The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Short answer: In India, GST treatment depends less on whether an order appears on a marketplace or on your own domain and more on who is making the supply, whether the electronic commerce operator (ECO) collects the customer’s consideration, the type of supply, turnover, State or Union territory, and whether an exception applies. A third-party seller using an ECO generally faces compulsory registration under section 24(ix), subject to the narrow goods-supplier relief in Notification No. 34/2023-Central Tax. A business selling its own goods through its self-hosted website does not collect section 52 TCS on those own-account sales, but the sales remain taxable where applicable and ordinary registration rules still apply.
The legal question is who supplies, not simply where the checkout sits
“Marketplace versus website” is an incomplete GST test. An electronic commerce operator is a person who owns, operates or manages a digital or electronic facility or platform for electronic commerce. A business can therefore operate its own website and fall within the ECO definition while simultaneously selling its own products. That does not automatically make every order a section 52 Tax Collected at Source (TCS) transaction.
As an Amazon Associate I earn from qualifying purchases.
The decisive distinction is between:
- Own-account supply: the operator itself is the supplier to the customer, under its own commercial arrangement and billing; and
- Another supplier’s supply through an ECO: an independent seller supplies the customer using the ECO, and the ECO collects the consideration.
Section 52 addresses the second situation. CBIC’s sectoral FAQs state that a person selling its own products through a self-hosted website may meet the ECO definition, but does not have to collect section 52 TCS on those own-account supplies. The sale itself can still be subject to GST at the applicable rate, and the seller must test normal registration rules.
PC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Outdated Drivers Are Slowing You Down
One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchAt-a-glance comparison
| Issue | Third-party supplier using an ECO | Business selling its own goods on its website |
|---|---|---|
| Who makes the customer supply? | The independent supplier using the ECO. | The website operator makes an own-account supply. |
| Section 52 TCS | Relevant where the ECO collects consideration for taxable supplies made through it, subject to the statutory framework. | CBIC says section 52 TCS is not collected on the operator’s own-account sales merely because it operates the website. |
| Registration starting point | Section 24(ix) generally requires compulsory registration for qualifying suppliers through an ECO, with a limited goods-supplier exemption under Notification No. 34/2023-Central Tax. | Normal registration provisions apply; operating a self-hosted site does not remove GST liability. |
| Inter-State goods sales | Not permitted for an unregistered seller relying on Notification No. 34/2023-Central Tax. | Must be assessed under the ordinary registration and supply rules applicable to the business. |
| Portal enrolment | A seller using the 2023 exemption must complete the required PAN declaration and common-portal enrolment before making ECO supplies. | No section 24(ix) exemption enrolment is created merely by selling own goods through a website. |
| GSTR-1 treatment | GST Portal instructions identify reporting fields for ECO supplies under section 52; section 9(5) supplies are a separate category. | Reported as the operator’s own outward supplies under the applicable return requirements. |
How compulsory registration works for third-party ECO sellers
The general section 24(ix) rule
Section 24(ix) of the Central Goods and Services Tax Act, 2017 generally overrides the ordinary threshold exemption for a person making supplies through an ECO that is required to collect tax under section 52. CBIC’s sectoral FAQ frames the issue as whether a person supplying goods or services through an ECO can claim the threshold exemption and answers that the supplier is generally liable to register. This is why older guidance often says that a small marketplace seller must register from the first qualifying sale.
#1 Best Overall
The rule is not a universal statement about every online transaction. It is tied to the statutory ECO and TCS conditions, and it must be read with the separate treatment of services for which the ECO pays tax under section 9(5), as well as later notifications.
The limited goods-supplier relief from Notification No. 34/2023
Notification No. 34/2023-Central Tax, dated 31 July 2023, creates a conditional exemption from compulsory registration under section 24(ix) for a specified class of goods suppliers. It is a narrow exception, not a general “sell on a marketplace without GST registration” rule.
A goods supplier can rely on the relief only when the notification’s conditions are all met. The central conditions described in the notification are:
- Aggregate turnover in both the preceding financial year and the current financial year does not exceed the applicable section 22 registration threshold.
- The supplier does not make inter-State supplies of goods.
- The supplier supplies goods through an ECO in only one State or Union territory.
- The supplier has a valid PAN.
- The supplier declares its PAN, business address and intended State or Union territory on the common GST portal.
- The supplier receives an enrolment number after portal validation before making supplies through the ECO.
Missing one condition removes the safe basis for using this particular exemption. For example, a seller that begins shipping goods across State borders cannot continue to treat the notification as permission to remain unregistered. Likewise, listing through ECOs in more than one State or Union territory is outside the stated condition.
Why turnover must be checked twice
The notification uses aggregate turnover in both the preceding and current financial year. Do not look only at the value of orders on one marketplace, one product line or one website. Aggregate turnover is a business-level test under GST and can include supplies that are not confined to the ECO channel. Track the figure throughout the year because crossing the applicable section 22 threshold changes the registration analysis.
