GST for E-Commerce Sellers in India — Complete Compliance Guide (Amazon, Flipkart, Meesho & D2C 2025)

Introduction: The ₹18 Lakh GST Notice That Almost Killed a Thriving Amazon Business

Priya’s story (real case, name changed):

Priya runs a successful fashion accessories business on Amazon and Flipkart. Started from home in 2021, now ₹4 crore annual sales (2024).

November 2024:

GST Notice arrives: Section 61 (Scrutiny) + Section 73 (Show Cause Notice) — demanding ₹18 lakhs (₹12L tax + ₹6L penalty/interest).

Priya’s panic: “I filed all returns on time! Paid all GST! What’s wrong?”

The 4 mistakes (that Priya didn’t realize were mistakes):

Mistake 1: Never Claimed ITC on Amazon/Flipkart Commission

Amazon charged her ₹48 lakhs commission over 2 years (15% of sales)
Commission includes ₹8.64 lakhs GST (@18%)
Priya thought: “Amazon deducts commission automatically, how can I claim ITC?”
Reality: Commission is a SERVICE to you (fulfillment, platform) → GST invoices available in Seller Central → ITC claimable
Priya never downloaded commission invoices, never claimed ₹8.64L ITC
Dept view: You paid output GST on ₹4Cr sales, but didn’t claim legitimate ITC → Under-utilized ITC = possible suppression → Scrutiny

Mistake 2: Vendor Stopped Filing GSTR-1 (ITC Disallowed)

Priya’s packaging vendor (₹12L invoices) stopped filing GST after 6 months
Priya claimed ₹2.16L ITC (18% on ₹12L)
Initially appeared in GSTR-2B → Priya claimed
Later, vendor didn’t file for 4+ months → ITC disappeared from 2B retroactively
Dept: Reverse ₹2.16L ITC + interest

Mistake 3: GSTR-2B vs. GSTR-3B Mismatch (Over-Claimed ITC)

Priya’s accountant (inexperienced in e-commerce) claimed ₹15L ITC in GSTR-3B
But GSTR-2B showed only ₹12L (₹3L difference)
Reason: Accountant claimed ITC on invoices NOT in 2B (either vendor didn’t file GSTR-1, or wrong GSTIN, or timing mismatch)
Dept: Over-claimed ₹3L ITC → Reverse + 18% interest + penalty

Mistake 4: TCS Reconciliation Ignored (GSTR-8 Mismatch)

Amazon/Flipkart deducted ₹4.2L TCS over 2 years (1% of net taxable supplies)
Priya’s accountant claimed ₹4.2L TCS credit in GSTR-3B
But GSTR-8 (filed by Amazon/Flipkart) showed only ₹3.8L (₹40K difference)
Reason: Accountant calculated TCS on gross sales, but Amazon calculates on net taxable value (after returns, exemptions)
Dept: Over-claimed ₹40K TCS → Reverse

Additional issues found during scrutiny:

Returns/cancellations not properly adjusted (some credit notes not issued)
Inter-state sales: Wrong POS (Place of Supply) on some invoices (customer in Delhi, invoice showed Maharashtra POS → IGST vs. CGST+SGST mismatch)
E-way bills not generated for some high-value shipments (₹1.2L worth jewelry—forgot to generate EWB)

Total demand: ₹18 lakhs (₹12L tax + ₹6L interest/penalty).

After we intervened:

Step 1: Downloaded 2 years of Amazon/Flipkart commission invoices (from Seller Central)
Step 2: Claimed ₹8.64L ITC (filed rectification for past periods—allowed with interest)
Step 3: Vendor ITC: Contacted vendor, got them to file pending returns → ₹2.16L ITC partially restored (₹1.8L allowed, ₹36K disallowed for period vendor never filed)
Step 4: GSTR-2B mismatch: Reversed ₹3L over-claimed ITC (voluntarily paid with interest)
Step 5: TCS reconciliation: Matched GSTR-8, corrected TCS claim (reversed ₹40K)
Step 6: Credit notes issued for returns (adjusted past GSTR-1)
Step 7: POS errors corrected (interest paid on timing differences)

Final settlement: ₹6.5 lakhs paid (vs. ₹18L demanded) + 7 months of stress + ₹2L professional fees.

But saved: ₹11.5 lakhs (because we contested aggressively with documentation).

This happens to 50%+ e-commerce sellers who:

❌ Think “I’m just selling online from home, GST is simple”
❌ Hire general accountants (not e-commerce specialists) → Don’t know marketplace-specific nuances
❌ Never download commission invoices (lose lakhs in ITC)
❌ Don’t reconcile GSTR-2B monthly (ITC time-bombs)
❌ Ignore GSTR-8 (TCS mismatch = notice)
❌ Don’t understand inventory vs. marketplace vs. dropshipping (different tax treatments)

The harsh truth:

E-commerce is the MOST SCRUTINIZED sector under GST because:

💰 High-volume transactions (lakhs of orders/year—any error = lakhs in tax impact)
🤖 100% digital trail (every transaction tracked—GST portal, marketplace portal, payment gateway)
🔗 Multi-party ecosystem (vendor, marketplace, courier, payment gateway—each has GST implications)
📊 Data analytics (Dept cross-checks: Marketplace GSTR-8 vs. Seller GSTR-3B vs. Vendor GSTR-1)
🚨 High ITC claims (e-commerce sellers claim 60-80% ITC—red flag if not justified)

One reconciliation gap = ₹5L-20L+ GST demand + months of litigation.

This comprehensive guide covers:

GST registration for e-commerce sellers (mandatory rules)
TCS (Tax Collected at Source) explained (1% deduction by marketplaces)
E-commerce business models (inventory, marketplace, dropshipping—GST differences)
GST return filing (GSTR-1, 3B, 2B reconciliation, GSTR-8 matching)
Invoicing rules (mandatory fields, e-invoicing)
ITC rules (what you can claim, what you can’t, common mistakes)
Returns & cancellations (credit notes, adjustments)
State-wise delivery & POS (Place of Supply) logic
Common GST mistakes (and how to avoid them)
Monthly compliance checklist (reconciliation-heavy)
Real case studies (good vs. bad e-commerce GST management)

1. GST Registration for E-Commerce Sellers (Mandatory — No Exceptions)

Legal Provision:

Section 24(ix) of CGST Act:
“Every e-commerce operator (if liable) and every person supplying goods or services through an e-commerce operator (other than a supplier of services notified under Section 9(5)) shall be required to be registered under this Act.”

