Selling online — on a marketplace or your own website — comes with specific tax rules, including mandatory GST registration and TCS deducted by the platform.

This guide explains compliance for e-commerce sellers.

Registrations you need

  • GST registration (mandatory for marketplace sellers regardless of turnover)
  • Business structure and current account
  • Udyam registration for MSME benefits

Taxes and returns

  • GST on all sales, with the marketplace deducting TCS at a notified rate
  • Income tax on profits; TDS under 194-O may apply
  • Reconciliation of marketplace TCS in GST returns

Practical tips

  • Register for GST before listing on a marketplace
  • Reconcile platform settlement reports with GST returns
  • Track TCS credit and claim it in your returns

Frequently asked questions

Is GST mandatory to sell on Amazon or Flipkart?

Yes. Sellers supplying through e-commerce marketplaces must register for GST irrespective of turnover in most cases.

What is TCS for online sellers?

Marketplaces collect tax at source on your sales and deposit it; you claim it as credit in your GST returns.