Quick Answer
GST registration is mandatory for all ecommerce sellers in India — regardless of turnover. You must collect GST from customers (rates vary by product: 5%, 12%, 18%, or 28%), issue GST invoices, and file GSTR-1 and GSTR-3B returns. HOD Media generates CGST/SGST/IGST invoices automatically so you don't need a separate billing tool.
Why GST Registration is Mandatory for Ecommerce (Not Just at ₹40 Lakh)
Unlike offline businesses, ecommerce sellers cannot use the ₹40 lakh turnover threshold exemption. Section 24 of the CGST Act lists "persons who make taxable supplies of goods or services through an electronic commerce operator" as one of the categories that must register compulsorily, regardless of turnover.
This applies whether you sell on a marketplace (Amazon, Flipkart, Meesho) or on your own store (built on HOD Media, Shopify, or any other platform). The moment you receive your first online order, you must already have a GSTIN.
How to Get GST Registration as an Ecommerce Seller
GST registration is free and takes 7–15 business days through the GSTN portal at gst.gov.in.
Documents required:
- PAN card (mandatory)
- Aadhaar card (for Aadhaar-based e-signing)
- Proof of business address (utility bill, rent agreement, or ownership document)
- Bank account details (cancelled cheque or bank statement)
- Digital signature certificate (DSC) for companies and LLPs; not required for individuals
- Photos of the business premises (front view)
After submission, a GST inspector may visit your business address for verification. Once approved, you'll receive a 15-digit GSTIN. Register this GSTIN in your HOD Media store settings and it will appear on every tax invoice.
GST Rates for Common Ecommerce Product Categories
GST rates are determined by the HSN (Harmonised System of Nomenclature) code of your product. Common rates for online sellers:
| Category | GST Rate | Examples |
|---|---|---|
| Clothing (≤₹1,000/piece) | 5% | T-shirts, kurtas, salwar suits |
| Clothing (> ₹1,000/piece) | 12% | Formal wear, branded apparel |
| Footwear (≤₹1,000/pair) | 5% | Basic sandals, chappals |
| Footwear (> ₹1,000/pair) | 12% | Sports shoes, formal shoes |
| Handicrafts / Art | 12% | Pottery, paintings, handmade goods |
| Electronics (most) | 18% | Mobile accessories, speakers, chargers |
| Food & snacks (packaged) | 5% or 12% | Biscuits, namkeen, masala |
| Beauty & cosmetics | 18% | Perfume, lipstick, skincare |
| Books | 0% | All printed books |
Always verify your exact HSN code and rate at the official GSTN portal. Rates change over time and vary by sub-category.
IGST vs CGST + SGST — Which Applies to You?
The type of GST charged depends on whether your buyer is in the same state or a different state.
- Intra-state sale (seller and buyer in same state): Charge CGST + SGST, each at half the total GST rate. Example: 18% GST = 9% CGST + 9% SGST.
- Inter-state sale (seller and buyer in different states): Charge IGST at the full GST rate. Example: 18% GST = 18% IGST.
HOD Media handles this automatically — it detects the delivery address and applies CGST+SGST or IGST accordingly on each invoice. You don't need to calculate this manually.
GST Invoicing Requirements for Ecommerce
Every taxable sale must be accompanied by a valid GST tax invoice. The invoice must include:
- Your business name, GSTIN, and address
- Customer name and GSTIN (if the customer is a business)
- Invoice number (unique, sequential) and date
- Product description, HSN code, quantity, and unit price
- Taxable value and GST amount (CGST/SGST split, or IGST)
- Total invoice amount
HOD Media generates all of this automatically on every order — you don't need a separate invoicing tool. The invoice PDF is emailed to the customer and available in your order dashboard.
Filing GST Returns as an Ecommerce Seller
Most ecommerce sellers file two returns each month: GSTR-1 and GSTR-3B.
- GSTR-1: Report all outward supplies (sales). Monthly for turnover > ₹5 crore; quarterly for smaller sellers under QRMP scheme.
- GSTR-3B: Summary return with tax payment. Filed monthly for most sellers.
- GSTR-9: Annual return. Filed once a year.
You can export your sales data from HOD Media's order dashboard and import it into a GST filing tool like Tally, ClearTax, or the GSTN portal directly. Your CA can also do this for ₹500–₹2,000/month.
GST on Shipping Charges
Shipping charges in India are taxable at 18% GST. However, if you include shipping in the product price and show "Free Shipping," there's no separate shipping line on the invoice — the GST is part of the product price. Most Indian D2C stores choose this approach for simplicity.
Is GST registration mandatory for ecommerce sellers in India?
Yes. Under Section 24 of the CGST Act, any person who supplies goods or services through an electronic commerce operator is mandatorily required to obtain GST registration, regardless of annual turnover. The normal ₹40 lakh threshold exemption does not apply to ecommerce sellers.
What is the GST rate for online sales in India?
GST rates vary by product category: 0% on basic essentials (most unprocessed foods, books), 5% on some food items and textiles, 12% on many clothing and goods, 18% on electronics and most manufactured goods, 28% on luxury and demerit goods. Verify the exact rate for your HSN code at gst.gov.in.
How do I file GST returns as an ecommerce seller?
Most ecommerce sellers file GSTR-1 (outward supplies) monthly or quarterly, and GSTR-3B (summary return with tax payment) monthly. You can file through the GSTN portal at gst.gov.in or via licensed GST-filing software. HOD Media generates the invoices with the correct tax breakdowns — you export the data for filing.
What is TCS (Tax Collected at Source) for ecommerce in India?
If you sell through a marketplace (Amazon, Flipkart, Meesho), the marketplace deducts 1% TCS on your net sales and deposits it with the government. This is credited to your GST account and reduces your actual tax liability. If you run your own store (like on HOD Media), TCS does not apply — you collect and remit GST directly.
Does the price I show on my store include or exclude GST?
You can display prices either way — GST-inclusive (MRP style) or GST-exclusive (+18% GST shown at checkout). Most Indian D2C stores display MRP-inclusive prices to match customer expectations. HOD Media handles both: you set whether your product price includes GST, and the invoice shows the GST component separately as required by law.