eCommerce GST Registration

Introduction

GST registration is compulsory for all eCommerce businesses in India, regardless of their annual turnover. Every eCommerce operator—including those without a physical presence in India—is required to register under GST and obtain a Goods and Services Tax Identification Number (GSTIN). This GSTIN must be displayed on all invoices and transaction documents to ensure legal compliance and maintain transparency.

In this article, we’ll break down the essentials of GST registration for eCommerce businesses, covering the key requirements, step-by-step process, and the benefits of compliance. Whether you’re a new seller or a growing online platform, understanding your GST obligations is crucial.

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What is GST Registration?

GST registration is the process through which a business obtains a unique 15-digit Goods and Services Tax Identification Number (GSTIN). This number is required to legally collect GST from customers and remit it to the government. For eCommerce businesses in India, GST registration is mandatory—regardless of revenue—ensuring full compliance with tax laws and enabling smoother business operations.

Why is GST Mandatory for eCommerce Businesses?

GST (Goods and Services Tax) is a destination-based, unified tax levied on the supply of goods and services. It replaced the previous complex system of indirect taxes, eliminating cascading tax effects and enhancing efficiency.

eCommerce businesses must register under GST due to:

Their expansive operational reach across states.
The nature of intermediary platforms (e.g., Amazon, Flipkart) that facilitate multiple vendor transactions.
Regulatory requirements that mandate uniform tax compliance, irrespective of turnover.

Benefits of GST Registration for eCommerce Businesses

GST registration offers several advantages to eCommerce sellers, including:

1. Legal Recognition

Positions the seller as a legally recognized supplier.
Enhances credibility with customers, vendors, and authorities.

2. Input Tax Credit (ITC)

Enables businesses to claim credit for GST paid on purchases.
Reduces overall tax burden, thereby improving profitability.

3. Mandatory Compliance

GST registration is compulsory for eCommerce sellers, irrespective of turnover.
Helps avoid penalties and ensures uninterrupted business.

4. Access to Major Marketplaces

Online platforms like Amazon and Flipkart require GSTIN for registration.
Facilitates broader market access and seller visibility.

5. Seamless Inter-State Sales

Registered sellers can sell goods/services across India without worrying about state-specific taxes.

6. Wider Customer Base

Consumers prefer tax-compliant businesses, leading to improved brand trust and loyalty.

7. Competitive Edge

Enables small sellers to compete with larger enterprises on equal tax terms.

8. Business Expansion

Encourages scalability through legal and financial support, including easier access to loans.

9. Streamlined Compliance

GST unifies multiple taxes, simplifying compliance and reducing administrative burdens.

10. Digital-First Process

Online filing, registration, and returns complement digital eCommerce operations.

Who Must Register for GST?

GST registration is mandatory for:

All eCommerce operators (e.g., Amazon, Flipkart, Zomato).
Sellers/aggregators selling via eCommerce platforms.
Foreign entities supplying goods/services through Indian platforms.
OIDAR service providers offering digital services to Indian consumers.

Even if turnover is below the threshold (₹40 lakhs for goods, ₹20 lakhs for services), eCommerce sellers must register.

Eligibility Criteria for eCommerce GST Registration

Business Type	Turnover Threshold	GST Registration Requirement
Suppliers of Goods	₹40 lakhs	Mandatory if turnover exceeds limit
Suppliers of Services	₹20 lakhs	Mandatory if turnover exceeds limit
E-commerce Operators	No threshold	Mandatory, irrespective of turnover
Sellers on eCommerce Platforms	No threshold	Mandatory, irrespective of turnover
OIDAR Service Providers (foreign)	No threshold	Mandatory, irrespective of turnover

Key GST Compliance Requirements for eCommerce Sellers

E-commerce sellers operating in India must adhere to specific Goods and Services Tax (GST) regulations to ensure legal compliance and smooth business operations. The key requirements are outlined below:

1. Mandatory GST Registration

E-commerce sellers are required to register for GST regardless of their annual turnover. This obligation applies even if the seller’s turnover does not exceed ₹40 lakhs (or ₹20 lakhs for businesses in special category states).

Once registered, sellers must:

Display their GSTIN (Goods and Services Tax Identification Number) on their website.
Include their GSTIN on all invoices issued to customers.

2. Collection and Payment of GST

Sellers must collect GST on all taxable supplies made through their e-commerce platform.
The applicable GST rate is determined by the nature of the goods or services sold.
The collected GST must be paid to the government within the specified due dates.