Simple Translation:

If you sell on Amazon, Flipkart, Meesho, Myntra, Ajio, ONDC, etc. → GST registration is MANDATORY.

Even if:

❌ Your turnover is <₹20 lakhs (or <₹40 lakhs if special category state)
❌ You’re selling intra-state only (within one state)
❌ You’re home-based, part-time, or hobbyist

Threshold exemption does NOT apply to e-commerce sellers.

Exception (Very Limited):

If you sell ONLY on your OWN website (not marketplace) + Turnover <₹20L/40L → GST registration not mandatory.

But: Most sellers use marketplaces (Amazon, Flipkart) → Registration mandatory.

Composition Scheme NOT Allowed:

E-commerce sellers CANNOT opt for Composition Scheme (even if turnover <₹1.5Cr).

Why: Composition scheme prohibits inter-state sales; e-commerce is inherently inter-state.

Practical Impact:

Scenario 1: You sell handmade candles on Instagram (own website, bank transfer payments), turnover ₹12L/year.
GST needed? No (below threshold, not using marketplace).

Scenario 2: Same candles, but you list on Amazon, turnover ₹8L/year.
GST needed? Yes (mandatory for marketplace sellers, regardless of turnover).

2. What is TCS Under GST? (Tax Collected at Source — 1% Deduction)

TCS = Tax Collected at Source (marketplace collects tax from seller, deposits to govt, seller gets credit).

Legal Provision:

Section 52 of CGST Act:
E-commerce operators must collect TCS @ 1% (0.5% CGST + 0.5% SGST or 1% IGST) on net value of taxable supplies.

How It Works:

Step 1: You sell ₹10L worth goods on Flipkart (in a month).

Step 2: Returns/cancellations: ₹1L.

Step 3: Net taxable supplies: ₹9L.

Step 4: Flipkart deducts 1% TCS = ₹9,000.

Step 5: Flipkart deposits ₹9,000 to govt (via GSTR-8 filing).

Step 6: This ₹9,000 appears in YOUR GSTR-2B (as TCS credit).

Step 7: You claim ₹9,000 credit in electronic cash ledger (use it to pay future GST liability in GSTR-3B).

TCS Calculation Base:

Net taxable value = Gross sales – Returns – Non-taxable supplies (if any).

Example:

Month	Gross Sales	Returns	Exempt Supplies	Net Taxable	TCS @1%
January	₹12,00,000	₹1,00,000	₹50,000	₹10,50,000	₹10,500

Where TCS Appears:

For Seller:

Marketplace settlement report (Amazon/Flipkart payment summary shows TCS deduction)
GSTR-2B (auto-populated from marketplace’s GSTR-8)
Electronic cash ledger (credit balance—usable for paying GST)

For Marketplace:

GSTR-8 (marketplace files monthly, showing TCS collected from all sellers)

Common Confusion:

Question: “Marketplace deducted ₹10K TCS—is this a cost to me?”

Answer: No. TCS is advance tax credit (not a cost). You get it back when filing GSTR-3B (adjusts against your GST liability).

Example:

Your GST liability (month): ₹50,000
TCS credit available (from GSTR-2B): ₹10,000
Net GST to pay via bank: ₹40,000 (₹50K – ₹10K TCS)

Priya’s TCS Mistake:

Accountant claimed ₹4.2L TCS (calculated on gross sales).
GSTR-8 showed ₹3.8L (calculated on net taxable—after returns).
Dept: Over-claimed ₹40K TCS → Reverse.

Lesson: Always match TCS claim with GSTR-8 (filed by marketplace), not self-calculation.

3. E-Commerce Business Models & GST Treatment

Different models = Different GST implications.

Model A: Inventory Model (You Stock & Sell)

How it works:

You purchase goods (from manufacturers/wholesalers)
Store in your warehouse/home
Sell on Amazon/Flipkart (or own website)
You ship to customer (or via Fulfillment by Amazon—FBA)

GST treatment:

You issue invoice (in your name, with your GSTIN)
You charge GST (12%, 18%, etc.—depending on product HSN)
You file GSTR-1 (declare all sales)
You can claim ITC on:
- Purchase from vendors (inventory)
- Packaging materials
- Courier charges (if you ship)
- Amazon/Flipkart commission (FBA fees, referral fees—18% GST)
- Advertising (Amazon PPC, Flipkart Ads—18% GST)
- Storage (warehouse rent—18% GST)

Example:

Product: T-shirts (HSN 6109, GST 12%)

Monthly:

Purchased 1000 T-shirts @ ₹200 each = ₹2,00,000 (GST: ₹24,000 @12%)
Sold 900 T-shirts @ ₹500 each = ₹4,50,000 (GST: ₹54,000 @12%)

GST liability:

Output GST: ₹54,000
Less: ITC on purchase: ₹24,000
Less: ITC on Amazon commission (₹67,500 @15% of sales = ₹10,125 commission + ₹1,822 GST): ₹1,822
Less: ITC on courier (₹18,000 + ₹3,240 GST): ₹3,240
Net GST payable: ₹24,938

Model B: Marketplace Model (Amazon/Flipkart Fulfillment)

How it works:

Same as inventory model
But fulfillment by Amazon (FBA) or Flipkart (F-Assured)
Marketplace handles storage, packing, shipping

GST treatment:

Same as Model A
Additional ITC: FBA fees, storage fees, pick & pack charges (all have 18% GST)

Model C: Dropshipping Model (Supplier Ships Direct)

How it works:

You list products on Amazon/own website
Customer orders
You forward order to supplier (manufacturer/wholesaler)
Supplier ships directly to customer (you never touch goods)

GST treatment (CRITICAL):

Invoice chain:

Supplier → You: Supplier issues invoice (with GST) in YOUR name (you’re the buyer)
You → Customer: You issue invoice (with GST) in CUSTOMER’s name (you’re the seller)

Two separate transactions:

Supplier sells to You: GST charged by supplier, you can claim ITC
You sell to Customer: GST charged by you, you pay to govt

Example:

Supplier sells to you: ₹1,000 (product) + ₹180 GST @18% = ₹1,180
You sell to customer: ₹1,500 (product) + ₹270 GST @18% = ₹1,770

GST calculation:

Output GST: ₹270
Less: ITC (from supplier): ₹180
Net GST payable: ₹90

Common dropshipping mistake:

Wrong: Customer orders ₹1,500 product, you ask supplier to ship directly, supplier invoices customer directly (in customer’s name).
Problem: You have NO purchase invoice (can’t claim ITC) + You issued sales invoice (GST liability) → Pay full GST without ITC.

