Whether an online seller in India needs GST registration depends on more than turnover. You must consider aggregate turnover across the seller’s activities under the same PAN, the type and location of supplies, the State or Union territory involved, and whether a marketplace is an e-commerce operator collecting tax at source (TCS). The CGST Act lists some compulsory-registration situations, but exemptions and later notifications can change how they apply. In particular, do not assume that every below-threshold marketplace seller must register—or that every such seller can remain unregistered.
Start with the seller’s full GST picture
Before comparing sales with a threshold, identify the legal seller, what it supplies, where its supplies are made, and where it has places of business or stock. The registration decision is not made account by account or marketplace by marketplace.
- Aggregate turnover: Assess turnover on a PAN-wide basis under the applicable GST rules. Include relevant business activities rather than counting only one marketplace account or one GST registration. A sole proprietor should assess business turnover consistently with the proprietor’s PAN and the applicable rules.
- Supply type: Goods and services can have different threshold figures. Also distinguish ordinary seller supplies from services notified under CGST Act section 9(5), for which the e-commerce operator—not the underlying service provider—pays GST as the deemed supplier.
- Supply location and business locations: Work out whether supplies are intra-State or inter-State and identify every State or Union territory where the seller is liable or has a relevant place of business.
- Marketplace role: Establish whether the platform is an e-commerce operator required to collect TCS under section 52. Marketplace sales do not have a single rule that applies to every seller and every transaction.
CBIC’s older e-commerce FAQ describes the broad statutory marketplace and inter-State rules. Those statements must be read alongside applicable exemptions and later notifications; the FAQ by itself does not settle every current seller’s eligibility.
Turnover thresholds: use the figures with their date and limits
CBIC’s GST update dated 1 April 2019 stated a general threshold of ₹40 lakh for suppliers of goods, with a ₹20 lakh threshold in Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. The same update stated separate service thresholds: ₹20 lakh generally and ₹10 lakh in Manipur, Mizoram, Nagaland and Tripura.
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These are figures from CBIC’s 2019 published update, effective 1 April 2019—not a complete determination of a seller’s present eligibility in 2026. State or UT, supply mix, seller category, applicable notifications and subsequent changes can affect the result. Confirm the current rule for the seller’s facts before relying on a figure.
| Supply type in CBIC’s 1 April 2019 update | Published threshold | Qualification |
|---|---|---|
| Goods | ₹40 lakh generally | CBIC’s dated statement; applicability may be affected by State/UT, seller facts and later rules. |
| Goods in the listed States/UTs | ₹20 lakh | Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand; CBIC’s dated statement, not a complete current eligibility check. |
| Services | ₹20 lakh generally | CBIC’s dated statement; verify current applicability. |
| Services in the listed States | ₹10 lakh | Manipur, Mizoram, Nagaland and Tripura; CBIC’s dated statement, not a complete current eligibility check. |
Being below a threshold does not end the analysis: compulsory-registration categories may apply, subject to exemptions. Conversely, crossing a headline figure should be assessed against the actual applicable threshold and rules, not a generalized online summary.
Marketplace sales, TCS and the below-threshold question
Section 24 of the CGST Act includes certain suppliers selling through an e-commerce operator required to collect TCS under section 52 among compulsory-registration categories. It also includes inter-State taxable suppliers. The Act allows notified classes to be exempted, so the statutory text alone is not always the final answer for a particular seller.
CBIC’s e-commerce FAQ describes an operator as a person owning, operating or managing a digital or electronic facility or platform, and discusses TCS on supplies for which the operator collects consideration. Its discussion includes a TCS percentage and return details, but those may reflect earlier law; do not treat the FAQ’s rate as current without checking current law and notifications.
Later conditional relief has been reported for some below-threshold sellers of goods making intra-State supplies through an e-commerce operator. The official material identified here does not establish the operative notification’s exact conditions, permitted scope, enrollment process or current platform implementation. Accordingly, neither blanket answer—“all marketplace sellers must register” nor “below-threshold sellers can sell without registration”—is safe. Confirm the current notification, GST Portal requirements and the relevant operator’s onboarding process for the seller’s specific case.
