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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.
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.
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:
To meet GST compliance standards, an invoice must include the following particulars:
Becoming a seller on Amazon, the world's largest online marketplace offers multiple advantages. Some of these benefits include:
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.
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.
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.
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.
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.
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.
