Under certain conditions, small suppliers of goods may be exempt from registration for sales through an e-commerce operator. This exemption should not be treated as applying to all sellers, all States, or every type of supply.

Understand the law and process

Conditions such as the turnover threshold, restrictions on interstate supply, a limit of one State/Union Territory, PAN, and prescribed enrolment may be relevant. Goods and services are not treated in the same way. A marketplace’s commercial onboarding policy and an exemption under tax law are separate questions; the platform’s permission does not remove statutory conditions. The threshold may be linked to applicable aggregate turnover rules, rather than sales made only through that marketplace. Recheck whether registration is required if the rules change or the business grows. Statements in an old video that ‘all online sellers need GST’ or ‘none of them do’ may both be incomplete.

In detail: What could affect the outcome?

Before starting the business, make a list of supply locations and product categories. Accepting an interstate order may affect the conditions for exemption. Keep records of enrolment, invoices, and platform reports. Responsibilities for collecting tax, claiming input tax credit, and filing returns differ according to status; do not arbitrarily add GST to an invoice if you are not registered.

What should you do?

1. Check the current notification and its applicability to your goods/services category.
2. Assess aggregate turnover and the geography of supplies accurately.
3. Complete any required enrolment or registration and maintain accurate platform and invoicing records.

What documents should you keep?

Keep PAN, turnover records, supply-location details, enrolment/registration records, and marketplace statements.

Hypothetical example

All of a small seller’s eligible sales were within their State, but they later accepted an order from another State. That change could affect the conditions for exemption; eligibility at the outset is not necessarily permanent.

Does opening an account on a marketplace mean tax compliance is complete?

No. Platform onboarding and statutory GST responsibilities are separate; the position must be checked against the facts of your transactions.

Sources and related rules

• GST notification 34/2023: qualifying goods sold through ECO

Editorial review: 26 October 2026. This is general legal information. The outcome may vary depending on the facts of the case, applicable State law, and subsequent amendments.