GST for E-commerce Sellers on Amazon, Flipkart and Meesho: Registration, 0.5% TCS, GSTR-1 Table 14, APOB and Returns (2026)
- Selling goods through an e-commerce operator normally requires GST registration from the first sale; since October 2023 a small intra-state seller below the threshold can sell without registration using an enrolment number.
- Marketplaces deduct TCS at 0.5% of net taxable sales and file GSTR-8; the seller must accept the credit in the TDS/TCS statement so it lands in the cash ledger.
- Stock in Amazon or Flipkart warehouses in another state needs a GST registration in that state; the warehouse is added as an additional place of business.
Marketplace selling is the fastest way for a small brand to reach the whole country and the fastest way to accumulate GST mismatches if the mechanics are not understood. E-commerce operators (ECOs) such as Amazon, Flipkart, Meesho and Myntra collect tax at source, report every seller's sales to the government, and require state-wise registrations for warehouse stock. A seller who treats marketplace sales like counter sales ends up with GSTR-1 that does not match GSTR-8, TCS credit that never reaches the cash ledger and notices for unregistered warehouses. This guide sets out the 2026 rules and a worked month.
Registration: who must, who need not
| Seller | Registration |
|---|---|
| Supplies goods through an ECO, any turnover, inter-state or intra-state | Mandatory under section 24(ix) — no threshold — with one exception below |
| Small seller of goods, only intra-state, aggregate turnover below the threshold (₹40 lakh / ₹20 lakh / ₹10 lakh depending on state and goods), no inter-state supply | Exempt from registration since 1 October 2023 (Notification 34/2023-CT); obtains an enrolment number on the GST portal and can sell through ECOs only within the state; no ITC |
| Composition dealer | Can sell goods through an ECO intra-state since 1 October 2023; the ECO collects TCS and reports |
| Services notified under section 9(5) (restaurant food, passenger transport, housekeeping, hotel accommodation by unregistered persons) | The ECO pays the GST; the supplier need not register for those supplies |
| Other services through an ECO (e.g. selling courses via a platform) | Normal threshold rules apply (₹20 lakh / ₹10 lakh) |
Registration itself has no government fee. If you sell inter-state or plan FBA-style warehousing, register from the start through GST Registration rather than starting as an enrolled small seller and migrating later.
TCS: what the marketplace deducts and how you get it back
- Rate: 0.5% of the net value of taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST) since 10 July 2024; earlier 1%.
- “Net value” = sales through the ECO minus returns in the same month.
- The ECO deposits it and files GSTR-8 by the 10th of the next month; the amounts appear in your TDS and TCS credit received statement on the portal.
- You must accept the entries; on acceptance the TCS is credited to your electronic cash ledger, usable against GSTR-3B liability. Unaccepted TCS sits unused.
- TCS is not a cost — it is a prepayment of your own tax. Sellers who forget to accept it pay tax twice.
Reporting marketplace sales correctly
- Sales to consumers through an ECO are B2C supplies for you. In GSTR-1 Table 14 (introduced January 2024) you report supplies made through ECOs on which the ECO collected TCS, ECO-wise with GSTIN; section 9(5) supplies are reported in Table 14(b). The same sales still go in Tables 5 and 7 by state and rate.
- Place of supply for goods delivered to a consumer is the delivery address state — an inter-state sale attracts IGST even if the buyer and you are individuals. Marketplace reports give state-wise splits; use them.
- Returns and cancellations: issue credit notes and report them in Table 9B; the ECO's TCS is computed net of returns in the same month, but your GSTR-1 and the ECO's GSTR-8 will differ if you book returns in a later month.
- Marketplace fees, commission, advertising and shipping charged by the ECO are your inward supplies with GST at 18%; claim ITC only when they appear in GSTR-2B.
Warehouses in other states: APOB
If you send inventory to a fulfilment centre in another state, the goods are stored and supplied from that state, so you need a GST registration in that state with the warehouse as an additional place of business (APOB). Marketplaces provide the warehouse documents (rent agreement or NOC and utility bill) for the application. Stock transfers from your home state to the warehouse are supplies between distinct persons — you raise a tax invoice on your own other-state GSTIN, pay IGST, and claim it as ITC there. Selling from a warehouse without registering in that state is the most common notice e-commerce sellers receive.
Worked example: one month for a Delhi seller on Amazon
Gross sales through Amazon in August 2026: ₹12,00,000 (taxable value ₹10,16,949 at 18%); returns in the month ₹1,00,000 gross (₹84,746 taxable).
- Net taxable value: ₹10,16,949 − ₹84,746 = ₹9,32,203.
- TCS deducted by Amazon: 0.5% × ₹9,32,203 = ₹4,661, reported in GSTR-8 by 10 September.
- Output tax on net sales: 18% × ₹9,32,203 = ₹1,67,797, split IGST/CGST-SGST by delivery state per the Amazon report.
- ITC on Amazon fees and ads (₹1,50,000 + 18% = ₹27,000 GST) and on purchases (say ₹80,000), claimed per GSTR-2B: ₹1,07,000.
- Net payable in GSTR-3B: ₹1,67,797 − ₹1,07,000 = ₹60,797, of which ₹4,661 comes from the cash ledger once the TCS is accepted and ₹56,136 is paid by challan.
The seller who does not accept the TCS pays ₹60,797 by challan and leaves ₹4,661 idle every month — ₹56,000 a year on a small store.
Common mistakes
- Not accepting TCS credit in the TDS/TCS statement, so it never reaches the cash ledger.
- Reporting marketplace sales as intra-state from the seller's state instead of the delivery state.
- Stocking an out-of-state warehouse without registration there.
- Booking returns late, creating a permanent gap between GSTR-1 and GSTR-8 that the department's reconciliation flags.
- Claiming ITC on marketplace invoices before they appear in GSTR-2B — commission invoices often post a month late.
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Open GST Registration →Frequently asked questions
Is GST registration mandatory to sell on Amazon or Flipkart?
For goods, yes — section 24(ix) requires registration regardless of turnover, except that since October 2023 a small seller making only intra-state supplies below the threshold can sell through marketplaces using an enrolment number instead of registration.
What is the TCS rate on e-commerce sales under GST?
0.5% of the net value of taxable supplies (0.25% CGST plus 0.25% SGST, or 0.5% IGST) since 10 July 2024. The marketplace deposits it and files GSTR-8; the seller accepts the credit and uses it from the electronic cash ledger.
Do I need a separate GST registration for stock in an Amazon warehouse in another state?
Yes. Goods supplied from a warehouse in another state require a GST registration in that state with the warehouse added as an additional place of business. Transfers to the warehouse are taxable supplies to your own other-state GSTIN.
Where do I report marketplace sales in GSTR-1?
In the regular B2C tables by state and rate, and additionally in Table 14, ECO-wise, for supplies on which the operator collected TCS (or on which the operator pays tax under section 9(5)).
General information for FY 2026-27, not professional advice for your specific case. Rules change — verify against the latest notification or ask a KyaTax expert.
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