Introduction

Running an online business in India has become much easier with platforms like Amazon, It has been a lot easier to run an online business in India with the likes of GST Amazon Flipkart, and other marketplaces. But tax compliance, specifically GST Registration for E-Commerce, is mandatory for sellers to trade legally. The Goods and Services Tax (GST) legislation, regulated by the CGST Act and regulations promulgated by the GST Council, makes it compulsory for all sellers supplying goods or services through an e-commerce operator to register under GST. This blog describes the reason why GST Registration for E-Commerce is mandatory, the procedure, documents needed, and how Lawfinity assists sellers in compliance.

WHY GST IS REQUIRED FOR GST FOR ONLINE SELLERS

E-commerce vendors function differently than offline vendors due to the fact that their sales are conducted through platforms such as GST Amazon Flipkart. GST registration is compulsory regardless of turnover for e-commerce portal vendors as per Section 24 of the CGST Act.

Legal Requirement: No one can sell on sites like GST Amazon Flipkart without GST. The sites deduct Tax Collected at Source (TCS) and pass it on to the government, which necessitates sellers to possess GST.
Inter-State Supplies: Most sellers transport products inter-state. Without GST, interstate supply is illegal.
Input Tax Credit (ITC) Eligibility: Sellers registered under GST can claim ITC on services, courier charges, packing, and raw materials, lowering their overall tax burden.
Trust & Credibility: Compliant sellers are favoured by platforms. GST for Online Sellers instils buyer trust.
Recent Amendments (2023–24): GST Council made it clear that e-commerce sellers need to register despite the threshold exemption cap. Yet, composition scheme merchants (turnover below ₹1.5 crore) may now opt for easy filing in case of selling through e-commerce.

In this way, GST Registration for E-Commerce retains compliance while opening avenues for business growth.

DOCUMENTS REQUIRED

To apply for GST for Online Sellers, the following documents are needed:

1. PAN Card of the applicant or business entity.

2. Aadhaar Card of proprietor/partners/directors.

3. Proof of Business Registration – Certificate of Incorporation/Partnership Deed.

4. Principal Place of Business (PPOB) Proof – rent agreement, electricity bill, or ownership documents.

5. Additional Place of Business (APOB) Proof – required if seller operates from warehouses of GST Amazon Flipkart.

6. Bank Account Proof – canceled cheque or statement.

7. Passport-size Photograph of proprietor/authorized signatory.

8. Digital Signature Certificate (DSC) – for companies/LLPs.

E-commerce sellers must also declare warehouse addresses provided by GST Amazon Flipkart as their APOB to avoid suspension of GSTIN.

PROCESS OF GST REGISTRATION FOR E-COMMERCE

The process of GST Registration for E-Commerce involves:

1. Application on GST Portal: Visit gst.gov.in and click “New Registration.”

2. Business & Personal Details: Provide PAN, email, mobile, and select “Taxpayer” as registration type.

3. OTP Verification: Complete mobile and email OTP verification.

4. Business Information: Upload details of PPOB and APOB (warehouse addresses for GST Amazon Flipkart sellers).

5. Document Upload: Submit ID proofs, address proofs, and bank details.

6. Verification: The GST officer may conduct a physical or Aadhaar-based eKYC verification.

7. GSTIN Allotment: Once approved, you receive a 15-digit GSTIN (Goods and Services Tax Identification Number).

Timelines: Typically, GST for Online Sellers is approved within 3–7 working days. However, if documents are incomplete, it may take longer.

HOW LAWFINITY HELPS

At Lawfinity, we simplify GST Registration for E-Commerce by offering end-to-end assistance:

Eligibility Check: We assess whether you need GST, considering PPOB/APOB requirements.
Documentation Support: Our experts prepare all documents, including warehouse address declarations for GST Amazon Flipkart sellers.
Filing Application: We file your application error-free, avoiding delays and rejections.
Amendments & PPOB/APOB Updates: If you add new warehouses (GST Amazon Flipkart), we help in quick updates to GSTIN.
Post-Registration Compliance: Monthly/quarterly returns, reconciliation of TCS collected by e-commerce operators, and ITC claims.

By choosing Lawfinity, GST for Online Sellers save time, avoid penalties, and remain 100% compliant.