Correct: Supplier must invoice YOU (even if shipping to customer address). You maintain two invoices (purchase from supplier, sale to customer).

Model D: Print-on-Demand / Custom Products (Printful, Printify, etc.)

How it works:

Customer orders customized product (T-shirt with custom print, mug with photo)
You forward design to POD partner
POD partner prints, packs, ships to customer

GST treatment:

Same as dropshipping
POD partner = Supplier (invoices you with GST)
You = Seller (invoice customer with GST)

Model E: ONDC (Open Network for Digital Commerce)

How it works:

New govt-backed e-commerce network
Decentralized (not controlled by Amazon/Flipkart)
Sellers list on ONDC network (via Buyer Apps like Paytm, PhonePe)

GST treatment:

Same as marketplace model
TCS: Collected by Network Participant (Seller NP or Buyer NP—depending on contract)
GSTR-8: Filed by Network Participant
Seller compliance: Same (GSTR-1, 3B, reconcile 2B, claim TCS)

4. GST Return Filing for E-Commerce Sellers (Monthly Grind)

E-commerce sellers file SAME returns as any GST-registered business, but reconciliation is 10x more complex.

Monthly Returns:

GSTR-1 (Outward Supplies — Due by 11th of Next Month)

What to include:

All sales (order-wise or consolidated)
B2B sales (if any—invoice-wise details)
B2C sales (state-wise summary—>₹2.5L/invoice, invoice-wise; <₹2.5L, consolidated)
Credit notes (for returns/cancellations)

For e-commerce:

Download sales report from Amazon/Flipkart (month-wise)
Match with your accounting software (Tally, Zoho, etc.)
Ensure all orders included (don’t miss any—dept cross-checks with marketplace GSTR-8)

GSTR-3B (Summary Return + Tax Payment — Due by 20th of Next Month)

Key sections:

Table 3.1: Outward taxable supplies (from GSTR-1)
Table 4: ITC claimed (from GSTR-2B—MUST MATCH)
Table 6: Interest/late fees/penalty (if any)

Critical for e-commerce:

ITC claimed in GSTR-3B MUST NOT EXCEED ITC available in GSTR-2B (auto-validation from April 2025 onwards—system won’t allow over-claiming)
TCS credit: Auto-adjusts in electronic cash ledger (use to pay GST liability)

GSTR-2B (Auto-Generated, Available by 14th)

What it is: Auto-populated list of ITC available (based on suppliers’ GSTR-1 filings).

For e-commerce sellers, includes:

Vendor invoices (inventory purchases, packaging)
Amazon/Flipkart commission invoices (if marketplace filed GSTR-1)
Courier partner invoices
Advertising invoices (Amazon Ads, etc.)
TCS credit (from marketplace’s GSTR-8)

MUST RECONCILE: GSTR-2B vs. Your purchase register (invoice-wise matching).

Priya’s mistake: Accountant claimed ₹15L ITC in GSTR-3B, but GSTR-2B showed only ₹12L → Over-claimed ₹3L → Notice.

Quarterly Returns:

None (e-commerce sellers must file monthly—cannot opt for quarterly scheme).

Annual Returns:

GSTR-9 (Annual Return — Due by Dec 31 of Next FY)

Consolidates 12 months: All sales, purchases, ITC claimed, tax paid.

Reconciliation: GSTR-9 vs. Books vs. GSTR-1/3B (all must match).

GSTR-9C (Reconciliation Statement + CA Certification — If Turnover >₹5Cr)

Mandatory for e-commerce sellers with ₹5Cr+ turnover.

Contains:

Books of accounts vs. GSTR-9 reconciliation
Reasons for differences (if any)
CA certification (attesting reconciliation is correct)

Cost: ₹25,000 – ₹75,000 (CA fees for GSTR-9C).

5. Invoicing Rules for E-Commerce Sellers

Mandatory Invoice Fields:

Standard GST invoice requirements:

✅ Invoice number (sequential)
✅ Invoice date
✅ Customer name, address, GSTIN (if B2B)
✅ Your GSTIN
✅ HSN code (2-digit if turnover <₹5Cr, 4-digit if ₹5Cr+)
✅ Product description
✅ Quantity
✅ Rate, taxable value
✅ GST rate (CGST, SGST, IGST)
✅ Total amount
✅ Place of Supply (state code)

Additional for e-commerce:

✅ Marketplace Order ID (Amazon Order ID, Flipkart Order ID—critical for audit trail)
✅ Shipment tracking number (if applicable)

Why Order ID matters: Dept cross-checks: Your invoice → Marketplace GSTR-8 (does Order ID exist in marketplace data? Was TCS collected?).

E-Invoicing (Mandatory for ₹5Cr+ Turnover):

If your turnover in ANY financial year >₹5 crores → E-invoicing mandatory from next FY.

Process:

Generate invoice in accounting software
Upload to IRP (Invoice Registration Portal)
Get IRN (Invoice Reference Number) + QR code
Send to customer (invoice must have IRN + QR)

Non-compliance: Invoice invalid (customer can’t claim ITC if B2B).

For e-commerce:

Most sellers use Amazon/Flipkart auto-invoicing (Amazon generates invoice on your behalf if opted)
But: You’re responsible for ensuring invoices are GST-compliant (check monthly)

6. ITC Rules for E-Commerce Sellers (High ITC = High Scrutiny)

E-commerce sellers typically claim 60-80% ITC (high compared to other sectors—20-40%).

Why high ITC:

Inventory purchased with GST (18%)
Commission (18%)
Advertising (18%)
Courier (18%)
Packaging (18%)
Output GST (12-18%)

Result: ITC often close to output tax → Low net GST payment → Red flag for dept → Scrutiny.

ITC You CAN Claim:

✅ Inventory purchases (from vendors—if invoice in 2B)
✅ Marketplace commission (Amazon referral fees, FBA fees, Flipkart commission—download invoices from Seller Central)
✅ Advertising (Amazon PPC, Flipkart Ads, Google Ads with GST invoice)
✅ Courier/logistics (if you ship yourself, or FBA shipping included in commission)
✅ Packaging materials (boxes, bubble wrap, tape—if purchased with GST)
✅ Warehouse rent (if GST invoice, commercial property)
✅ Professional fees (CA, tax advisor—18% GST)
✅ Software (accounting software, inventory management tools—18% GST)

ITC You CANNOT Claim (Blocked):

❌ Free samples given to customers (Section 17(5)(h)—goods given free/disposed = ITC reversed)
❌ Goods lost/stolen/destroyed (ITC must be reversed)
❌ Personal use goods (if bought for business but used personally—strict segregation needed)
❌ Motor vehicles (unless goods carriage vehicle)
❌ Food/beverages (unless outward supply is food service)

Priya’s Biggest Mistake: Not Claiming Commission ITC

Amazon charged ₹48L commission over 2 years (15% of ₹3.2Cr sales).