Own website sales: what changes and what does not
No section 52 TCS on own-account products
CBIC’s FAQ considers a supplier selling its own products through a website hosted by itself. It says the person falls within the ECO definition, but section 52 TCS applies to taxable supplies made through the ECO by other suppliers when the ECO collects consideration. On that basis, the operator does not collect section 52 TCS on its own-account website sales.
This is a TCS conclusion, not a GST exemption. The operator still has to determine whether it must register under the ordinary rules, charge GST at the applicable rate when registered or otherwise liable, issue the required tax invoice where applicable, maintain records and report its outward supplies.
Recommended Free Tools
Rank #2
- Ideal for Gifting
- Ideal for a bookworm
- Compact for travelling
Buying from vendors and reselling under your own billing
CBIC also describes a business that buys goods from vendors and resells them through its own website under its own billing. That arrangement contains two supplies:
- The vendor supplies goods to the business.
- The business makes a separate supply to the customer.
The customer-facing sale is the business’s own-account resale. It is not converted into a section 52 TCS transaction merely because the order was placed online. The business must nevertheless account for GST on the vendor purchase and on its resale according to the applicable tax treatment, valuation, invoicing and input-tax-credit rules.
When the platform collects consideration
Section 52 focuses on the ECO’s collection of consideration for taxable supplies made through it by other suppliers. CBIC describes TCS as being collected on the net value of taxable supplies made through the operator, with the value of supplies returned to customers reducing that net value. The operator’s contractual flow of funds therefore matters.
Do not insert a percentage from an old FAQ into current contracts or pricing models. TCS rates and procedural requirements can change through amendments and notifications. Use the current CGST Act, rules, notifications and GST Portal instructions applicable to the filing period before calculating or withholding any amount.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsSection 9(5) services are a separate branch
The ECO registration rule and the 2023 goods-supplier exemption should not be applied mechanically to every service sold online. Section 24(ix) expressly sits alongside the statutory treatment of specified services for which the ECO is liable to pay tax under section 9(5). CBIC’s FAQ distinguishes that exception when discussing the registration question.
For a service business, first identify whether the service falls into a notified section 9(5) category and whether the ECO, rather than the supplier, is liable for the tax. Then determine the supplier’s registration and invoicing obligations under the rules for that category. The Notification No. 34/2023 relief described above is framed for goods suppliers and should not be presented as a blanket relief for service providers.
State, Union territory and inter-State checks
Where registration is examined
GST registration is State- or Union-territory-specific. Section 25(1) requires a person who becomes liable to register to apply in each relevant State or Union territory, generally within 30 days of becoming liable. The place from which the business makes supplies, its additional locations, and the nature of its outward supplies all affect the analysis.
An ECO seller using the 2023 below-threshold relief must identify one intended State or Union territory for ECO supplies and complete the portal declaration and enrolment before the first such supply. A change in operating model, warehouse location or fulfilment arrangement can require a fresh registration review.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Inter-State goods are a hard boundary for the notification
The notification condition is explicit: an unregistered goods supplier relying on it cannot make inter-State supplies of goods. A seller may therefore be below the section 22 threshold and fully enrolled on the portal, yet lose the exemption if it starts shipping goods from one State to customers in another. Review the destination and movement of goods, not just the address shown on the seller profile.
Reporting ECO transactions in GSTR-1
The GST Portal’s “Creation of Outward Supplies Return in GSTR-1” guidance identifies separate reporting fields for:
- Supplies made through an ECO where section 52 applies; and
- Supplies for which the ECO is liable under section 9(5).
These are reporting categories, not interchangeable labels. A seller should reconcile order data, cancellations, returns, taxable value, tax charged and the ECO’s statements before filing. An own-account website sale is reported as the operator’s outward supply rather than being placed in the third-party section 52 category solely because the website is an ECO.
Portal screens and return fields can be revised. Follow the instructions displayed for the relevant tax period and retain the underlying order, payment, refund and invoice records that support the values filed.
A practical decision process before choosing a channel
- Map the contracting parties. Read the seller, customer and ECO agreements. Identify who owns the inventory, who issues the customer invoice, who bears returns and who is legally making the supply.
- Classify the supply. Record whether each line is goods or services. For services, test whether a notified section 9(5) category applies.
- Identify the money flow. Determine whether the ECO collects customer consideration or merely provides technology, advertising or payment services.
- Calculate aggregate turnover. Include the business’s relevant supplies across channels and compare the preceding and current financial years with the applicable section 22 threshold.
- Test State and movement facts. List every State or Union territory from which supplies are made, where goods move, and whether any supply is inter-State.
- Apply section 24(ix). If a qualifying third-party ECO supply is involved, start with compulsory registration rather than assuming the normal threshold exemption.
- Test Notification No. 34/2023 condition by condition. Use it only for the covered goods-supplier situation and only after confirming the turnover, no-inter-State-supply, one-State-or-Union-territory and portal requirements.
