GST for Amazon Sellers in India – Complete Guide 2026
Everything about GST registration, TCS compliance, return filing, input tax credit, and tax obligations for online marketplace sellers on Amazon India. Expert guidance from DisyTax.
Mandatory GST for All Amazon Sellers
No turnover threshold exemption. GST registration is compulsory under Section 24 of the CGST Act for e-commerce sales.
📋 Quick Summary – GST for Amazon Sellers
- GST Registration: Mandatory for ALL Amazon sellers, no turnover exemption applies.
- Composition Scheme: NOT available for e-commerce sellers on Amazon.
- TCS Rate: Amazon deducts 1% TCS (0.5% CGST + 0.5% SGST) on net taxable supplies.
- Returns: File GSTR-1 and GSTR-3B monthly; GSTR-9 annually.
- Key Compliance: Reconcile Amazon settlement reports with GST returns every month.
- Penalty Risk: Non-compliance can lead to account suspension and GST cancellation.
Understanding GST for Amazon Sellers – An Expert Overview
Selling on Amazon India has opened doors for millions of entrepreneurs, small businesses, and established brands. However, GST compliance for Amazon sellers is one of the most misunderstood aspects of online selling. Many new sellers assume that GST registration is only required when their turnover crosses the threshold limit of Rs. 40 lakhs. This is not true for e-commerce sellers.
Under Section 24 of the CGST Act, 2017, every person making supplies through an electronic commerce operator (like Amazon) is required to obtain mandatory GST registration irrespective of their aggregate turnover. This means even if you sell just one product worth Rs. 500 on Amazon, you need a valid GSTIN.
At DisyTax, we have helped over 5,000+ Amazon sellers across India get GST-compliant. From GST registration for online sellers to monthly GST return filing for Amazon sellers and TCS reconciliation, our team ensures you never face account suspension due to tax non-compliance. Understanding GST basic terms is the first step toward hassle-free selling on Amazon.
Is GST Mandatory for Amazon Sellers? – Eligibility & Requirements
The short answer is yes – GST registration is mandatory for all Amazon sellers. Unlike traditional offline businesses that enjoy a GST registration threshold limit of Rs. 40 lakhs (Rs. 20 lakhs for special category states), online marketplace sellers are explicitly excluded from this exemption. Let us break down the eligibility criteria:
Who Needs GST Registration to Sell on Amazon?
- All individuals and businesses selling goods on Amazon.in – mandatory registration regardless of turnover.
- Amazon FBA sellers – those using Fulfillment by Amazon must register, plus may need multi-state registration if inventory is stored across states.
- Amazon Global Selling sellers exporting from India – GST registration is mandatory along with IEC registration and LUT/Bond.
- Brands and manufacturers listing products on Amazon – full GST compliance required.
- Small-scale artisans and home-based sellers – no exemption; GST registration is still compulsory.
Can Amazon Sellers Opt for the Composition Scheme?
No. Amazon sellers cannot opt for the GST Composition Scheme. Section 10 of the CGST Act specifically excludes persons making supplies through e-commerce platforms from availing the composition levy. Amazon sellers must register under the regular GST scheme and comply with all monthly filing obligations.
GST Registration Process for Amazon Sellers – Step-by-Step Guide
The Amazon seller GST registration process is straightforward when you know the correct steps. Here is the complete walkthrough based on our experience helping thousands of online sellers:
- Step 1: Prepare Required Documents – Gather PAN card, Aadhaar card, business address proof (electricity bill or rent agreement with NOC), bank account details (cancelled cheque or bank statement), passport-size photo, and Amazon seller agreement or registration confirmation email from Amazon.
- Step 2: Visit the GST Portal – Go to gst.gov.in and click on "Services > Registration > New Registration." Select "Taxpayer" as the type of registration.
- Step 3: Fill Part-A of GST REG-01 – Enter your PAN, mobile number, and email address. Verify both via OTP. You will receive a Temporary Reference Number (TRN).
- Step 4: Complete Part-B with Business Details – Log in using the TRN and fill in all business details: legal name, trade name (your Amazon store name), principal place of business, additional places of business (if any), bank account details, and HSN codes of goods you plan to sell.
- Step 5: Upload Digital Documents – Upload scanned copies of all documents required for GST registration. Ensure files are clear and within the prescribed size limits.
- Step 6: Submit Application & Receive ARN – After submitting, you will receive an Application Reference Number (ARN). The GST officer will verify your application within 7 working days.
- Step 7: Receive GSTIN & Registration Certificate – Upon approval, you will receive your GST Identification Number (GSTIN) and can download the registration certificate (Form GST REG-06) from the portal.