GST on commission: ₹8.64 lakhs (18% on ₹48L).

Priya never claimed this ₹8.64L ITC (didn’t even know commission invoices exist).

Where commission invoices are:

Amazon: Seller Central → Reports → Payments → Transaction View → Download “Tax Invoice” (monthly)
Flipkart: Seller Hub → Payments → Invoice (download monthly)

Impact: Lost ₹8.64L cash (could’ve been used to offset GST liability).

Common ITC Issues in E-Commerce:

Issue 1: Vendor Stopped Filing (ITC Disappears)

What happens:

You claimed ITC on ₹10L invoice (vendor’s invoice in your 2B)
4 months later, vendor stops filing GSTR-1
Your GSTR-2B retroactively adjusted (ITC removed)
Dept notice: Reverse ITC + interest

Prevention: Monthly vendor compliance tracker (check if top 20 vendors filing GSTR-3B).

Issue 2: Packaging Vendor Unregistered (No ITC)

What happens:

You buy ₹5L packaging from small vendor (unregistered)
No GST invoice → No ITC
Loss: ₹90K ITC (18% on ₹5L)

Prevention: Insist on GST-registered vendors (even if they charge slightly more, ITC offsets).

Issue 3: GSTR-2B vs. GSTR-3B Mismatch (Over-Claiming)

What happens:

Accountant claims ₹20L ITC in GSTR-3B
GSTR-2B shows only ₹18L
Dept: Over-claimed ₹2L → Reverse + interest

Prevention: ALWAYS match GSTR-3B ITC with GSTR-2B (invoice-wise reconciliation before filing).

7. Returns & Cancellations (Credit Notes)

E-commerce has HIGH return rates (fashion: 30-40%, electronics: 10-20%).

GST treatment critical.

When Customer Returns:

Step 1: Customer returns product (within 7-30 days—marketplace policy).

Step 2: Marketplace processes return (refunds customer).

Step 3: You issue Credit Note (against original invoice).

Credit Note must include:

Original invoice number, date
Reason for return
Credit note number, date
Revised taxable value, GST

Step 4: Adjust in GSTR-1 (Table 9B—Credit/Debit Notes).

Step 5: Reduce outward supply value in GSTR-3B (in month credit note issued).

Example:

January: Sold product for ₹10,000 + ₹1,800 GST = ₹11,800 (declared in Jan GSTR-1).

February: Customer returned.

Credit Note issued: ₹10,000 + ₹1,800 GST (Feb).

Feb GSTR-1: Show credit note in Table 9B (reduces taxable turnover by ₹10,000, GST by ₹1,800).

Feb GSTR-3B: Outward supply reduced (net of credit notes).

ITC Reversal on Returns:

If goods returned are unsellable (damaged, used) → Reverse ITC (that you claimed when purchasing).

If goods returned are resellable (unopened, good condition) → ITC retained (you can resell).

Marketplace Auto-Adjustments:

Most marketplaces (Amazon, Flipkart) auto-adjust:

Refund customer
Reduce your settlement amount
Adjust TCS (if return reduces net taxable value)

But YOU must:

Issue credit notes manually (marketplaces don’t issue on your behalf)
Reflect in GSTR-1
Reconcile (marketplace report vs. your GSTR-1)

8. State-Wise Delivery & Place of Supply (POS) Logic

E-commerce = Inter-state sales = IGST complications.

Place of Supply (POS) Determines Tax Type:

If seller state = buyer state: CGST + SGST
If seller state ≠ buyer state: IGST

Example:

Seller: Maharashtra (you)
Buyer 1: Maharashtra → CGST 9% + SGST 9% (total 18%)
Buyer 2: Delhi → IGST 18%

POS for E-Commerce:

Rule: POS = Location where goods delivered (buyer’s shipping address).

Not: Billing address (if different).

Example:

Buyer: Lives in Mumbai (Maharashtra), but wants product delivered to friend in Bangalore (Karnataka).

Shipping address: Bangalore (Karnataka).

POS: Karnataka → IGST (even though buyer is Maharashtra-based).

Common POS Mistakes:

Mistake: Invoice shows POS as Maharashtra (seller’s state) for all orders (because accounting software default).

Reality: 60% orders shipped to other states (POS should be respective states).

Result: CGST+SGST charged instead of IGST → Mismatch → Notice.

Prevention: Accounting software must auto-detect POS based on shipping address (most e-commerce tools do this—ensure configured correctly).

9. Common GST Mistakes by E-Commerce Sellers (Top 10)

❌ Mistake 1: Not Claiming Marketplace Commission ITC

Loss: ₹5L-20L over 2-3 years (15-20% of commission is GST—never claimed).

Fix: Download commission invoices monthly from Amazon Seller Central / Flipkart Seller Hub → Enter in books → Claim ITC.

❌ Mistake 2: Ignoring GSTR-2B Reconciliation

Problem: Claiming ITC without checking if invoice in 2B → Over-claiming → Notice.

Fix: Before filing GSTR-3B (by 20th), download GSTR-2B (available 14th) → Match invoice-wise → Claim only matched ITC.

❌ Mistake 3: Not Tracking Vendor Compliance

Problem: Vendor stops filing GSTR-1 after 6 months → Your ITC disallowed retroactively.

Fix: Monthly vendor tracker (check top 20-30 vendors—are they filing GSTR-3B? on GST portal, search GSTIN → filing status visible).

❌ Mistake 4: Wrong POS (Place of Supply)

Problem: All invoices show seller’s state as POS → IGST vs. CGST+SGST mismatch.

Fix: Ensure accounting software captures shipping state → Auto-calculates POS.

❌ Mistake 5: Not Issuing Credit Notes for Returns

Problem: Returns processed, customer refunded, but no credit note issued → Overstated turnover → Pay GST on returned goods.

Fix: Monthly return reconciliation (marketplace return report vs. credit notes issued).

❌ Mistake 6: Mixing Personal & Business Purchases

Problem: Ordered ₹2L goods (₹1.5L business, ₹50K personal—gifts, home use), claimed full ₹36K ITC (18% on ₹2L).

