"Do I need GST to sell online?" is one of the first questions a new seller asks. The honest answer: it depends on three things — how much you sell, where your buyers are, and whether you sell through a marketplace or your own website. Here is a simple way to think about it.
This is general information, not tax advice. Rules can change; confirm with your CA before you decide.
The basic turnover limits
- For goods, GST registration is generally needed once yearly turnover crosses ₹40 lakh in most states (₹20 lakh in some special category states).
- For services, the usual limit is ₹20 lakh (₹10 lakh in some special category states).
Below these limits, a seller who sells only inside their own state usually does not need to register.
Selling to other states changes the answer
This is the part many new sellers miss. If you sell goods to buyers in another state — which happens the moment someone from outside your state orders from your website — GST registration generally becomes necessary, whatever your turnover. Some specific items, like certain handicrafts, have separate relief rules.
So a shop in Indore that ships only within Madhya Pradesh is in a different position from one that ships to Mumbai and Delhi.
Marketplace or own website?
- Marketplaces (large ecommerce platforms) have their own rules. They collect TCS, and most ask for a GSTIN at signup. Since late 2023, some small sellers can sell within their own state on marketplaces without GST, subject to conditions.
- Your own website follows the normal rules above. A payment gateway on your site does not by itself make GST compulsory.
Why many small sellers register anyway
- They want to ship all over India, not just their state.
- Business buyers want a GST invoice to claim input tax credit.
- Some payment gateways and courier partners ask for business documents, and a GSTIN makes onboarding smoother.
- It looks more trustworthy to new buyers.
If you are just starting
- Decide where you will ship. Only your state, or all of India?
- List what you sell — goods, services, or both.
- Estimate your yearly sales honestly.
- Talk to a CA with those three answers. The conversation will take ten minutes, not an hour.
Composition scheme: a quick note
Small businesses can sometimes choose the composition scheme, which means simpler returns and a low fixed rate. But composition dealers have limits on selling online and to other states. Ask your CA whether it suits an online business before you choose it.
What your store needs
Once you register, every order should carry a proper GST invoice with your GSTIN, and business buyers should be able to add theirs. Our online stores create GST invoices for every order automatically. See GST billing or online store plans from a one-time ₹4,990.
Sources: 2026 guides on GST registration thresholds and online selling in India. General information only — please confirm with a chartered accountant.
FAQs
Do I need GST to sell online from my own website?
If you sell goods only within your own state and stay below the turnover limit (usually ₹40 lakh for goods), you generally do not need to register. Selling goods to other states usually requires registration. Confirm with a CA.
What is the GST turnover limit for online sellers?
Generally ₹40 lakh for goods and ₹20 lakh for services in most states, with lower limits in some special category states.
Does selling to another state need GST registration?
For goods, inter-state sales generally require GST registration regardless of turnover, with a few special exceptions such as certain handicrafts.
Does my online store create GST invoices?
Yes. Our stores create a GST invoice for every order automatically once you add your GSTIN.
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