amazon's own registration flow offers a non-GST option for sellers of products such as books. Printed books, newspapers, exercise books and maps are among the goods exempt under the current rate schedule (Notification 10/2025-Central Tax (Rate), in force from 22 September 2025). Several staples such as cereals, pulses and flour are also nil-rated when they are not sold pre-packaged and labelled. Since July 2022 the test is packaging and labelling, not branding, so check the notification before assuming.
The catch is the word "exclusively". If even one item in your catalogue is taxable, say a book bag alongside your books, you are outside this route. Exempt rates also get revised, so the HSN code of every product should be checked against the latest schedule.
| Your situation | GST registration needed? |
|---|---|
| Taxable goods, selling across states | Yes, full GSTIN |
| Taxable goods, one state only, within turnover limit | No, an enrolment number is enough |
| Only wholly exempt goods | No, subject to Amazon accepting the non-GST option |
| Mix of exempt and taxable goods | Yes, treat as taxable |
| Services through the platform | Depends; different rules apply |
What does Amazon actually ask for at seller registration?
Amazon.in's seller registration asks for your GST details (GSTIN verified against your registration certificate), business name, pickup address, bank account, a phone number verified by OTP, and at least one product listing. Your pickup address has to be in the same state as your GST registration. The non-GST option is meant for exempt-product sellers.
Amazon sets its own rules for enrolment-number sellers, including access to Fulfilment by Amazon, inside Seller Central, and they can change. Confirm there before you plan around them.
What goes wrong when sellers get GST wrong?
- Inter-state sale on an enrolment number. An order from outside your state breaks the exemption condition, and you may then owe tax and penalties.
- Crossing the limit unnoticed. Turnover is counted across all your sales under one PAN, not just Amazon.
- Calling a taxable product exempt. If the department later disagrees with your HSN classification, tax with interest can be demanded for past sales.
- Penalties and account trouble. The CGST Act has penalty provisions for supplying without required registration, and a marketplace can hold payouts or suspend an account when documents do not match.
Can you sell on Flipkart or Meesho without GST?
The same law applies on every marketplace that collects TCS. Meesho publicly opened its platform to non-GST sellers using an enrolment ID from 1 October 2023, within the intra-state limits above. Flipkart's onboarding rules for enrolment-number sellers are not clearly published, so confirm directly with Seller Support. Each platform sets its own policies on top of the GST rules.
What we'd check in your case
- What you sell, and the HSN code and current GST rate of each product.
- Where you sell from and whether you will ever ship outside your state.
- Your total turnover across all channels under your PAN, and the threshold for your state.
- Whether a regular GST registration costs you less than the restrictions of an enrolment number.
- Your business structure and how it affects what the marketplace will accept.
For many first-time sellers, a GSTIN turns out to be simpler than working around its absence. If it is not needed for you, we will tell you so before quoting anything. See our GST registration service or message us on WhatsApp with your product and state, and we will tell you which route fits.
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 on Amazon with only a PAN card?
Not directly. For taxable goods you need either a GSTIN or, if you qualify, a GST enrolment number, and the enrolment number itself requires a valid PAN. If you sell only wholly exempt products such as books, Amazon's non-GST option may let you register without either.
Can I sell on Amazon without GST if my turnover is below ₹40 lakh?
Low turnover alone is not enough. Marketplace sellers of goods must register regardless of turnover, unless they use the enrolment number route, which also needs you to sell only within one state.
Can I sell on Amazon from one state to another using an enrolment number?
No. The enrolment number route allows intra-state supplies only. If you want to ship to customers in other states, you need a full GSTIN.
Is GST TCS on Amazon extra cost for me?
It is not an extra tax. Amazon holds back 0.5% of the net taxable value of your sales and deposits it to the government, and it is credited to your GST cash ledger where you can use it against your tax liability. It does affect cash flow, which is one reason sellers should plan for it.
Do I need GST to sell books on Amazon?
If you sell only books and other wholly exempt goods, you may not need to register under Section 23(1)(a). Check each product's HSN code and the current exemption notification, and confirm Amazon's non-GST option applies to your account.
See our service: GST registration for online sellers →
Sources
- CGST Act Section 23 (persons not liable for registration)
- CGST Act Section 24 (compulsory registration) - summary
- Notification 34/2023-Central Tax (GST Council listing)
- Notification 34/2023-Central Tax conditions (summary)
- GST Council FAQs on TCS under Section 52
- Notification 15/2024-Central Tax TCS rate (summary)
- TDS on e-commerce under Section 393(1) of Income-tax Act 2025 (summary)
- Amazon.in seller registration requirements
- Notification 10/2025-Central Tax (Rate) exemption list (summary)
- Meesho non-GST seller announcement
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.