Dept: Personal use ITC not allowed → Reverse ₹9K (18% on ₹50K) + penalty.

Fix: Strict segregation (separate bank accounts, separate GST bills—don’t order personal items on business GSTIN).

❌ Mistake 7: Multi-State Operations Without Multiple GST Registrations

Problem: You’re in Maharashtra, but storing inventory in Amazon warehouses in Delhi, Bangalore, Hyderabad.

Rule: Additional place of business = Need separate GST registration in each state (where warehouse is).

Non-compliance: ₹10K penalty per state + ITC disallowance.

Fix: Register in all states where you have inventory/warehouse (even if Amazon warehouse—check with Amazon support which states your inventory is in).

❌ Mistake 8: No Order-ID Mapping

Problem: Sold 5000 orders/month, but accounting software has bulk entries (no order-wise breakup).

Audit: Dept asks: “Show Order ID 123-456-789 invoice” → You can’t → Suspicion of fake sales.

Fix: Maintain order-wise mapping (Excel or software—Order ID, Invoice No., Amount, GST, Date).

❌ Mistake 9: Not Reconciling GSTR-8 (TCS Mismatch)

Problem: You calculated TCS (on gross sales), claimed ₹10K credit.
Marketplace GSTR-8 shows ₹8.5K (calculated on net taxable—after returns).
Dept: Over-claimed ₹1.5K TCS → Reverse.

Fix: Don’t self-calculate TCS—download GSTR-2B (TCS auto-populated from marketplace’s GSTR-8) → Claim exactly what’s in 2B.

❌ Mistake 10: Delaying GST Filing (Missing Deadlines)

Problem: Filed GSTR-1 on 15th (4 days late—due 11th).

Penalty: ₹200/day (₹100 CGST + ₹100 SGST) = ₹800 late fee (for 4 days).

Plus: Interest on late GSTR-3B payment (18% p.a. on tax amount).

Fix: Set reminders (GST calendar)—file by 10th (1 day buffer before deadline).

10. E-Commerce GST Compliance Checklist (Monthly Reconciliation-Heavy)

This is THE most important section (follow religiously = zero notices).

☑️ By 5th of Every Month:

1. Download All Marketplace Reports:

Amazon: Settlement report, Transaction report, Tax invoice (commission), Ads invoice
Flipkart: Payment report, TCS report, Commission invoice
Courier: Shipping invoices (if separate)

2. Download GSTR-2B:

3. Match Vendor Invoices:

Your purchase register (inventory, packaging) vs. GSTR-2B (invoice-wise matching)
Note mismatches (invoices not in 2B = don’t claim ITC yet)

4. Vendor Compliance Check:

Top 30 vendors: Did they file GSTR-3B last month? (Check on GST portal)
If no → Follow up, don’t claim their ITC

☑️ By 10th of Every Month:

5. Prepare & File GSTR-1:

Sales data from marketplace reports → Import to accounting software
Include credit notes (for returns)
B2B vs. B2C segregation (if any B2B sales)
File online (by 11th deadline)

6. Commission ITC:

Download Amazon/Flipkart commission invoices (from Seller Central/Hub)
Enter in books (service purchase—18% GST)
These invoices will appear in NEXT month’s 2B (timing—marketplace files their GSTR-1 later)

☑️ By 18th of Every Month:

7. GSTR-2B Final Reconciliation:

GSTR-2B vs. Purchase register (invoice-wise)
ITC to claim = Only invoices in 2B (with your GSTIN, correctly reflected)
Prepare ITC summary (category-wise: inventory, commission, ads, courier, packaging)

8. TCS Reconciliation:

GSTR-2B Section 10 (TCS credit) vs. Marketplace TCS report
Claim exactly what’s in GSTR-2B (not self-calculated amount)

9. Returns & Credit Notes:

Marketplace return report vs. Credit notes issued
Any pending credit notes? Issue now
Ensure returns adjusted in GSTR-1 (Table 9B)

☑️ By 20th of Every Month:

10. File GSTR-3B:

Table 3.1: Outward supply (from GSTR-1—net of credit notes)
Table 4: ITC (from reconciliation—MUST match GSTR-2B)
Pay GST liability (output tax – ITC – TCS credit = net payable)
File online (by 20th deadline)

☑️ Quarterly:

11. Profitability Analysis:

Marketplace commissions (15-20% of sales—check if rate increased)
Advertising spend vs. sales (ROI—should be <10% for profitability)
ITC utilization (are you claiming all eligible ITC?)

12. Inventory Reconciliation:

Physical stock vs. Books (SKU-wise)
Damaged/expired stock (reverse ITC if destroyed)

13. E-Invoice Threshold Check:

Has your turnover crossed ₹5Cr (any FY)? → E-invoicing mandatory from next FY

☑️ Annually:

14. GSTR-9 (Annual Return):

Consolidate 12 months (all sales, ITC, tax paid)
Reconcile with books
File by Dec 31

15. GSTR-9C (If Turnover >₹5Cr):

Engage CA (₹25K-75K fee)
Reconciliation statement (books vs. GSTR-9)
CA certification

16. Full TCS Reconciliation:

Annual: Total TCS deducted (marketplace reports) vs. Total TCS claimed (GSTR-3B) vs. GSTR-8 (marketplace filings)
Differences? Investigate, correct

17. Vendor Compliance Audit:

Annual review: Which vendors stopped filing mid-year? (ITC risk)
Any fake vendors? (verify genuineness—physical existence, business activity)

11. Real Case Studies (Good vs. Bad E-Commerce GST Management)

Case Study A: Dropshipper (Good Compliance) ✅

Profile: Dropshipping business (home décor), ₹60L annual sales (Amazon, own website).

Setup:

Hired e-commerce CA (₹8K/month)
Monthly reconciliation (5th: download reports, 10th: file GSTR-1, 18th: reconcile 2B, 20th: file 3B)
Downloaded commission invoices monthly (claimed ₹60K ITC annually—12% of ₹5L commission)
Vendor compliance tracker (5 main suppliers—all compliant)
Order-wise mapping (Excel—Order ID, Invoice, Amount)

Result:

✅ Zero GST notices (2 years running)
✅ Full ITC claimed (₹1.2L annually—on purchases + commission + ads)
✅ CA fees ₹96K/year (but saved ₹1L+ in ITC optimization + zero penalty risk)
✅ When applied for business loan: Bank impressed with clean GST compliance → Loan approved (₹10L OD limit)

Case Study B: Fashion Seller (Poor Compliance—Lost ₹18L) ❌

Profile: Priya (from introduction)—fashion accessories, ₹4Cr sales.

