GST for Small Online Sellers: the Basics, in Plain Language

GST questions stop more sellers from going online than technology ever does. Here are the basics in plain language — with the honest caveat up front: this is general information, not tax advice. Confirm your situation with a CA; rules and rates change.

By the Manva team · Last checked 2026-08-13

Do you need GST registration at all?

The general thresholds: GST registration becomes mandatory when annual turnover crosses ₹40 lakh for goods (₹20 lakh in some special-category states) or ₹20 lakh for services. Below that, selling from your own website with direct payments can generally run without registration.

The famous exception: selling through marketplaces (Amazon, Flipkart, Meesho) has historically required GST registration regardless of turnover for most goods sellers. This is one big reason many small sellers start on their own website + WhatsApp instead — you keep the no-registration option while you are small.

Interstate selling

Selling your goods to buyers in other states from your own site is normal and allowed. What matters is where YOU are established — your GST obligations flow from your turnover and your state's rules, and once registered you charge IGST on interstate orders instead of CGST+SGST. Practically, your invoicing system should handle this split automatically (Manva's GST invoices do).

Common rates sellers actually ask about

Rates get revised in GST Council meetings — treat this table as orientation, and check the current schedule for your exact HSN code before printing price tags.

Once registered: the three habits

1. Proper invoices on every order. GSTIN, HSN code, rate split, buyer state. Doing this by hand in a notebook fails exactly when you grow; your store should generate invoices automatically (Manva does this on every order, including the CGST/SGST vs IGST split).
2. File on time, even NIL returns. Late fees accumulate quietly. A missed month with zero sales still needs its return.
3. Claim your input credit. GST you paid on packaging, courier bills and even software subscriptions offsets GST you collect. Sellers routinely leave this money on the table.

The decision in one paragraph

If you are small and selling from your own website: you can usually start without GST registration and register when growth demands it — that is a feature of owning your store rather than renting a marketplace shelf. If you want marketplace volume, budget for registration and compliance from day one. Either way, set up invoicing that does the GST work automatically, so registration day is a settings change and not a system rebuild. For the payments side of the same story, see accepting online payments in India.

Common questions

Can I sell online without GST in India?

Generally yes from your own website while turnover stays under the threshold (₹40 lakh for goods in most states, ₹20 lakh for services). Selling on marketplaces like Amazon or Flipkart has generally required registration regardless of size. Confirm your case with a CA.

What is the GST rate on sarees and clothing?

Clothing at ₹1,000 or less per piece is typically 5%; above ₹1,000 it is 12%. Rates are revised periodically — check the current schedule for your HSN code.

Do I charge different GST for buyers in other states?

Once registered, yes in structure: interstate sales carry IGST while in-state sales split into CGST+SGST — the total rate is the same. Automatic invoicing handles this for you.

Is this page tax advice?

No. It is general orientation for small sellers, written in plain language. GST rules and rates change; confirm your specific situation with a chartered accountant before acting.

Manva is an AI business platform for Indian small businesses: it builds your website and online store, and runs your business with you on WhatsApp.