GST is not optional for Amazon India sellers — it is a legal requirement. But beyond the registration, there are ongoing obligations, filing schedules, and specific implications for FBA sellers that most beginners do not fully understand. This guide covers all of it.
Why GST is Mandatory for Amazon India Sellers
Amazon India is an e-commerce operator under GST law. Amazon collects GST on your behalf and remits it to the government. For this system to work, you must have a valid GSTIN. Amazon India does not allow seller accounts without GST registration. Additionally, purchasing inventory (whether from China or locally) involves input tax credits — you can reclaim GST paid on inputs only if you are registered.
Which GST Registration Do You Need?
Most Amazon India sellers register under Regular GST (not the Composition Scheme). The Composition Scheme limits you to ₹1.5 crore annual turnover and prohibits e-commerce sales — meaning Amazon India sellers cannot use it. Register under the Regular GST scheme. You can register even if your turnover is below ₹20 lakh — which is the normal GST threshold — specifically to sell on e-commerce platforms.
GST Registration Process
- Go to gst.gov.in → New Registration
- Select ‘Taxpayer’ as the registration type
- Fill in: PAN, mobile number, email (all will be verified via OTP)
- Complete Part A (basic details) and receive a Temporary Reference Number
- Complete Part B (business details, principal place of business, bank account)
- Upload required documents: PAN card, proof of principal place of business (rent agreement or own property document), bank account details, photograph
- ARN (Application Reference Number) issued immediately; GSTIN issued within 7–10 working days
GST Filing for Amazon Sellers
Amazon India sellers must file: GSTR-1 (outward supply details) monthly, GSTR-3B (summary return with tax payment) monthly. If your annual turnover is below ₹5 crore, quarterly GSTR-1 filing is available under the QRMP scheme. For most early-stage sellers, hiring a CA or GST consultant (₹500–₹1,500/month) for monthly filing is worthwhile — the compliance burden is real and errors attract penalties.
TCS — Tax Collected at Source by Amazon
Amazon India deducts TCS (Tax Collected at Source) at 1% from your sale proceeds before disbursing payment. This TCS appears in your GST returns and can be claimed as a credit. Make sure your CA accounts for the TCS credit when filing — it reduces your effective tax liability.
Frequently Asked Questions
Can I start selling on Amazon India without GST?
No. Amazon India requires a valid GSTIN before creating a seller account. There are no exceptions. If you do not have GST registration, apply for it first — the process takes 7–10 working days and can be done entirely online.
What GST rate applies to products sold on Amazon India?
GST rates vary by product category: 5% for essential goods, 12% and 18% for most manufactured consumer goods, 28% for luxury and demerit goods. Most Amazon India private label products fall under 12% or 18% GST. Verify the specific HSN code for your product and the applicable rate at cbic.gov.in.
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