What TCS means for a seller
TCS is a collection mechanism associated with an e-commerce operator’s covered supplies; it is distinct from the operator paying GST as deemed supplier for specified section 9(5) services. TCS status can affect the registration analysis, but it does not itself tell you whether a conditional exemption applies. Check the operator’s role, whether it collects section 52 TCS on the seller’s supplies, the seller’s supply pattern and the applicable notification.
Direct sales, intra-State sales and inter-State shipping
A seller making only direct sales within one State may have a different registration result from a seller making inter-State taxable supplies or selling through a TCS-collecting marketplace. The threshold, compulsory-registration provisions and any applicable exemption all matter; “online” by itself is not a separate universal registration test.
The Act lists inter-State taxable supplies as a compulsory-registration category, subject to notified exceptions and the seller’s exact facts. Do not infer that every shipment crossing a State boundary has the same result without classifying the supply and checking current exceptions. Similarly, selling only within the seller’s State does not automatically establish that registration is unnecessary: turnover, marketplace use, business locations and other compulsory-registration rules still need to be checked.
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Which State or UT registration applies?
Registration is State/UT-specific. Under section 25(1), a person liable under the Act applies in each State or Union territory where liable, generally within 30 days of becoming liable. The Act provides for a single registration in each State/UT by default; separate registrations in different States/UTs are treated as distinct persons for GST purposes.
Therefore, a seller should assess the actual places of business and supply circumstances, not just the owner’s home address. Stock held or business operations in another State may affect the analysis. Identify the locations involved and determine whether the seller is liable to register in each before assuming one home-State registration covers all activity.
Applying for registration and when it takes effect
The GST Portal’s normal-taxpayer registration guide describes an online application that asks for PAN, legal name, State/UT, place-of-business information and business details. The application process does not determine whether registration is legally required; classify the seller’s supplies and check exemptions first.
- Determine liability and the relevant State/UT. Apply the threshold and compulsory-registration rules to the seller’s aggregate turnover, supply locations, marketplace role and business locations.
- Use the GST Portal’s registration application for the appropriate taxpayer category. Provide the requested PAN, legal name, State/UT, place-of-business and business details.
- Observe the filing deadline. A person liable under section 22 or 24 generally applies within 30 days of becoming liable. A casual taxable person or non-resident taxable person applies at least five days before commencing business.
- Check the effective date. The GST Portal guide says an application by a normal taxpayer filed within 30 days of liability is effective from the date liability arose; if filed late, registration is effective from the date it is granted.
Returns after registration
Registration brings ongoing compliance obligations. The GST Portal describes GSTR-1 as the outward-supplies statement for normal and casual registered taxpayers making outward supplies of goods or services, with monthly and quarterly filing options. Its reporting fields include e-commerce supplies. Composition taxpayers and specified categories are excluded from GSTR-1; the applicable scheme, form and filing frequency depend on current eligibility and portal guidance.
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Before choosing a scheme or filing cadence, check the current requirements for the seller’s category and the portal’s instructions. A return summary for normal taxpayers should not be assumed to apply to composition taxpayers or other excluded categories.
Quick Recap
A practical decision checklist
- Identify the seller and aggregate turnover across relevant activities under the same PAN.
- Classify supplies as goods, services or a mix, and check whether any service falls under a notified section 9(5) category.
- Use the actual place-of-supply facts to determine whether supplies are intra-State or inter-State.
- List every State/UT where the seller has a relevant place of business, stock or potential registration liability.
- For marketplace sales, establish whether the operator collects section 52 TCS and whether the current notification provides a conditional route for the seller’s exact circumstances.
- Verify the current notification and GST Portal and marketplace enrollment requirements before deciding that a below-threshold seller can remain unregistered.
- If liability exists, apply in each relevant State/UT within the applicable time limit and confirm the effective date and subsequent return obligations.
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