Mistakes:

❌ General accountant (not e-commerce specialist)—₹3K/month (cheap, but costly mistakes)
❌ Never downloaded commission invoices (lost ₹8.64L ITC over 2 years)
❌ No vendor compliance tracking (₹2.16L ITC disallowed when vendor stopped filing)
❌ Over-claimed ITC (₹3L—GSTR-3B > GSTR-2B)
❌ TCS mismatch (₹40K over-claimed)
❌ No credit notes for returns (overstated turnover)

Result:

❌ GST notice: ₹18L demand
❌ 7 months stress (meetings, submissions, appeals)
❌ ₹6.5L paid (after negotiation—still huge loss)
❌ ₹2L professional fees (to fix mess)
❌ Business growth stalled (time spent on notice, not scaling)

Lesson: “Cheap accountant” cost ₹8.5L (₹6.5L paid + ₹2L fees) + 7 months stress. Should’ve hired e-commerce CA for ₹10K/month (₹2.4L over 2 years—saved ₹6L+).

Case Study C: Electronics Seller (Vendor Fraud Saved by Vigilance) ✅

Profile: Electronics accessories (mobile covers, chargers), ₹2Cr sales.

Incident:

Vendor (₹20L invoices) stopped filing GSTR-1 after 4 months
Seller’s monthly compliance check (5th of month) caught this in Month 5
Immediate action: Stopped claiming ITC from this vendor (Month 5 onwards)
Contacted vendor: “File your returns or we stop orders”
Vendor filed pending returns (had cash flow issue, delayed)
ITC restored in GSTR-2B (Month 6)

Saved: ₹3.6L ITC (18% on ₹20L—would’ve been disallowed if seller kept claiming without checking vendor compliance).

System: Monthly vendor tracker (15 mins on 5th of month—check top 10 vendors’ GSTR-3B filing status on GST portal).

12. Conclusion: E-Commerce GST = Reconciliation Discipline

Key Takeaways:

✅ GST registration mandatory (even if turnover <₹20L, if selling on marketplaces)
✅ TCS is credit, not cost (1% deducted by marketplace, claim in GSTR-3B via electronic cash ledger)
✅ Commission ITC = Biggest missed opportunity (download invoices monthly from Seller Central/Hub)
✅ GSTR-2B reconciliation non-negotiable (claim ITC only on invoices in 2B—monthly matching)
✅ Vendor compliance = Your responsibility (if vendor doesn’t file, your ITC gone—track monthly)
✅ Returns = Credit notes mandatory (adjust in GSTR-1, reduce turnover, don’t overpay GST)
✅ POS accuracy critical (shipping state = POS, not seller state—IGST vs. CGST+SGST)
✅ Multi-state inventory = Multi-state GST reg (Amazon warehouses in 4 states? Need 4 registrations)
✅ Order-wise mapping (maintain trail—Order ID, Invoice, Amount—audit-ready)
✅ Monthly compliance (not quarterly, not annual—e-commerce needs MONTHLY reconciliation)

What good e-commerce GST compliance gives you:

✅ Full ITC claimed (save ₹5L-20L annually—commission + ads + packaging)
✅ Zero notices (reconciliation prevents 95% issues)
✅ Cash flow optimization (TCS credit used immediately, not stuck)
✅ Scalability (clean GST = investor/bank confidence, loans approved)
✅ Peace of mind (sleep peacefully, no midnight “notice aaya” calls)

What poor compliance costs:

❌ ITC losses (₹5L-20L over 2-3 years—commission/ads never claimed)
❌ Notices (₹5L-50L demands—vendor non-compliance, over-claiming, TCS mismatch)
❌ Penalties (50-100% of tax—₹10L demand = ₹20L total with penalty)
❌ Time sink (6-12 months dealing with notices, appeals—time away from growing business)
❌ Reputation damage (GST notice = bank loan rejected, Amazon may suspend account if serious non-compliance)

Final word for e-commerce founders:

“E-commerce GST is NOT filing returns—it’s RECONCILING 10 data sources monthly.”

Sources:

Amazon/Flipkart settlement report
Commission invoices
Ads invoices
Vendor purchase invoices
Courier invoices
GSTR-2B
GSTR-8 (TCS)
Return reports
Order-wise mapping
Accounting software (books)

If even ONE source is out of sync → Notice.

Set up systems NOW:

Monthly reconciliation calendar
Vendor compliance tracker
Commission invoice download routine
GSTR-2B matching before 3B filing
Order-wise documentation

By doing this, you’ll avoid 90%+ issues that plague e-commerce sellers.

Sell fearlessly. Comply smartly.

FAQs: GST for E-Commerce Sellers (30 Essential Questions)

Q1: Is GST registration mandatory for selling on Amazon/Flipkart?

A: Yes, absolutely. Section 24(ix) CGST Act makes GST registration mandatory for all e-commerce sellers (Amazon, Flipkart, Meesho, etc.), regardless of turnover (even if <₹20 lakhs). No exceptions. Threshold exemption doesn’t apply.

Q2: Can I sell on Amazon without GST registration?

A: No. Amazon/Flipkart require GST registration to onboard sellers (except for specific categories like handmade/handicrafts on Amazon Karigar—check with marketplace). Even if you manage to list, you’re legally required to register (non-compliance = penalty ₹10,000 or 10% of turnover, whichever higher).

Q3: What is TCS in e-commerce GST?

A: TCS (Tax Collected at Source) = Marketplace (Amazon/Flipkart) collects 1% GST (0.5% CGST + 0.5% SGST) on your net taxable supplies (gross sales – returns – exemptions). Deposited to govt (via GSTR-8). You get credit (appears in GSTR-2B) → Use to pay GST liability. It’s NOT a cost—it’s advance tax credit.

Q4: How is TCS calculated?

A: TCS = 1% of net taxable value.

Net taxable value = Gross sales – Returns – Non-taxable supplies.

Example: Gross sales ₹10L, returns ₹1L, exempt supplies ₹50K → Net taxable = ₹8.5L → TCS = ₹8,500 (1% of ₹8.5L).

Marketplace calculates and deducts from your settlement.

Q5: Where can I see TCS deducted?

Marketplace settlement report (Amazon Payment Dashboard, Flipkart Payment Summary—shows TCS deduction)
GSTR-2B (auto-populated from marketplace’s GSTR-8—Section 10: TCS Credit)
Electronic cash ledger (GST portal—credit balance)

Always match TCS claim with GSTR-2B (don’t self-calculate).