- Complete portal enrolment before supply. For a seller relying on the notification, submit the PAN and business details and wait for the enrolment number before the first ECO order.
- Set up records and return mapping. Separate own-account sales, third-party ECO sales and any section 9(5) supplies in the accounting system so the correct GSTR-1 category is used.
- Recheck after operational changes. Revisit registration when turnover crosses the threshold, a new State is added, inter-State shipping begins, a second ECO is used, or the platform changes who collects consideration.
Common mistakes and how to correct them
“My turnover is below the threshold, so I never need registration.”
That statement ignores section 24(ix). A third-party seller through a qualifying ECO generally cannot rely on the ordinary threshold exemption unless a specific exception, such as the tightly conditioned 2023 goods-supplier notification, applies.
Correction: classify the ECO arrangement first, then test the notification and all of its conditions.
Rank #4
“My own website means GST does not apply.”
CBIC’s own-site answer removes section 52 TCS from the operator’s own-account sales; it does not remove GST on the sale or the ordinary registration rules.
Correction: separate the TCS question from the registration, tax-rate, invoice and return questions.
“The 2023 exemption lets me sell anywhere in India without registration.”
The notification requires that the unregistered goods supplier not make inter-State goods supplies and use an ECO in only one State or Union territory, in addition to the turnover and enrolment conditions.
Correction: monitor shipping destinations and platform expansion before accepting an order that would breach the condition.
“Every online sale belongs in the section 52 GSTR-1 field.”
The section 52 field is for the relevant ECO supplies. Section 9(5) has a separate category, and an operator’s own-account website sales are its own outward supplies.
Correction: map the legal supplier and tax-liability model to the return field, not the website URL.
Free tools Windows power users keep installed
One-click scans. No signup required.
“An old TCS percentage is safe to use.”
The rate cited in older explanatory material may no longer be current.
Best Value
- It can be a gift option
- Comes with secure packaging
- Helpful in various ways
Correction: verify the rate and calculation method in the law and portal guidance for the tax period being filed.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Worked scenarios
Small apparel seller on one ECO, one State
A goods seller is below the applicable section 22 threshold in both the preceding and current financial year, sells only within one State, uses one ECO in that State, has a PAN, completes the portal declaration and receives an enrolment number before its first order. Those facts align with the stated conditions for the Notification No. 34/2023 relief. The seller must continue monitoring turnover and shipping; the relief is lost if a condition stops being true.
Same seller begins inter-State shipping
The seller’s turnover remains below the threshold, but it starts sending goods to customers in another State. The no-inter-State-goods condition is no longer met. The seller should stop relying on the notification and assess registration and tax obligations before continuing that model.
Manufacturer sells from its own website
The manufacturer owns the inventory, contracts with the customer, issues the sale documentation and receives payment through its own checkout. It may be an ECO in the statutory sense, but CBIC’s FAQ says it does not collect section 52 TCS on those own-account supplies. The manufacturer still applies the ordinary GST registration and charging rules that fit its turnover, location and products.
Platform hosts an independent seller and collects the customer’s payment
The independent seller is making the customer supply through the ECO, and the ECO collects consideration. Section 24(ix) and section 52 are the starting points. The seller must determine whether compulsory registration applies or whether every condition of the 2023 goods-supplier exemption is satisfied. The ECO must use the applicable TCS and reporting process, with current rates and rules verified for the filing period.
Website operator buys stock and resells it
The operator purchases from a vendor and then sells to the consumer under its own billing. The vendor-to-operator purchase and operator-to-consumer sale are separate supplies. The consumer sale is not a third-party supplier’s section 52 sale simply because it occurred online, but both legs require the GST treatment applicable to their facts.
Records to keep for an audit or registration review
- Contracts showing whether the platform is an ECO, agent, technology provider or seller of its own inventory.
- Invoices identifying the supplier to the customer and the tax charged.
- Order, cancellation, return and refund reports used to determine net taxable supplies.
- Payment-settlement statements showing who collected consideration and when funds were remitted.
- State-wise registration details, warehouse and fulfilment locations, and evidence of goods movement.
- Aggregate-turnover workings for the preceding and current financial years.
- PAN declaration, business-address declaration and the portal enrolment number where Notification No. 34/2023 is used.
- GSTR-1 workings reconciling section 52 ECO supplies, section 9(5) supplies and own-account outward supplies.
What to verify before relying on an exemption
GST rules and portal procedures can change. Before launching or changing an online channel, confirm the current text of sections 24, 25 and 52 of the CGST Act, the latest version of Notification No. 34/2023-Central Tax and the GST Portal instructions for the relevant return period. A tax professional can assess edge cases such as multiple registrations, marketplace contracts, mixed goods and services, fulfilment by another State, exports, or a change from reseller to commission model.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
The channel decision should therefore be documented as a tax-operating model: identify the supplier, classify the goods or service, trace consideration, test turnover and State facts, then apply the correct registration, TCS and reporting rule.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