3. Filing of GST Returns

E-commerce sellers are obligated to file regular GST returns to report their sales, purchases, and tax liabilities. Key return forms include:

GSTR-1 – For reporting outward supplies (sales).
GSTR-3B – A monthly summary return of sales, purchases, and tax liability. Filing frequency depends on the seller’s turnover.

4. Tax Collected at Source (TCS)

E-commerce operators must deduct 1% TCS on each transaction and deposit it with the government.
Sellers receive payments net of the 1% TCS deduction.
All dealers or traders selling via e-commerce platforms must register for GST, regardless of their turnover, to claim the TCS collected on their behalf.

5. Exemptions and Restrictions

Service Providers Exemption: Service providers with turnover below ₹20 lakhs (₹10 lakhs in special category states) and not subject to TCS are exempt from GST registration.
Composition Scheme Restriction: E-commerce operators liable to collect TCS under Section 52 are not eligible for the Composition Scheme, which allows simpler compliance and lower tax rates.

6. GSTIN on Invoices

It is mandatory for e-commerce operators to clearly display their GSTIN on all invoices. Non-compliance can lead to penalties and operational difficulties for both platform operators and sellers.

7. GST Registration for TCS-Liable E-Commerce Entities

Under Section 24 of the CGST Act, all e-commerce entities responsible for collecting TCS must register for GST. The registration process involves:

Submitting Form GST REG-07 online via the GST portal or at a facilitation center.
Electronic Verification through EVC or digital signature.
If the operator lacks a physical presence in a specific state or union territory, this must be indicated in Part A of the form, while the principal place of business (if different) is to be listed in Part B.

Documents Required for GST Registration for E-Commerce Businesses

To register for GST as an e-commerce business in India, applicants must provide specific documents to verify their identity, business structure, and compliance with tax regulations. The required documents include:

1. PAN Card of the Proprietor or Company Director

Serves as the primary tax identification for the business owner or director, used for tracking all tax-related transactions.

2. PAN Card of the Company

Reflects the company’s official tax identity and is essential for registering the business entity under GST.

3. Certificate of Incorporation

Issued by the Ministry of Corporate Affairs, this certificate confirms that the company is legally registered as a separate entity.

4. Memorandum of Association (MOA)

Defines the company’s objectives, scope of operations, and its relationship with external stakeholders.

5. Articles of Association (AOA)

Outlines the company’s internal governance structure and operational rules, including the roles and responsibilities of directors.

6. PAN Card of the Authorised Signatory

Required to establish the tax identity of the person authorized to act on behalf of the company for GST compliance.

7. Aadhaar Card of the Authorised Signatory

Used to verify the identity of the authorised signatory and link their credentials with the GST registration process.

8. TCS (Tax Collected at Source) Details

Applicants must provide relevant information pertaining to TCS, as e-commerce operators are required to deduct and deposit TCS under GST provisions.

Step-by-Step Guide to GST Registration for E-Commerce Businesses

Registering for GST is mandatory for all e-commerce businesses in India. Below is a detailed, step-by-step guide to help you through the registration process:

Step 1: Access the GST Portal

Visit the official GST website: https://www.gst.gov.in
Navigate to Services > Registration > New Registration

Step 2: Begin New Registration

On the registration page, select ‘Taxpayer’ under the “I am a” dropdown.
Fill in the required details:
- State/UT
- Legal name of the business (as per PAN)
- PAN number
- Email ID and mobile number
Enter the captcha code and click ‘Proceed’

Step 3: OTP Verification

You will receive OTPs on the email and mobile number provided.
Enter both OTPs and click ‘Proceed’ to complete Part A of Form GST REG-01

Step 4: Generate Temporary Reference Number (TRN)

Upon successful verification, a Temporary Reference Number (TRN) will be generated.
Click ‘Proceed’, enter your TRN and captcha, then click again on ‘Proceed’
Re-verify using the OTP sent to your registered contact details

Step 5: Complete Part B of the Registration

Your saved application (with a 15-day expiry) will appear. Click ‘Action’ to proceed
Complete the following ten sections:
1. Business Details
2. Promoters/Partners
3. Authorized Signatory
4. Authorized Representative
5. Principal Place of Business
6. Additional Places of Business
7. Goods and Services
8. State-Specific Information
9. Aadhaar Authentication
10. Verification
Choose the authorized signatory from the dropdown
Enter the location where the form is being filed (e.g., Bengaluru, Delhi)