Q6: Can I claim ITC on Amazon/Flipkart commission?

A: Yes, absolutely! Amazon/Flipkart commission (referral fees, FBA fees, advertising) includes 18% GST. You can claim ITC.

How:

Download commission invoice monthly (Amazon Seller Central → Reports → Payments → Tax Invoice; Flipkart Seller Hub → Payments → Invoice)
Enter in books as service purchase
Claim ITC in GSTR-3B (these invoices appear in GSTR-2B—usually 1-2 months after commission charged)

Lost opportunity: Many sellers don’t know this—lose ₹5L-20L ITC over 2-3 years.

Q7: What is GSTR-2B and why is it important for e-commerce sellers?

A: GSTR-2B = Auto-generated statement of ITC available (based on suppliers’ GSTR-1 filings).

For e-commerce sellers, includes:

Vendor invoices (inventory, packaging)
Amazon/Flipkart commission invoices
Courier, ads invoices
TCS credit (from GSTR-8)

Why critical: ITC claimed in GSTR-3B MUST match GSTR-2B (from April 2025, system auto-validates—won’t allow over-claiming). Claiming ITC not in 2B = Notice.

Q8: How often should I reconcile GSTR-2B?

A: Every month, before filing GSTR-3B (by 20th).

Process:

Download GSTR-2B (available from 14th)
Match with your purchase register (invoice-wise)
Claim ITC only on invoices present in 2B
Note mismatches (invoices not in 2B = vendor didn’t file GSTR-1 OR wrong GSTIN OR timing issue)
Follow up with vendors for mismatches

Frequency: Monthly, without exception.

Q9: What happens if my vendor doesn’t file GSTR-1?

A: Invoice won’t appear in your GSTR-2B → You can’t claim ITC (even if you paid vendor with GST).

Timeline:

Month 1: Vendor files GSTR-1 → Invoice in your Month 2 GSTR-2B
Month 2: Vendor doesn’t file → Invoice NOT in Month 3 GSTR-2B

If you claimed ITC anyway (without checking 2B): Dept will issue notice → Reverse ITC + interest + penalty.

Prevention: Monthly vendor compliance tracker (check if vendor filed GSTR-3B).

Q10: What is the difference between inventory model and dropshipping for GST?

Aspect	Inventory Model	Dropshipping
Stock	You hold stock	Supplier ships direct
Invoice chain	Vendor → You (purchase), You → Customer (sale)	Same (2 invoices)
GST liability	On your sales	On your sales
ITC	On purchases, commission, ads, courier	On supplier invoice, commission, ads
Key risk	Vendor compliance	Must ensure supplier invoices YOU (not customer directly)

Both models: You charge GST to customer, you file GSTR-1/3B, you claim ITC.

Q11: Do I need separate GST registration if I sell from multiple states?

A: Yes, if you have “additional place of business” in other states.

“Additional place of business” = Warehouse, inventory storage, office.

Example: You’re in Maharashtra, but Amazon stores your inventory in warehouses in Delhi, Bangalore, Hyderabad → You need 4 GST registrations (1 Maharashtra + 3 other states).

Non-compliance: ₹10K penalty per state + ITC disallowance.

Check: Amazon Seller Central → Inventory → Where is your stock stored? (FBA Multi-Channel Fulfillment shows warehouse locations).

Q12: What returns do e-commerce sellers need to file monthly?

A: 2 monthly returns:

GSTR-1 (by 11th of next month)—Sales details
GSTR-3B (by 20th of next month)—Summary + tax payment

Annual: 3. GSTR-9 (by Dec 31 of next FY)—Annual return 4. GSTR-9C (if turnover >₹5Cr)—Reconciliation + CA certification

Note: E-commerce sellers cannot opt for quarterly filing (must file monthly).

Q13: Is e-invoicing mandatory for e-commerce sellers?

A: Yes, if turnover >₹5 crores (in any FY).

From when: Next FY onwards (e.g., if turnover crossed ₹5Cr in FY 2024-25, e-invoicing mandatory from FY 2025-26).

Process: Generate invoice → Upload to IRP → Get IRN + QR code → Send to customer.

For e-commerce: Most sellers use marketplace auto-invoicing (check if marketplace supports e-invoicing on your behalf).

Q14: What is Place of Supply (POS) for e-commerce sales?

A: POS = Shipping address (where goods delivered to customer).

NOT billing address (if different).

Example: Customer lives in Mumbai, orders product, wants delivery to friend in Delhi → POS = Delhi (shipping address).

Tax implication:

If seller in Maharashtra, shipping to Delhi → IGST (inter-state)
If seller in Maharashtra, shipping to Maharashtra → CGST + SGST (intra-state)

Common mistake: Invoice shows seller’s state as POS for all orders → Wrong tax type → Notice.

Q15: How to handle returns in GST?

A: Issue Credit Note:

Step 1: Customer returns product (marketplace processes refund)

Step 2: You issue credit note (against original invoice)—includes original invoice no., date, reason, revised value, GST

Step 3: Report in GSTR-1 Table 9B (Credit/Debit Notes)

Step 4: Reduce outward supply in GSTR-3B (in month credit note issued)

ITC reversal: If goods unsellable (damaged), reverse ITC. If resellable, retain ITC.

Q16: Can I use Composition Scheme for e-commerce business?

A: No. E-commerce sellers are NOT eligible for Composition Scheme (even if turnover <₹1.5Cr).

Reason: Composition prohibits inter-state sales; e-commerce is inherently inter-state.

Q17: What is GSTR-8 and how does it affect me?

A: GSTR-8 = Return filed by marketplace (Amazon/Flipkart) showing TCS collected from all sellers.

Filed by: Marketplace (not you).

How it affects you: TCS shown in marketplace’s GSTR-8 → Auto-populates in your GSTR-2B (Section 10) → You claim this TCS credit in GSTR-3B.

Reconciliation: Your books TCS (from marketplace settlement report) vs. GSTR-2B TCS (from GSTR-8) → Should match.

Q18: What are common ITC blocks for e-commerce sellers?

A: ITC NOT allowed on:

❌ Free samples given to customers
❌ Goods lost/stolen/damaged (must reverse ITC)
❌ Personal use goods (bought on business GSTIN but used personally)
❌ Motor vehicles (unless goods carriage—delivery van OK, personal car NOT OK)
❌ Food/beverages (unless you’re in food business)

Q19: How much ITC can e-commerce sellers typically claim?

