GST for small online sellers in India: when registration is required
Understand the limited GST enrolment route for eligible small goods sellers on e-commerce marketplaces, its no-inter-State restriction, the PAN and portal steps, and when full GST registration needs checking.
In this guide
Separate the general GST rule from the marketplace exception
A marketplace may ask for a GSTIN, but the law also provides a narrow enrolment route for some small sellers of goods. It is not a blanket exemption for every online shop.
A limited route exists for some unregistered sellers of goods
Notification 34/2023 allows a person whose aggregate turnover stays below the applicable registration threshold to supply goods through a qualifying e-commerce operator without taking GST registration, if every notified condition is met. The special route began on 1 October 2023.
This route is restricted to one State or Union territory
The seller cannot make inter-State supplies under the exemption and cannot use e-commerce operators to supply through more than one State or Union territory. If a buyer's order would cross the seller's State boundary, the seller must not assume the unregistered route covers it.
The turnover threshold depends on GST rules
Do not use a single India-wide number from an old post. The applicable threshold can depend on the State or Union territory, the type of supply and the facts of the business; calculate aggregate turnover under GST rules, not only sales on one marketplace.
| Question | My answer | Evidence to keep |
|---|---|---|
| Do I sell goods rather than services? | Product and business activity | |
| Is turnover below my applicable GST threshold? | All relevant sales and GST calculation | |
| Will every marketplace order stay within one State/UT? | Dispatch location and customer destination | |
| Does the platform support the enrolment route? | Written confirmation and portal enrolment |
Complete the PAN-based enrolment before selling
A qualifying seller is not simply allowed to skip every portal step. The notification requires details to be declared and validated before goods are supplied through an operator.
Use the business PAN and declared place of business
Before the first marketplace supply, the seller must declare the PAN, business address and State or Union territory on the common portal. The declared information is subject to validation.
Wait for the enrolment number
The notification requires the common portal to grant an enrolment number after successful validation. The e-commerce operator must allow a covered unregistered seller only after that number is allotted.
Check whether the marketplace has enabled this flow
The operator's notified process blocks inter-State orders for an unregistered seller and reports supplies through its GST statement. Ask the marketplace how it handles the enrolment number, serviceability and order cancellation before you list products.
Know what changes if you take regular GST registration
A seller planning to ship across India or grow beyond the applicable threshold may need the regular registration path. Registration brings continuing invoice, tax-payment and return duties.
Check mandatory-registration triggers before expanding
Inter-State goods sales, sales through multiple States, turnover above the threshold, certain activities or other statutory triggers can change the answer. Services and goods have different rules, so do not apply the goods-seller notification to a service business.
Do not collect GST as an unregistered person
A seller using the enrolment route is not a GST-registered seller. Do not show a made-up GSTIN, charge GST separately or issue a GST tax invoice. If you register, use the GSTIN and comply with the invoicing and return rules that then apply.
Model the costs before choosing voluntary registration
Registration can allow input-tax credit where the law permits, but it also adds tax calculations, records and filing. Compare the expected tax treatment, platform access, customers and compliance costs with a qualified tax professional before opting in voluntarily.
Keep the seller account and records accurate
Reconcile marketplace and direct sales
Maintain order, cancellation, return, payment and expense records from every sales channel. The GST threshold is not tested by looking at only one app if the law requires broader turnover to be counted.
Stop and review when the business changes
Pause new marketplace dispatches while you check the correct route if you add services, open a second-State stock location, begin shipping across States or approach the turnover threshold. Do not wait for a marketplace block to discover that eligibility changed.
Treat tax notices and profile mismatches promptly
Save portal acknowledgements and marketplace messages. If a PAN, address or State does not match the business record, correct it through the portal and seek a tax professional's help for a notice or disputed liability.
Questions about GST and selling online
Can a small seller list goods on every marketplace without a GSTIN?
No. The exemption has conditions, and the marketplace must support the notified enrolment process. Check the current operator workflow and the official portal first.
Can I use the unregistered route to ship to another State?
No. The notified exemption does not permit inter-State supplies and restricts marketplace supplies to one State or Union territory.
Does the route cover online services?
The cited notification covers supplies of goods through qualifying operators. Service businesses should check the separate GST rules that apply to their service and sales channel.
Does the special enrolment number become a GSTIN?
No. It is an enrolment number for this limited route, not a regular GST registration. Keep its legal effect and the platform's instructions clear in your business records.
Related practical guides
Related issue guides
Sources and publication record
Draft prepared 26 September 2026; project-team editorial review pending · Sources checked .
- Notification 34/2023-Central Tax: conditions for unregistered goods sellers using e-commerce operatorsCentral Board of Indirect Taxes and Customs, Ministry of Finance, Government of India
- Notification 37/2023-Central Tax: procedure for e-commerce operators serving eligible unregistered sellersCentral Board of Indirect Taxes and Customs, Ministry of Finance, Government of India
- Central GST registration rules and application guidanceCentral Board of Indirect Taxes and Customs, Government of India