GST for E-commerce Sellers — TCS, Registration & Returns (2026)
E-commerce sellers on Amazon, Flipkart, Meesho, or their own website have no turnover threshold for GST registration — even a single sale requires registration. Marketplaces collect 1% TCS (Tax Collected at Source) on every payment made to sellers.
Quick Reference
Registration Threshold
No threshold (₹0)
TCS by Marketplace
1%
Marketplace Return
GSTR-8 by operator
Seller Returns
GSTR-1 + GSTR-3B
Multi-state Warehouses
Register in each state
GST Rate
18% (services) / varies (goods)
SAC 998599
Mandatory Registration — No Threshold for E-commerce
Unlike regular businesses (₹20 lakh threshold), e-commerce sellers must mandatorily register for GST from the first rupee of sales — even if selling one item. This applies to sellers on Amazon, Flipkart, Meesho, Myntra, Nykaa, and own websites.
TCS by Marketplace — 1%
E-commerce operators (Amazon, Flipkart) collect 1% TCS from seller payments — 0.5% CGST + 0.5% SGST (or 1% IGST for inter-state). The marketplace deposits this and files GSTR-8. Sellers can claim this TCS as ITC in GSTR-3B.
GST Rates for Products
The GST rate depends on the product being sold — clothing ≤₹1,000: 5%, clothing >₹1,000: 12%, electronics: 18%, books: exempt, footwear ≤₹1,000: 5%, footwear >₹1,000: 12%. Use the HSN finder to check specific product rates.
Returns and Compliance
E-commerce sellers must file GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual). Sales across multiple states require registration in each state from which goods are dispatched (warehouse location).
Own Website Sales
Selling through your own website still requires GST registration (no threshold exemption), collecting GST from customers, and filing regular returns. No TCS applies on direct sales.
🧮 Calculate GST on e-commerce sale
Free calculator — instant results, no signup required.
Yes. There is no turnover exemption for e-commerce sellers. You must register for GST regardless of sales volume when selling through a marketplace.
TCS is 1% deducted from each payment to the seller. This is not a cost — it is advance tax credited to your GST account. You claim it back in your monthly GSTR-3B filing.
You need registration in Delhi (your warehouse state). You charge IGST on inter-state sales and CGST+SGST on Delhi buyers. If you have warehouses in multiple states, register in each.
GST adjustments are made for returns — you issue a credit note and reduce your GSTR-1 output. The customer's ITC is also reversed proportionally.
