Quick answer
E-commerce sellers generally need GST registration to sell through marketplaces, regardless of turnover, with some exceptions for small intra-state sellers. Marketplaces collect TCS on your net sales and report it in GSTR-8; you claim the credit in your cash ledger. Reconcile marketplace reports with GSTR-1 and GSTR-3B every month.
Registration for online sellers
Most marketplaces ask for a GSTIN at onboarding. If you sell inter-state or through an e-commerce operator, registration is generally required. A seller with a home address can register using a utility bill and consent letter. Start with our new GST registration service.
TCS and how credit works
E-commerce operators collect tax at source on the net value of taxable supplies made through them and deposit it with the government. The amount appears in your GSTR-2A/2B and credit ledger, and you use it to pay tax liability.
Returns for e-commerce sellers
- Report marketplace sales in GSTR-1 by state and rate.
- Match TCS credit reported by the operator.
- Report returns and cancellations correctly through credit notes.
- File GSTR-3B with liability net of TCS credit.
Common mistakes
Using one GSTIN for sales shipped from different states, ignoring place-of-supply rules, not recording returns and commission invoices, and claiming ITC on marketplace fees without checking invoices. Maintain warehouse-wise stock data when using fulfilment centres in multiple states, which may need additional registrations.
Support
Our GST return filing and Zoho Books services help e-commerce sellers automate reconciliation.