The short answer depends on three things
Whether you need GST registration to sell on your own website comes down to three things: your turnover, whether you sell across state lines, and whether you also sell through any marketplace. Get those straight and the answer is usually clear. Here's how each one works.
How to check if you need GST registration, step by step
- Check your annual turnover against the ₹40 lakh goods (₹20 lakh services) threshold.
- Confirm whether you make any inter-state sales, which can require registration regardless of turnover.
- Check whether you sell through any marketplace, and read Notification 34/2023 for small sellers.
- If any of those apply, register for GST before you scale.
- Issue GST-correct invoices with HSN codes from your first order.
The turnover threshold
If you sell only through your own website, you can operate without GST registration until your turnover crosses ₹40 lakh for goods in most states, or ₹20 lakh for services, in a year. Below that, registration is optional. This is the freedom that marketplace sellers historically didn't get.
Inter-state sales change the picture
Here's a catch many miss. If you make inter-state supplies - selling to a buyer in another state - the rules can require registration regardless of turnover. Check your specific case carefully. Shipping across state lines is not automatically the same as staying local, and the tax treatment differs.
The moment you touch a marketplace
Sell through Amazon, Flipkart, or Meesho and different rules apply. Historically, marketplace selling meant mandatory registration whatever your turnover - though since 1 October 2023, Notification 34/2023 has eased this for small sellers of goods who stay within their own state. If you use any marketplace, read that notification before you assume you're exempt.
Why register voluntarily anyway
Even under the threshold, some sellers register on purpose. It lets you claim input-tax credit on your costs. It looks more credible to buyers and suppliers. And it saves a scramble later when you cross the threshold mid-year. Registration has real upsides, not just obligations.
Which turnover limit applies to you
| What you sell, and where | You must register above |
|---|---|
| Goods only, in most states | ₹40 lakh a year |
| Goods only, in one of ten listed states | ₹20 lakh a year |
| Services, or goods and services | ₹20 lakh a year |
| Services or mixed, in Manipur, Mizoram, Nagaland or Tripura | ₹10 lakh a year |
| Goods sent to a buyer in another state | Any turnover, handicraft goods aside |
Why your own website is not a marketplace
The small-seller waiver does not cover your own website. That rule is Notification 34/2023-Central Tax, in force since 1 October 2023. It lets small sellers of goods sell through an e-commerce operator without GST registration. Here, that means a marketplace that must collect tax at source, or TCS, on your sales. Your own site is not one. The GST Council's flyer says TCS does not apply when you sell your own product on your own website. So for your website, the normal section 22 limits in the table above are the ones that count.
Selling to other states from your site
This is the rule that catches most website sellers. Your site can take an order from any state. But once you ship goods to a buyer in another state, you make an inter-state supply. The GST Council's flyer lists inter-state suppliers among those who must register, whatever their turnover. There are a few exceptions, such as some handicraft goods and small service sellers. So if you plan to ship across India, register before your first order from another state. If you want to wait, deliver only inside your own state for now.
Own website plus a marketplace
Many sellers run both, and this is where it gets tricky. The marketplace waiver has strict terms. You must not make any inter-state supply of goods at all - not on the marketplace, and not on your website. You can sell through marketplaces in one state only. You need a PAN and an enrolment number before your first marketplace sale. And the limit is on your aggregate turnover, not just your marketplace sales. So one parcel from your site to another state breaks the waiver for your marketplace sales too.
You can undo an early registration
Worried that registering early locks you in? It doesn't. You can register by choice while you are below the limit. The rules once stopped you from cancelling that kind of registration for a year. That changed in January 2018, and you can now cancel it at any time. To cancel, you apply on the portal within 30 days of the reason to cancel. You list the stock you hold and pay any tax you owe. So an early registration is a choice you can undo, not a trap.
What changes once you register
Registration brings new jobs, but also real benefits. You can legally collect GST from your buyers. You can claim input tax credit on the GST you pay your suppliers. That credit also flows on to business buyers who order from you. In return, you add GST to your prices, issue a proper tax invoice for each order, and file returns on time. Plan for it before the day you register. Check your prices, set up invoices with HSN codes and keep your purchase bills in order.
What to do when you cross the limit
- Check your turnover each month against your limit in the table above.
- Apply on the GST portal within 30 days of the date you must register.
- Keep your PAN handy, since your GSTIN is built on it.
- Register in each state you supply from.
- Show your GSTIN on the name board at your place of business.
- Start charging GST and issuing tax invoices on your website orders.
The cost of getting it wrong
Selling when you should be registered means penalties and back-taxes. Registering and then not filing means notices. Neither is worth the risk. If you're near a threshold or selling across states, a short chat with a CA is cheap insurance against an expensive mistake.
Keep it simple as you start
If you're small, local, and on your own website, you likely have room before registration is forced. Build clean records from day one so the switch is painless when it comes. When you do register, The Storemate has GST-correct invoicing ready to switch on - a setting, not a rebuild. This is a starting point, not tax advice; confirm your own case with a professional.