- Step 8: Update GSTIN on Amazon Seller Central – Log in to Amazon Seller Central, navigate to "Settings > Tax Information," and enter your GSTIN. Amazon will verify it before you can start selling.
Need help with online GST registration? DisyTax offers end-to-end assistance with 7-day GSTIN delivery. Contact us on WhatsApp to get started.
📄 Documents Required for GST Registration – Amazon Sellers Checklist
Having the right documents ready speeds up your GST registration for Amazon selling. Here is the definitive checklist:
PAN Card
PAN of the individual or business entity. Mandatory for GST registration.
Aadhaar Card
Aadhaar of the applicant for identity verification and OTP authentication.
Address Proof
Electricity bill, rent agreement with NOC, or property tax receipt of principal place of business.
Bank Details
Cancelled cheque, bank passbook front page, or bank statement with IFSC and account number.
Photograph
Passport-size photograph of the applicant/proprietor/partners/directors.
Amazon Seller Proof
Amazon seller registration confirmation, seller agreement, or screenshot of seller dashboard.
For a complete list, refer to our guide on documents required for GST registration.
Benefits of GST Compliance for Amazon Sellers
While GST compliance may seem like an additional burden, there are significant benefits of GST for Amazon sellers:
Input Tax Credit (ITC)
Claim input tax credit on purchases, packaging, shipping, and Amazon fees (18% GST on seller fees is eligible for ITC).
Amazon Account Security
GST-compliant sellers avoid account suspension. Amazon strictly enforces GST compliance for all sellers.
Pan-India Selling
With GST registration, you can sell across all states. Interstate sales are fully compliant under IGST.
Business Credibility
GSTIN adds legitimacy to your Amazon store. Buyers and wholesale suppliers trust GST-registered sellers.
Easier Business Loans
GST returns serve as proof of business turnover, making it easier to secure loans and credit facilities.
Amazon FBA Ready
Full GST compliance enables you to use Amazon FBA services including multi-state warehousing.
GST Rules & Legal Framework for Amazon Sellers
Understanding the legal provisions under GST for online marketplace sellers is crucial. Here are the key legal sections every Amazon seller must know:
Section 24 – Mandatory Registration
Section 24 of the CGST Act overrides the threshold exemption and mandates GST registration for all persons making supplies through e-commerce platforms. This is the foundational provision that makes GST mandatory for Amazon sellers regardless of turnover.
Section 52 – TCS Provisions
Section 52 requires Amazon (as the e-commerce operator) to collect TCS at 1% (0.5% CGST + 0.5% SGST) on the net value of taxable supplies made through its platform. Amazon files GSTR-8 to report this TCS. Sellers can claim TCS credit in their electronic cash ledger and utilize it for GST payment.
Section 10 – Composition Scheme Exclusion
Section 10 explicitly excludes e-commerce sellers from the GST Composition Scheme. This means Amazon sellers must file monthly returns under the regular scheme.
Place of Supply Rules
For interstate sales through Amazon, place of supply of goods rules determine whether IGST or CGST+SGST applies. Amazon's fulfillment network may trigger multi-state compliance obligations, especially for FBA sellers.
E-Way Bill Requirements
Amazon sellers must generate e-way bills for consignments exceeding Rs. 50,000 in value. Amazon's own logistics (ATS) may handle this, but sellers using third-party couriers must ensure e-way bill compliance.
Stay updated with the latest GST updates and GST news circulars that may affect Amazon seller compliance.
GST Comparison – Amazon Sellers vs Regular Offline Sellers
Understanding the key differences in GST compliance for Amazon sellers versus regular offline businesses helps clarify why specialized tax guidance is essential:
| Parameter | Amazon / E-Commerce Seller | Regular Offline Seller |
|---|---|---|
| GST Registration Threshold | No threshold – mandatory at Rs. 0 turnover | Rs. 40 lakhs (goods) / Rs. 20 lakhs (services) |
| Composition Scheme | Not allowed | Available up to Rs. 1.5 crore turnover |
| TCS Applicability | 1% TCS collected by Amazon on taxable supplies | No TCS (except for specified goods) |
| Return Filing Frequency | Monthly – GSTR-1 & GSTR-3B | Monthly or quarterly based on turnover |
| ITC on Platform Fees | Yes – 18% GST on Amazon fees is creditable | Not applicable |
| Multi-State Registration | Required if FBA inventory in multiple states | Required only if place of business in multiple states |
| Invoice Requirements | Must comply with GST invoice format + Amazon's requirements | Standard GST invoice rules |
Common GST Mistakes Amazon Sellers Make & How to Avoid Them
Over years of handling Amazon seller GST compliance, we have identified recurring mistakes. Here they are with practical solutions:
❌ Mistake 1: Assuming GST is Not Required Below Rs. 40 Lakhs
Many new sellers believe the threshold exemption applies to them. ✅ Solution: GST registration is mandatory for ALL Amazon sellers from day one. Apply before you list your first product.
