Under Section 24(ix) of the Central Goods and Services Tax (CGST) Act, 2017, anyone selling taxable goods through an e-commerce operator like Amazon, Flipkart, or Meesho is legally required to obtain GST registration—irrespective of annual turnover. However, recent statutory amendments now permit intra-state suppliers of goods with turnover under ₹40 Lakhs to sell online without GST, provided they obtain an Enrolment Number on the GST Portal.
Key Statutory Takeaways
- Section 24(ix) mandates compulsory GST registration for suppliers of goods through e-commerce operators, overriding the standard ₹40 Lakh threshold.
- The composition scheme is generally restricted for inter-state online suppliers, meaning normal GST tax rates and regular monthly return filings apply.
- E-commerce operators collect Tax Collected at Source (TCS) at 0.5% (0.25% CGST + 0.25% SGST or 1% IGST) on net sales under Section 52.
- Virtual office agreements and Principal Place of Business (PPOB) documentation are essential for registering warehouses (FBA / Flipkart Advantage) across multiple states.
Selling products through online marketplaces like Amazon, Flipkart, Meesho, and Myntra has democratized retail in India, but e-commerce sellers face stringent statutory compliance under the CGST Act. Our GST Advisory Desk manages multi-state GST registrations and TCS reconciliations for digital retailers nationwide.
1. Section 24(ix) Compulsory GST Requirement
Under standard provisions of Section 22 of the CGST Act, a supplier of goods is exempt from registration until annual aggregate turnover reaches ₹40 Lakhs. However, Section 24(ix) explicitly overrides Section 22 by mandating compulsory registration for 'persons who supply goods or services other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52'.
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2. Intra-State Exemption for Sellers under ₹40 Lakhs
Following GST Council recommendations via Notification No. 34/2023-Central Tax, small unregistered suppliers can sell goods online without GST provided they meet all the following statutory conditions:
- Aggregate turnover in the preceding financial year and current financial year does not exceed the threshold (₹40 Lakhs / ₹20 Lakhs).
- The seller makes supplies ONLY within the same state (intra-state supplies); no inter-state sales are permitted.
- The seller obtains an official Enrolment Number on the Common GST Portal based on PAN verification.
- The seller does not possess more than one Enrolment Number across any State or Union Territory.
3. APOB / PPOB Registration for Amazon FBA & Warehouses
When an e-commerce merchant places stock in an Amazon Fulfillment Centre (FBA) or Flipkart Advantage warehouse located in another state (e.g. Maharashtra, Haryana, Karnataka), tax law mandates obtaining a separate GST registration in that destination state. The warehouse is designated as an Additional Place of Business (APOB), requiring a local Principal Place of Business (PPOB) arrangement.
4. Marketplace TCS Collection under Section 52
Under Section 52 of the CGST Act, e-commerce operators collect Tax Collected at Source (TCS) at 0.5% (effective rate revised from 1%) on net taxable online sales. E-commerce sellers can claim credit for this TCS in their electronic cash ledger by filing monthly Form GSTR-8 returns.
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Consult E-Commerce GST AdvisorFrequently Asked Questions
Can I sell on Amazon across India without a GST number?
No. Selling across state borders (inter-state commerce) strictly requires mandatory GST registration from Rupee 1 under Section 24(i) and Section 24(ix) of the CGST Act.
What is an APOB in GST for e-commerce?
An Additional Place of Business (APOB) is any secondary warehouse or operational location where a business stores inventory. When shipping stock to Amazon FBA or Flipkart warehouses in different states, APOB addition is mandatory.
Can e-commerce sellers opt for the GST Composition Scheme?
Under recent amendments, intra-state e-commerce suppliers are permitted to opt for the composition scheme, but inter-state e-commerce sellers remain barred from the composition scheme.
How do I claim TCS deducted by Amazon or Flipkart?
TCS deducted by marketplaces is reflected in the 'TDS and TCS Credit Received' tab on the GST Portal. Accepting this monthly credit transfers funds into your Electronic Cash Ledger to pay GST liability.
This publication provides general educational information and analysis. It does not constitute formal tax or legal counsel. For specific case evaluation, consultation with an authorized tax professional is recommended.
