E-commerce GST is different
GST rules for e-commerce sellers are stricter than for ordinary businesses. If you sell through a marketplace, the usual turnover exemption generally does not apply, and there are special mechanisms like tax collected at source. Knowing these rules upfront avoids surprises.
Mandatory registration for marketplace sellers
If you sell through an e-commerce operator such as a large marketplace, GST registration is generally mandatory regardless of your turnover. The small-supplier exemption that applies to many offline businesses does not protect marketplace sellers. If, however, you sell only through your own website without a third-party operator, the regular turnover thresholds usually apply.
Tax Collected at Source (TCS)
E-commerce operators are required to collect a small percentage as TCS on the value of taxable supplies made through their platform. This amount is deducted from your payments and can generally be claimed as credit in your GST returns. It means you need to reconcile what the platform reports with your own records.
What sellers should set up
- GST registration before selling on marketplaces
- Accurate product classification and correct GST rates
- A system to reconcile platform TCS with your returns
- Clean records of sales, returns and settlements
- An Import Export Code if you plan to export
Don't overlook your own-website sales
Many sellers run both marketplace and direct-to-consumer channels. The rules can differ between them, so it helps to understand how each channel is treated and to keep your filings consistent across all of them.
How Aidwish helps
Aidwish sets up your GST for e-commerce, gets your classification and rates right, and handles ongoing returns and TCS reconciliation — so you can focus on selling across platforms.
Note: GST, tax and compliance rules change frequently through government notifications. Always verify the current rules or consult a professional before acting. Aidwish can help you stay updated and compliant.