❌ Mistake 2: Not Reconciling Amazon Settlement Reports with GST Returns
Sellers often file GSTR-1 based on estimates rather than actual Amazon settlement data. ✅ Solution: Download Amazon's monthly settlement report, reconcile it with your sales register, and match TCS deductions before filing GSTR-1 and GSTR-3B.
❌ Mistake 3: Not Claiming ITC on Amazon Seller Fees
Amazon charges various fees (referral fee, closing fee, shipping fee, FBA fee) with 18% GST. Many sellers fail to claim ITC on these. ✅ Solution: Track all Amazon fee invoices in your input tax credit register and claim ITC in GSTR-3B. Ensure you meet all conditions to claim ITC.
❌ Mistake 4: Using Wrong HSN Codes
Incorrect HSN classification leads to wrong GST rates and potential notices. ✅ Solution: Use our GST HSN rate finder to determine the correct HSN code and GST rate for each product before listing on Amazon.
❌ Mistake 5: Ignoring Multi-State Registration for FBA
FBA sellers storing inventory in Amazon warehouses across states often fail to obtain state-wise GST registration. ✅ Solution: If Amazon stores your goods in Maharashtra, Karnataka, and Delhi warehouses, you need GST registration in each of these states. Consult our experts for multi-state GST compliance.
⚠️ Penalties & Risks of GST Non-Compliance for Amazon Sellers
Non-compliance with Amazon seller GST rules carries serious consequences. Here is what is at stake:
- Late Fee for Delayed Returns: Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) per return, capped at Rs. 10,000 per return. For nil returns, the late fee is Rs. 20 per day. Refer to our guide on GST late fees and interest.
- Interest on Tax Dues: 18% per annum on outstanding tax liability from the due date until payment.
- ITC Blocking: Non-filing of returns can lead to blocked input tax credit, preventing you from claiming ITC on purchases and Amazon fees.
- GST Registration Cancellation: Persistent non-compliance may result in GST registration cancellation, forcing you to stop selling on Amazon entirely.
- Amazon Account Suspension: Amazon actively monitors GST compliance. Non-compliant sellers risk account deactivation and delisting.
- Prosecution: In severe cases of tax evasion, GST prosecution and penalty procedures may be initiated, leading to fines and imprisonment.
Industry-Specific GST Insights – Beyond Basic Amazon Selling
GST for Amazon FBA Sellers
Amazon FBA sellers face additional complexities. When goods are stored in Amazon fulfillment centers across states, stock transfers between warehouses attract IGST even though no sale has occurred. FBA sellers must also account for Amazon's warehousing fees, which carry 18% GST – eligible for ITC. Multi-state GST registration is mandatory if inventory is held in multiple states, and each state's returns must be filed separately. Understanding place of supply rules becomes critical for FBA operations.
GST for Amazon Global Selling (Exports)
Amazon sellers exporting from India under Amazon Global Selling enjoy zero-rated supplies status. You can export under LUT (Letter of Undertaking) or Bond without paying IGST, or pay IGST and claim a refund. GST on exports requires careful documentation including shipping bills and export invoices. Timely GST refund filing is essential for maintaining cash flow.
GST for Amazon Resellers & Aggregators
Businesses that purchase from multiple brands and resell on Amazon must carefully manage RCM (Reverse Charge Mechanism) if they source from unregistered suppliers. Proper valuation of supply and maintaining accounts and records under GST is vital for audit readiness. Check our guide on GST terms and phrases to familiarize yourself with compliance terminology.
Frequently Asked Questions – GST for Amazon Sellers
Is GST registration mandatory for Amazon sellers in India?
Yes, GST registration is mandatory for all Amazon sellers in India irrespective of turnover. Unlike regular businesses that enjoy a threshold exemption of Rs. 40 lakhs (Rs. 20 lakhs for special category states), online marketplace sellers must obtain GST registration before commencing sales on Amazon. This is because selling through an e-commerce platform falls under the ambit of mandatory registration as per Section 24 of the CGST Act, 2017. Amazon also mandates sellers to furnish their GSTIN during the seller onboarding process.
What is TCS under GST for Amazon sellers and how does it work?
