Selling online does not by itself determine whether you need GST registration in India. The answer depends on whether you are the seller or the platform operator, what you supply, your turnover and state of supply, and whether a specific exemption applies. Sellers using an e-commerce operator should check these factors separately rather than assume that every marketplace seller must register—or that small sellers are automatically exempt.
First, distinguish the seller from the e-commerce operator
An e-commerce operator is a person that owns, operates or manages a digital or electronic facility or platform for electronic commerce. The operator’s registration obligation is separate from the registration position of each supplier using the platform.
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Section 24 of the Central Goods and Services Tax (CGST) Act lists e-commerce operators among categories subject to compulsory registration. CBIC’s e-commerce FAQ explains that the operator’s obligation is not dependent on the value of supplies. A business selling its own goods through its own website is not automatically in the same position as a platform facilitating sales by other suppliers: identify who is making the supply and who is operating the platform.
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When can an online seller be required to register?
For a seller, the main starting points are the general turnover-based framework in section 22 and the compulsory-registration cases in section 24. Marketplace use is relevant, but it is not the only test. Check the nature and location of the supplies, the seller’s applicable threshold and any statutory exception or current notification.
Suppliers using an operator that collects tax at source
Section 24(ix) concerns suppliers making supplies through an e-commerce operator required to collect tax at source under section 52. This is a general compulsory-registration rule, not a complete answer for every online seller: the Act and CBIC’s FAQ distinguish particular notified services and exemptions. Check whether the operator and the specific supply fall within the rule before deciding that it applies.
Services covered by a section 9(5) notification
For certain notified services, section 9(5) places the tax-payment responsibility on the e-commerce operator. CBIC’s FAQ describes threshold exemption for certain suppliers in this context. That treatment is specific to the notified service and its applicable conditions; it should not be extended to other services or to goods merely because they are sold on the same platform.
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Goods sold through an e-commerce operator
There is a limited later exemption framework for certain unregistered suppliers of goods using e-commerce operators. Its precise current conditions are not established here, so a seller should not rely on a broad claim that all small marketplace goods sellers are exempt—or that none can be. Verify the operative notification and whether the seller, supply and platform meet every condition before relying on an exemption.
Why turnover and state of supply still matter
Section 22 provides the general threshold-based framework, while section 24 sets out compulsory-registration categories. A single turnover figure is not a universal answer: the applicable threshold depends on the seller’s circumstances and the relevant rules. The older CBIC FAQ’s threshold language should not be treated as a complete current threshold table for every state and seller category.
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Inter-State taxable supplies are among the cases listed in section 24, subject to applicable statutory exceptions and notifications. Work out whether each relevant supply is intra-State or inter-State and check the exception, if any, that applies to that kind of supplier or supply. Do not infer the registration result from the marketplace’s location alone.
Use this checklist before deciding
- Identify the supplier and operator. Establish who legally makes the supply and whether your business merely sells through a platform or also operates one that facilitates other suppliers’ sales.
- Classify the supplies. Separate goods from services and identify whether any service is covered by a section 9(5) notification.
- Map turnover and locations. Assess the relevant turnover against the threshold applicable to your case, and identify the state or union territory and whether supplies are intra-State or inter-State.
- Check compulsory-registration rules and exceptions. Review section 24 and the current notification for any claimed exemption, including the conditions for an unregistered goods supplier using an e-commerce operator.
- Apply in each jurisdiction where liable. If you are liable, registration is state- or union-territory-specific; a registration in one jurisdiction does not replace an application where you are separately liable in another.
How to apply through the GST Portal
The GST Portal’s normal taxpayer registration guide describes an online application process that starts with PAN, mobile number, email address and state information, followed by the registration application. Use the portal’s current prompts and guidance for the remaining application details.
- Open the GST Portal’s registration service and select the normal taxpayer route described in its registration guide.
- Provide the initial PAN, mobile, email and state details requested by the portal.
- Continue with the registration application and enter the information requested for the business and the jurisdiction where registration is required.
- Submit a separate application for each state or union territory in which the business is liable to register.
Under section 25(1) of the CGST Act, a person liable under section 22 or section 24 must apply in every state or union territory where liable within thirty days of becoming liable. This is the statutory application window; determine when liability begins from the facts of the business and applicable rules.
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Common mistakes to avoid
- Treating every marketplace seller alike: operator and supplier obligations are distinct.
- Applying the service exception to goods: section 9(5) treatment concerns notified services, while goods have a separate limited exemption framework whose conditions must be checked.
- Relying on a single turnover number: turnover thresholds do not replace compulsory-registration checks or analysis of place and type of supply.
- Assuming a portal application answers whether registration is required: portal guidance explains the process; liability must be assessed under the Act and applicable notifications.
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