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GST Registration for Online Business in 2025

In today’s digital age, online businesses are booming, and with this growth comes the responsibility of staying compliant with government regulations. One key requirement for online businesses in India is GST registration.

So if you’re an online seller or planning to launch an e commerce business, understanding the process and importance of GST registration is vital. Whether you’re selling on platforms like Amazon or Flipkart, or running your own e-store, GST compliance ensures legal credibility, seamless operations, and financial benefits. In this detailed guide, we’ll cover everything you need to know about GST registration for online businesses, why it’s mandatory, and how Charteredhelp in Sector 18 Noida can assist you in simplifying the process.

What is GST, and Why Does It Matter for Online Businesses?

The Goods and Services Tax (GST) is a unified tax regime introduced in India to replace multiple indirect taxes like VAT, excise duty, and service tax. For online businesses, GST is not just a regulatory requirement but also an enabler for transparency and market credibility.

Importance of GST for Online Sellers?

Mandatory Compliance: GST registration is legally required for businesses selling goods or services online, irrespective of their annual turnover.
Interstate Sales: GST is necessary for selling products across state lines, a common feature of e-commerce businesses.
Input Tax Credit (ITC): Registered businesses can claim credit on GST paid for raw materials, services, or inventory purchases.
Enhanced Trust: A GST-registered business signals professionalism and compliance, which attracts customers and partners.

When is GST Registration Mandatory for Online Businesses?

GST registration becomes mandatory for online businesses under the following conditions:

Selling through E-commerce Platforms: Platforms like Amazon, Flipkart, or Meesho require sellers to have a valid GSTIN.
Turnover Thresholds: For most states, a business with an annual turnover exceeding ₹20 lakhs (₹10 lakhs in special category states) must register under GST.
Interstate Supplies: Even with a lower turnover, any interstate sale requires GST registration.
Special Cases: Businesses providing taxable services or reverse charge mechanism (RCM) also need GST compliance.

Documents Required for GST Registration for Online Business

Proprietor’s Documents

Photo
PAN
Aadhar Card
Mobile No & Email Id

Business Place Documents

Latest Electricity Bill of Business Address.
Rent Agreement of Business Address, If Rented
No Objection Certificate (NOC)

Other Information

Proposed Business Name
List of top 5 Business Products/Services

Step-by-Step GST Registration Process for E-commerce Sellers

1. Access the GST Portal

Visit the “https://www.gst.gov.in/”to begin the registration process.

2. Create a Temporary Reference Number (TRN)

Provide your PAN and contact details to generate a TRN, which helps you start your application.

3. Complete the Application Form

Business details (legal name, PAN, and type of business)
Principal business address
Nature of goods/services offered

4. Upload Required Documents

Prepare and upload the following:

PAN card and Aadhaar card of the proprietor/partners/directors
Proof of business address (e.g., rental agreement, utility bill)
Bank details (canceled cheque, passbook, or bank statement)
Business registration certificates or partnership deed (if applicable)

5. Verification Process

After submission, an officer verifies your application. A physical verification may be required in some cases.

6. Receive GSTIN

Upon successful approval, you’ll receive a unique GST Identification Number (GSTIN). This number is mandatory for invoicing and tax filing.

GST Registration for Amazon Seller and E-commerce Sellers:

If you’re an Amazon seller or selling through platforms like Flipkart or Myntra, GST registration is a must. These platforms deduct TCS (Tax Collected at Source) on each sale, and you can claim this TCS only if you have a valid GST number. But if you’re an E-commerce sellers may need to provide additional details during registration, such as agreements with platforms like Amazon or Flipkart. Ensure you check the specific requirements with your platform.

Benefits of GST Registration for Amazon Sellers:

Access to more customers: Platforms prefer GST-registered sellers for a better customer experience.
Ease of claiming input tax credit: Save on taxes paid for raw materials or services.
Compliance with platform policies: Most e-commerce sites mandate GST registration.

Benefits of GST Registration for Online Business

Legal recognition of your business.
Claiming input tax credit to reduce overall tax liability.
Better reputation among customers and partners.
Avoid hefty penalties for non-compliance.

How to Calculate Amazon selling fees?

Amazon charges various selling fees, including:

Referral Fee: A percentage of the total price of the product (including shipping), which varies by product category.
Fulfillment Fees: If you’re using Amazon’s FBA (Fulfilled by Amazon) services, there are storage and shipping fees.
Closing Fees: A flat fee for certain categories, like media products. To calculate your fees, check Amazon’s fee schedule based on your product category, and include any additional costs related to shipping, packaging, and commissions.