TCS (Tax Collected at Source) is a provision under Section 52 of the CGST Act where Amazon collects 0.5% CGST and 0.5% SGST (total 1%) on the net taxable value of goods supplied through its platform. For interstate sales, 1% IGST is collected. This TCS amount is deducted from the seller's settlement and deposited with the government. Amazon files GSTR-8 to report TCS, and sellers can claim this TCS as a credit in their electronic cash ledger when filing GSTR-3B. The TCS amount appears in the seller's GSTR-2A for reconciliation.
Can Amazon sellers opt for the GST Composition Scheme?
No, Amazon sellers cannot opt for the GST Composition Scheme. As per Section 10 of the CGST Act, sellers who supply goods through e-commerce platforms are specifically excluded from the Composition Scheme. Amazon sellers must register under the regular GST scheme and file monthly returns (GSTR-1 and GSTR-3B). This is a critical compliance point that many new online sellers overlook. Even if your total turnover is below Rs. 1.5 crore, the composition scheme is not an option for e-commerce sales.
What documents are required for GST registration for Amazon sellers?
Amazon sellers need: PAN card of the business/individual, Aadhaar card, proof of business address (electricity bill/rent agreement), bank account details (cancelled cheque/passbook), passport-size photograph, mobile number and email for OTP verification, Amazon seller agreement or screen showing seller registration, and proof of principal place of business. For companies, additional documents like Certificate of Incorporation and Board Resolution are needed. See our complete documents checklist.
How do Amazon sellers file GST returns correctly?
Amazon sellers must file GSTR-1 (monthly/quarterly) reporting all outward supplies made through Amazon, and GSTR-3B (monthly) for summary return and tax payment. They must also reconcile sales data from Amazon's settlement reports with their GST returns. TCS collected by Amazon appears in GSTR-2A and must be claimed as credit. Annual return GSTR-9 is also mandatory. Timely filing is crucial to avoid late fees and interest. Consider our GST return filing services for hassle-free compliance.
What GST rate applies to products sold on Amazon?
The GST rate on products sold through Amazon depends on the HSN classification of the product, not the platform. Common rates are 0% (essential goods), 5% (packaged food items, footwear below Rs. 1000), 12% (butter, cheese, mobile phones), 18% (most consumer goods, electronics), and 28% (luxury goods, automobiles, aerated drinks). Sellers must determine the correct HSN code and applicable rate for each product. Use our GST HSN rate finder to look up the correct rate for your products.
What happens if an Amazon seller does not file GST returns on time?
Late filing of GST returns attracts a late fee of Rs. 50 per day (Rs. 25 CGST + Rs. 25 SGST) for each return, capped at Rs. 10,000 per return. Additionally, interest at 18% per annum is charged on any outstanding tax liability. Repeated non-compliance can lead to GST registration cancellation, blocking of input tax credit, and even suspension of the Amazon seller account. Amazon may also delist sellers who are non-compliant with GST regulations. Learn more about GST late fees.
Can I sell on Amazon without GST registration if my turnover is below Rs. 40 lakhs?
No, you cannot sell on Amazon without GST registration even if your turnover is below Rs. 40 lakhs (or Rs. 20 lakhs for special category states). The threshold exemption available to regular businesses does not apply to e-commerce sellers. Section 24 of the CGST Act mandates compulsory GST registration for all persons making supplies through e-commerce platforms. Amazon's seller policies also require a valid GSTIN for onboarding and continued selling privileges. There is no exception for low-volume or new sellers.
How does GST impact Amazon FBA sellers specifically?
Amazon FBA sellers face additional GST considerations. When goods are stored in Amazon warehouses across different states, the seller may need GST registration in each state where inventory is held. Stock transfers between warehouses in different states attract IGST, though input tax credit can be claimed. FBA sellers must also account for Amazon's warehousing, packaging, and shipping fees which attract 18% GST. These fees are eligible for ITC. Multi-state compliance adds complexity but is manageable with proper guidance from tax professionals like DisyTax.
What is the GST registration process timeline for new Amazon sellers?
The GST registration process for Amazon sellers typically takes 7 working days from application submission to GSTIN issuance, provided all documents are correct and complete. The steps involve: (1) Filing Form GST REG-01 on the GST portal, (2) OTP verification, (3) Document upload, (4) Verification by GST officer within 3-7 working days, (5) GSTIN issuance. With DisyTax's assisted online GST registration service, we ensure error-free applications and faster processing. Contact us at 7065281345 for immediate assistance.
📚 Explore More GST Resources for E-Commerce Sellers
Deepen your understanding of GST compliance with these expert resources from DisyTax: