Do you even need GST registration?
It depends on where you sell. Sell only through your own website, and if your turnover is below ₹40 lakh for goods (₹20 lakh for services), you can operate without GST registration. The moment you sell through a marketplace, that comfort disappears.
How to apply for GST registration, step by step
- Go to gst.gov.in, choose Register, and fill in Part A of Form GST REG-01.
- Complete Part B, the full application for a normal taxpayer.
- Upload a photo of each owner or partner as a JPG file of up to 100 KB.
- Upload proof of your main place of business - if you rent, a rent or lease agreement plus a property tax receipt, municipal khata copy, or electricity bill.
- Complete Aadhaar authentication when the portal asks for it.
- Track your application status on the portal, then download your registration certificate once it is approved.
- Add your new GSTIN to your store settings, so it prints on every invoice from then on.
Get your papers ready before you start
Most delays come from a missing file, not a hard question. The GST portal has a documents page that lists what each type of business must upload. Read it first, and scan everything before you open the form. Keep each photo as a JPG of up to 100 KB. If someone else signs for the business, you add a letter of authorisation, also up to 100 KB. Working from a family home? The portal accepts a consent letter from the owner, plus a property tax receipt, khata copy, or electricity bill. Name each file plainly, like "rent-agreement" or "owner-photo", so you upload the right one to the right box. With the files ready, the form takes one sitting, not three.
The marketplace rule that trips everyone up
Sell on Amazon, Flipkart, Meesho, Myntra, or any online marketplace, and GST registration has long been mandatory - whatever your turnover. A 2025 update eased this for small sellers who stay within their own state. But for most marketplace sellers, the rule still holds, and the threshold exemption does not apply. It's the most common mistake new sellers make. They start selling, then discover the rule only when their payouts are held.
TCS, without the jargon
Marketplaces collect Tax Collected at Source: 1% of your net taxable sales (0.5% CGST + 0.5% SGST). They deposit it against your GSTIN. It is not an extra tax. You claim it back as a credit and adjust it against what you owe. The catch: you can only claim it if you are registered and filing. That's another reason marketplace selling and GST go hand in hand.
Claim the TCS a marketplace collects
The TCS a marketplace holds back is your money, but you have to claim it. The GST portal has its own step for filing the TCS and TDS credit you have received. Make it part of your monthly routine. Check your payout report from each marketplace, then match it against the credit on the portal. If a number looks wrong, raise it with the marketplace early. Small gaps are easy to fix in the same month and hard to fix a year later. Keep the payout reports in the same monthly folder as your invoices.
What changed recently
A recent update removed the old ₹1,000 floor for input-tax refunds on exports. Small sellers can now reclaim every rupee of GST paid on packaging, raw materials, and shipping - not just amounts above a cutoff. For a small brand shipping abroad, that's real money that used to leak away.
If you hold stock in multiple states
Storing stock in a third-party or fulfilment warehouse has GST consequences. That warehouse must be listed as an Additional Place of Business on your certificate. If it is in another state, you usually need a separate registration there. Plan your warehouse locations before you sign a logistics contract.
Filing rhythm and the composition trap
E-commerce sellers file regular monthly returns, whatever the turnover. You are also excluded from the Composition Scheme. So the simple quarterly option many small businesses use is off the table. Set a fixed monthly date and keep invoices clean, and filing becomes routine instead of a scramble.
A quiet month still needs a return
No sales this month? You still file. A nil return tells the tax office you had nothing to report for that period. The GST portal lets you file a nil GSTR-1 and a nil GSTR-3B online, or even by SMS from your phone. It is quick, so there is no reason to skip it. Put the date in your calendar like any other bill. A clean record of filed months is what keeps your GSTIN in good standing when you are ready to grow.
Paying the GST you owe
You pay GST through a challan, a payment form you create on the GST portal. You can make one before or after you log in. Then pay it online by net banking, a credit or debit card, or NEFT and RTGS from your bank. You can also pay over the counter at an authorised bank. Once you pay, you can track the status on the same portal. Pay from your business bank account, not a personal one. Then every GST payment sits in one statement. Save every challan receipt with that month's invoices, so your records tell one clear story.
Check GSTR-2B before you claim input credit
Input tax credit is the GST you paid on your own business costs, like packaging and courier bills. You set it against the GST you collect from buyers, so you only pay the difference. Before you claim it, open GSTR-2B on the portal. It is an auto-drafted statement of the credit your suppliers have reported for you. Say you paid ₹1,800 in GST on a packaging order. If that bill shows up in GSTR-2B, you can set the ₹1,800 against the tax you collected. If a bill is missing there, ask that supplier to check their filing. Claim what the statement shows, and your books stay easy to defend.
Let your store handle the invoicing
Most GST pain comes from invoices that don't add up. Wrong tax rates. Missing GSTINs. HSN codes left blank. The Storemate applies GST at checkout and generates compliant invoices automatically. The tax math is right on every order, not something you reconcile by hand at month-end. This guide is a starting point, not tax advice - for anything unusual, talk to a qualified professional.