For each product sold on Amazon, a referral fee is charged, which varies depending on the category of the product. This fee is calculated as a percentage of the total selling price of the product.

How to calculate Referral Fees?

Total Referral Fees = Selling Price of the Product x Referral Fee Percentage

Example

Let’s say you’re selling a pair of shoes for ₹1000, and the referral fee for the shoes category is 12%.
Referral Fees Calculation:

Referral Fees = ₹1000 x 12% = ₹120

So, for selling the shoes at ₹1000, you would pay ₹120 as the referral fee to Amazon.

How Charteredhelp in Sector 18 Noida Simplifies GST Registration

At Charteredhelp, we specialize in assisting e-commerce sellers and online businesses with GST compliance. Here’s how we make the process hassle-free:

Expert Guidance: From choosing the right GST type to filing your application, our team is here to guide you.
Document Handling: We ensure all your documents are complete and error-free.
Quick Approvals: Our streamlined approach reduces processing time.
Post-Registration Support: We also help with GST return filing, amendments, and compliance management.

With our Sector 18 Noida office, you can access personalized consultations tailored to your business needs.

GST Rules for e-commerce business.

If you run an e-commerce business, there are some special GST rules you need to follow because your business operates in the digital space. Two key aspects to focus on are Tax Collected at Source (TCS) and the requirement to display the GSTIN on invoices.

1. Tax Collected at Source (TCS)

TCS is like an extra tax collection step for e-commerce. Platforms like Amazon or Flipkart must collect 1% TCS on the total taxable sales happening through their website or app.

Here’s how it works:

For every transaction on the platform, the e-commerce company collects a small percentage as TCS.
This collected amount is then deposited with the government.

The goal is to ensure tax compliance in the fast-growing online marketplace and prevent tax evasion.
Good news: TCS is not an extra tax for sellers. The amount collected is adjusted against the seller’s final GST bill. Think of it as a pre-paid GST that reduces your future tax liability.

2. Displaying GSTIN on Invoices

Every time a sale is made on an e-commerce platform, an invoice is created. This invoice must clearly show the GSTIN (Goods and Services Tax Identification Number) of the platform.

Why is this important?

The GSTIN is proof that the platform is GST-registered.
It helps the government keep track of transactions for proper tax collection.

In simple terms, displaying the GSTIN ensures transparency and compliance with GST laws.

By following these two rules—TCS collection and showing GSTIN on invoices—e-commerce businesses can easily stay GST-compliant and avoid any legal hassles.

Do I need GST registration if I sell on my own website?

Yes, if your turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), you need GST registration even if you are selling on your own website. GST registration is required for businesses conducting inter-state transactions or selling goods and services online.
However, if your turnover is below this threshold, GST registration is optional, but it may still be beneficial for claiming input tax credits and gaining customer trust.

Conclusion

GST registration is not just a regulatory requirement for online businesses—it’s a growth catalyst. From enabling interstate commerce to improving tax efficiency, GST opens new opportunities for e-commerce sellers.

Looking for assistance? Charteredhelp, based in Sector 18 Noida, offers expert GST registration services tailored to your business needs. Whether you’re an Amazon seller or an independent entrepreneur, we’re here to make GST compliance easy and hassle-free.

FAQ for GST Registration for Online Business

Is GST required for online selling?

Yes, GST is required for online selling, particularly if you sell goods or services on e-commerce platforms like Amazon, Flipkart, or Myntra. GST registration is mandatory for all online businesses that exceed the turnover limit or engage in inter-state transactions.

What is the GST limit for small traders?

For small traders, GST registration is not mandatory if the turnover is below ₹20 lakhs (₹10 lakhs for special category states). However, if you plan to sell through e-commerce platforms like Amazon or Flipkart, GST registration is still required, even if your turnover is below this threshold.

What is the GST limit for traders?

The GST limit for traders is ₹20 lakhs for general category states and ₹10 lakhs for special category states. This means if your business turnover exceeds these limits, you are required to register for GST. However, e-commerce sellers must register for GST regardless of their turnover, as platforms require a valid GST number to list products.ontent

What documents do I need for GST registration as an Amazon seller?

To register for GST as an Amazon seller, you will need the following documents:

PAN Card of the business owner.
Aadhaar Card of the proprietor/partners/directors.
Business Proof: Partnership deed, Certificate of Incorporation, or other business registration documents.
Address Proof: Utility bill, rent agreement, or property tax receipt for the business premises.
Bank Account Details: A canceled cheque or bank statement.
Photograph: Passport-sized photo of the applicant. These documents help ensure the registration process is smooth and hassle-free.