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.
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.
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.
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.