If you sell on Amazon, Flipkart, Meesho, or your own website, GST compliance has specific rules that differ from regular businesses. Here is what every e-commerce seller must know in 2025.
Mandatory GST Registration for E-Commerce Sellers
All e-commerce sellers must register for GST regardless of turnover — the normal ₹40 lakh threshold does not apply. This is because the e-commerce operator (marketplace) deducts TCS (Tax Collected at Source) at 1% from your payments, which you can only reconcile if you have a GSTIN.
TCS and GSTR-8 Filing
E-commerce operators must file GSTR-8 monthly showing TCS collected. Sellers can view this TCS in their GSTR-2B and claim it as credit against their output tax liability. Reconcile this every month to avoid cash flow issues.
Place of Supply for Online Sales
For B2C sales on e-commerce platforms, the place of supply is the delivery location of the buyer. For inter-state sales, IGST applies. This means sellers must account for destination-based taxation in their invoicing.
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