A: 60-80% of output GST (high compared to other sectors—20-40%).

Why high:

Inventory: 18% GST
Commission: 18% GST (15-20% of sales = huge ITC)
Ads: 18% GST
Courier: 18% GST
Packaging: 18% GST

Output GST: 12-18% (on products).

Result: ITC often 60-80% of output → Low net GST payment.

Dept view: High ITC = Scrutiny (ensure all legitimate, documented, in 2B).

Q20: What is the penalty for late GST filing?

Return	Late Fee	Interest
GSTR-1	₹200/day (₹100 CGST + ₹100 SGST), max ₹5,000	No interest (only late fee)
GSTR-3B	₹50/day (₹25 CGST + ₹25 SGST) if nil return; ₹200/day if tax payable	18% p.a. on tax amount (from due date to payment date)

Example: GSTR-3B due 20th Jan, filed 25th Jan (5 days late), tax payable ₹50,000.

Late fee: ₹1,000 (₹200 × 5 days)
Interest: ₹123 approx (18% p.a. on ₹50K for 5 days)
Total: ₹1,123 penalty (for 5-day delay).

Q21: How to download Amazon commission invoices?

A: Amazon Seller Central:

Login → Reports → Payments
Select period (month)
Transaction View → Download
Look for “Service Fees” / “FBA Fees” / “Advertising”
Click “Tax Invoice” (download PDF/Excel)

These invoices have:

Amazon GSTIN
Your GSTIN
Service description (referral fee, FBA fee, etc.)
Amount + 18% GST

Frequency: Download monthly (by 5th of next month, after settlement).

Q22: How to download Flipkart commission invoices?

A: Flipkart Seller Hub:

Login → Payments
Select period
Invoice tab
Download (commission invoice, marketplace fee invoice)

Same process: Monthly download, enter in books, claim ITC.

Q23: What is the biggest GST mistake e-commerce sellers make?

A: Not claiming marketplace commission ITC (Amazon/Flipkart fees).

Loss: ₹5L-20L over 2-3 years (15-20% commission with 18% GST = ₹2.7-3.6L ITC/year on ₹1Cr sales).

Why it happens: Sellers don’t know commission invoices exist (marketplace deducts automatically, sellers think “no invoice”).

Reality: Invoices available in Seller Central/Hub (must download monthly).

Q24: Can I sell on my own website without GST registration?

A: Yes, if:

Turnover <₹20 lakhs (or <₹40 lakhs if special category state)
Selling only within one state (intra-state)
Not using any marketplace (Amazon, Flipkart, payment aggregators acting as marketplace)

But: Once turnover crosses threshold OR you sell inter-state → GST mandatory.

Q25: What happens if I over-claim ITC (more than GSTR-2B)?

A: Dept will issue notice: Reverse excess ITC + 18% interest + penalty (up to 100% of tax).

Example: GSTR-2B shows ₹10L ITC, you claimed ₹12L in GSTR-3B (₹2L excess).

Notice: Reverse ₹2L + interest ₹18K (6 months @18% p.a.) + penalty ₹2L (if willful) = Total ₹4.18L.

From April 2025: System auto-validates (won’t allow claiming >GSTR-2B).

Q26: How to track vendor compliance monthly?

A: Simple Excel tracker:

Vendor	GSTIN	Jan Filed?	Feb Filed?	Mar Filed?	Risk
ABC Suppliers	27XXX	✅	✅	✅	🟢 Low
XYZ Packaging	29YYY	✅	❌	❌	🔴 High

How to check: GST portal → Search Taxpayer → Enter GSTIN → View filing status (shows GSTR-3B filed or not).

Action: If vendor doesn’t file 2+ months → Stop claiming ITC from them OR follow up, get them to file.

Time: 15 mins/month (5th of month—check top 10-20 vendors).

Q27: What is order-wise mapping and why is it needed?

A: Order-wise mapping = Linking marketplace Order ID with your invoice number, amount, GST.

Format (Excel):

Date	Marketplace	Order ID	Invoice No	Amount	GST	Customer State
01-Jan	Amazon	123-456-789	INV/001	₹1,000	₹180	Delhi

Why needed:

Audit: Dept may ask: “Show invoice for Order ID 123-456-789” → You can produce immediately
Reconciliation: Marketplace report (order-wise) vs. Your GSTR-1 (invoice-wise) → Match
Disputes: Customer claims didn’t receive goods (Order ID trace)

Without: Dept suspects fake sales (can’t prove orders genuine).

Q28: How to handle mixed B2B and B2C sales on marketplaces?

A: Most e-commerce = B2C (selling to end consumers).

But if some B2B (selling to registered businesses—they provide GSTIN):

GSTR-1 reporting:

B2B sales: Table 4A (invoice-wise details—customer GSTIN, invoice no., amount, GST)
B2C sales: Table 7 (state-wise summary—no customer details needed)

ITC impact: B2B customers can claim ITC (only if your invoice is in GSTR-1 + you filed). B2C customers can’t claim (end consumers).

Practical: Ensure B2B invoices have customer GSTIN (marketplace usually captures if customer provides during order).

Q29: What is the GST rate for e-commerce products?

A: Depends on HSN code (product classification).

Common rates:

5%: Essential goods (some food items, healthcare)
12%: Processed foods, some garments
18%: Most goods (electronics, accessories, home goods, garments)
28%: Luxury items (AC, refrigerator, cars, etc.)

Check HSN: GST portal → Search HSN/SAC → Find your product → See rate.

E-commerce sellers: Must mention correct HSN in invoices (2-digit if turnover <₹5Cr, 4-digit if >₹5Cr).

Contact AdvoFin Consulting to ensure your e-commerce business is GST-compliant, ITC-optimized, and notice-free—so you can focus on scaling sales, not managing notices.

Disclaimer: This blog is for educational purposes only and does not constitute legal or tax advice. GST laws for e-commerce are complex and subject to frequent notifications, circulars, and platform-specific variations. TCS rates, ITC eligibility, and return filing requirements mentioned are as of 2025 and may change. E-commerce business models (inventory, marketplace, dropshipping) have different GST implications depending on specific operational structures, contractual terms with marketplaces, and product categories. Every business situation is unique—what applies to one seller may not apply to another. Please consult a qualified GST practitioner, Chartered Accountant, or Tax Advisor specializing in e-commerce for personalized guidance on your specific business operations, marketplace setup, and compliance requirements. AdvoFin Consulting is not liable for actions taken based solely on this content.