Step 6: Digital Signature and Submission

Submit the form using one of the following methods:
- Digital Signature Certificate (DSC)
- E-sign (OTP sent to Aadhaar-linked mobile number)
- Electronic Verification Code (EVC) (OTP sent to registered mobile)
Upon successful submission, a confirmation message will appear

Step 7: Acknowledgment and Application Tracking

You’ll receive an Acknowledgment Receipt and Application Reference Number (ARN) on your registered email and mobile
To monitor progress, use the ‘Track Application Status’ feature on the GST portal

Step 8: Receive GSTIN and Certificate

Within approximately six working days, the application will be reviewed
If approved, you will be issued:
- A 15-digit GSTIN (Goods and Services Taxpayer Identification Number)
- A formal GST registration certificate (Form GST REG-06)

Post-Registration Compliance for E-Commerce Businesses

After obtaining GST registration, e-commerce businesses are required to fulfill the following key obligations:

1. Display of GSTIN

The Goods and Services Tax Identification Number (GSTIN) must be clearly displayed on:
- The business’s website
- All invoices issued to customers

2. Regular Filing of GST Returns

Registered e-commerce entities must file periodic GST returns, including:

GSTR-1: To report outward supplies (sales made)
GSTR-3B: A monthly return summarizing sales, purchases, input tax credit, and net tax payable
GSTR-8: Filed by e-commerce operators to report Tax Collected at Source (TCS)

3. GST Collection and Payment

GST must be collected on all taxable supplies made through the platform
The collected tax must be deposited with the government within the stipulated deadlines

Conditions for GST Registration Cancellation in E-Commerce

While GST registration is mandatory for e-commerce operators and sellers in India, there are specific situations where cancellation is allowed, either voluntarily or by order of the authorities. Below are the key scenarios:

1. Business Closure

If an e-commerce business is permanently shut down or discontinued:

It may apply for cancellation of its GST registration.
Before applying, the business must ensure all outstanding GST returns are filed and tax dues are cleared.
No further GST collection or payment obligations remain post-cancellation.

2. Transfer of Business

GST registration can be cancelled if the business is:

Merged, demerged, acquired, or transferred to another entity.
The new (successor) entity must obtain fresh GST registration.
The original entity can then proceed with cancellation of its existing registration.

3. Change in Business Constitution

When a change in business structure leads to a new Permanent Account Number (PAN)—for example, a transition from a partnership to a private limited company:

The existing GST registration becomes invalid.
Cancellation must be initiated under the old PAN, and
A new GST registration must be obtained under the new PAN.

4. Reduction in Turnover

For traditional businesses, GST registration is only required if:

Annual turnover exceeds ₹40 lakhs (₹20 lakhs in special category states for goods), or
₹20 lakhs for service providers.

If the turnover of an e-commerce seller falls below these thresholds, they may apply for cancellation.

Note: This exemption does not apply to sellers on e-commerce platforms—they are required to register regardless of turnover.

5. Cancellation by Tax Authorities

The GST department may initiate cancellation in cases of:

Prolonged non-filing of returns
Non-compliance with GST provisions
Fraudulent activity or misuse of GSTIN

In such cases:

A show-cause notice is issued to the taxpayer.
The business is given an opportunity to respond before the registration is cancelled.

Procedure for Cancelling GST Registration for E-Commerce Businesses

To cancel GST registration, e-commerce businesses must follow a structured process via the GST portal. Below are the key steps involved:

1. Submit Form GST REG-16

Log in to the official GST portal.
Navigate to Services > Registration > Application for Cancellation of Registration.
Fill and submit Form GST REG-16.
The form requires essential details such as:
- Reason for cancellation
- Desired effective date of cancellation
- Information about any outstanding tax liabilities or available input tax credit

2. Specify the Reason for Cancellation

Clearly mention the appropriate reason for requesting cancellation in the form—such as business closure, restructuring, change in legal entity, or turnover falling below the threshold.

3. Settle All Dues and File Returns

Ensure that all pending GST returns are filed up to the date of cancellation.
Settle any outstanding tax dues and reverse any unused input tax credit, if applicable.

4. Application Review by Tax Officer

After submission, the application is reviewed by the jurisdictional GST officer.
If all compliance requirements are met and documentation is in order, the officer will issue a formal Order of Cancellation using Form GST REG-19.

5. Effective Date of Cancellation

The registration stands cancelled from the date mentioned in the order issued by the tax officer

About the Author

Rohit

Rohit is an experienced legal writer who excels at translating complex legal concepts into clear, actionable advice. His writing equips entrepreneurs with the legal knowledge they need to confidently start, manage, and scale their businesses.

June 13, 2025