Simplify Your GST Compliance with Expert Guidance!

GST Registration

GST Return

  • TrustedQuick & Easy Process
  • User RatingProfessional Guidance
  • SecureLegal and Tax Benefits

Have queries? Talk to an expert

linkedin
whatsapp
  1. Home
  3. GST
  5. GST Compliance and Reporting
  7. GST Registration for Amazon Seller - All You Need to Know

All About GST Registration for Amazon Seller

Updated on: 14 Oct, 2024 06:15 PM

Amazon stands as a prominent player in the Indian e-commerce landscape, providing a diverse array of products across numerous categories. As per the RBC Capital Markets report, it is anticipated that by 2023, Amazon India will command a substantial 35% market share in the Indian e-commerce sector. The report further highlights India's contribution to Amazon's overall revenue, estimating it to be 4%, with international payments from the country constituting 13% of the total. To engage in selling on Amazon, it is requisite to go through Goods and Services Tax (GST) registration. This unified tax system, which replaced various indirect taxes in India, is obligatory for businesses or individuals involved in the supply of goods and services with an annual turnover surpassing Rs. 20 lakhs. Also, GST registration is mandatory for businesses that supply goods or services through an e-commerce platform such as Amazon, regardless of their turnover. This registration not only ensures compliance with tax regulations but also enables the claiming of input tax credits and helps in averting potential penalties.

Contents

What makes it compulsory for an Amazon seller to obtain a GSTIN?

Businesses engaging in taxable transactions of goods and services, exceeding a turnover of Rs. 20 lakh or Rs. 10 lakh in specific states, are obligated to undergo GST registration as regular taxable entities. This requirement extends to independent e-commerce vendors and those with product listings on platforms such as Amazon.in, excluding items falling under the 0% GST category. GST registration not only ensures compliance but also grants businesses the advantage of accessing benefits like uninterrupted tax credit input under the GST framework.

How to Get a GSTIN for Selling Products on Amazon in India

For Amazon sellers operating in India, obtaining a Goods and Services Tax Identification Number (GSTIN) is compulsory for online product sales. To get a GSTIN as an Amazon seller, you need to follow these steps:

  • Step 1. Register Your Business Entity:
    Choose the appropriate business entity type (e.g., sole proprietorship, partnership, LLP, company) based on your business structure. Provide essential details such as name, address, PAN, and bank account during the registration process.
  • Step 2. Apply for GST Registration Online:
    Visit the GST portal (https://www.gst.gov.in/) and complete the online application form (FORM GST REG-01) with the necessary details and supporting documents. Specify your business's location (state and district) and the nature of your supply (goods, services, or both).
  • Step 3. Verify Your Application:
    Upon submission, you'll receive an acknowledgment number (ARN) and a temporary reference number (TRN) through email and SMS. Verify your application using OTP sent to your registered mobile number or email. Alternatively, use a digital signature certificate (DSC) for applications submitted by companies or LLPs.
  • Step 4. Complete Verification and Obtain GSTIN:
    The GST officer will process your application within three working days. If approved, you'll receive your GSTIN and a certificate of registration (FORM GST REG-06) via email. In case of rejection, you'll receive a notice of rejection (FORM GST REG-05) with reasons, allowing you to reapply within 30 days.
  • Step 5. Update Your Amazon Seller Account:
    After obtaining your GSTIN, update your Amazon seller account to initiate online product sales. Log into your seller account, navigate to Settings > Account Info > Tax Information, and enter your GSTIN in the relevant fields. This ensures compliance with tax regulations while selling products on the Amazon platform.

What are the details that a GST-compliant invoice should have?

To meet GST compliance standards, an invoice must include the following particulars:

  • Invoice number and date
  • Customer name
  • Shipping and billing address
  • Customer and taxpayer’s GSTIN (if registered)
  • Place of supply
  • HSN code / SAC code
  • Item details i.e. description, unit (meter, kg etc.), quantity (number), total value
  • Taxable value and discounts
  • Rate and amount of taxes i.e. CGST/ SGST/ IGST
  • Whether GST is due on a reverse charge basis
  • Signature of the supplier

What are the advantages of becoming an Amazon seller?

Becoming a seller on Amazon, the world's largest online marketplace offers multiple advantages. Some of these benefits include:

  • Reaching millions of customers and businesses on Amazon.in, India's most visited shopping destination.
  • Selling products around the clock and delivering to 100% of India's serviceable pincodes through Easy Ship & Fulfillment by Amazon.
  • Receiving secure and timely payments every 7 days, including for Pay on Delivery orders.
  • Managing your business conveniently from your mobile device with the Amazon Seller App.
  • Accessing a diverse range of tools and solutions to boost business growth, such as custom selling programs, global expansion, and a service provider network.
  • Listing products at zero fixed cost and paying only when you make a sale.
  • Gaining the trust of over 12 lakh sellers from 17K pin codes who have successfully sold on Amazon.in.

Frequently Asked Questions

Q- Can I sell on Amazon without having GSTIN?

You can sell on Amazon without having GSTIN, but only if you are selling products that are GST exempted, such as books, printed materials, or handicrafts. However, if you are selling products that are subject to GST, then you will need to register for GSTIN and pay the applicable tax.

Q- Can I apply for GST registration as an individual seller on Amazon?

Yes, individual sellers on Amazon are also required to obtain GST registration if their turnover exceeds the prescribed threshold or they sale goods that aren’t excempted. The registration process remains the same for both individual and business sellers.

Q- How long does it take to obtain the GSTIN after applying for registration?

The processing time for GST registration is typically three working days. After approval, you will receive your Goods and Services Tax Identification Number (GSTIN) and a certificate of registration.

Q- What do I need to do if my GST registration is not approved?

If your application is rejected, you will receive a notice of rejection (FORM GST REG-05) with the reasons provided. You have the option to reapply within 30 days of receiving the rejection notice.

Q- Is updating my GSTIN on the Amazon seller account necessary?

Yes, it is mandatory to update your Amazon seller account with the obtained GSTIN. This ensures compliance with tax regulations and enables you to continue selling products on the platform.

Q- Can I access educational resources as an Amazon seller for GST-related matters?

Yes, Amazon provides free-of-cost education through Seller University and other learning resources. Sellers can learn from success stories and gain insights into managing their business in compliance with GST regulations.

People also ask

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.