Last reviewed 15 Oct 2026 against CBIC notifications and the GST portal. Links to every official source are at the end.
In short: you must register for GST if your turnover crosses ₹40 lakh (goods, in most states) or ₹20 lakh (services), or if you ship goods to buyers in another state, whatever your turnover. Small sellers who sell only within their own state can sell through a marketplace without a GSTIN by taking a GST enrolment number. Since 22 Sep 2025, most goods are taxed at 5% or 18%, and jewellery at 3%.
This guide is general information, not tax advice. GST rules depend on your exact product, HSN code and state. Before you register, price or file, confirm with a chartered accountant (CA) or GST practitioner.
What changed in September 2025
The 56th GST Council meeting (3 Sep 2025) simplified GST to two main slabs, a merit rate of 5% and a standard rate of 18%, plus a special rate of 40% for a short list of luxury and sin goods. The new rates took effect on 22 Sep 2025 through Notification 9/2025-Central Tax (Rate). The old 12% and 28% slabs were folded into 5% and 18% for most goods.
If your listings, price tags or invoice templates still carry pre-September 2025 rates, update them now.
GST rates for common products sold online (from 22 Sep 2025)
| Product | GST rate | Note |
|---|---|---|
| Readymade garments, sale value up to ₹2,500 per piece | 5% | Was 5% only up to ₹1,000 |
| Readymade garments above ₹2,500 per piece | 18% | Was 12% |
| Footwear up to ₹2,500 per pair | 5% | Was 12% above ₹1,000 |
| Footwear above ₹2,500 per pair | 18% | |
| Silk and cotton fabrics | 5% | Sarees are usually classified by fabric; confirm your HSN |
| Gold, silver and other precious-metal jewellery | 3% | Unchanged |
| Imitation jewellery | 3% | |
| Cut and polished diamonds | 1.5% | Rough diamonds 0.25% |
| Hair oil, shampoo, toilet soap, toothpaste, talcum powder | 5% | Cut from 12% or 18% |
| Other make-up and skin care, perfumes | 18% | |
| Mobile phones | 18% | Unchanged |
| Televisions and air conditioners | 18% | Cut from 28% |
| Furniture (general) | 18% | Bamboo, cane and rattan furniture 5% |
| Notified handicrafts (art ware, idols, handcrafted candles, handmade bags and jewellery boxes, and others listed) | 5% | Only items named in Notification 13/2025 |
| Board games, playing cards, tricycles and similar toys | 5% | Electronic toys and consoles 18% |
| Packaged namkeen, biscuits, chocolates, pasta, coffee, ghee, butter | 5% | |
| Printed books, exercise books and notebooks | Nil | |
| Leather handbags | 18% | Cotton and jute handbags 5% |
Anything not listed in the 5%, 3% or other special schedules falls into 18% by default. If a product is not in this table, look up its HSN code in the rate notification or ask your CA rather than guessing.
Category notes: fashion sellers should price around the ₹2,500 line, because a kurta at ₹2,499 attracts 5% and one at ₹2,501 attracts 18%. See the fashion sellers page. Saree sellers should confirm the HSN of each fabric; see BizzPocket for saree sellers. Jewellery at 3% is covered on the jewellery sellers page.
When do you have to register?
The turnover thresholds
- Goods only: ₹40 lakh a year in most states (Notification 10/2019-CT). Some states and UTs, including the north-eastern states, Uttarakhand, Telangana and Puducherry, stay at the lower threshold for intra-state suppliers.
- Services: ₹20 lakh a year (₹10 lakh in special-category states).
"Turnover" means your aggregate turnover across India under one PAN, including exempt sales.
Compulsory registration, whatever your turnover
Section 24 of the CGST Act lists cases where the threshold does not help you. The two that matter most for online sellers:
- Inter-state supply of goods. If you ship goods to a buyer in another state, you must register, even with ₹1 of turnover. This applies whether the order comes through a marketplace or your own website, WhatsApp or Instagram. There is no turnover exemption for inter-state supply of goods. (Inter-state services are different: Notification 10/2017-Integrated Tax exempts service providers below ₹20 lakh.)
- Selling through an e-commerce operator (ECO) that collects TCS, such as Amazon, Flipkart or Meesho. This is compulsory, except under the 2023 relaxation below.
The relaxation for small marketplace sellers (since 1 Oct 2023)
Notification 34/2023-CT lets a seller supply goods through an e-commerce operator without GST registration if all of these hold:
- aggregate turnover is below the registration threshold
- no inter-state supply of goods
- sales through ECOs are made in only one state or UT
- the seller has a PAN and takes an enrolment number on the GST portal
The marketplace must then block inter-state orders to that seller and does not collect TCS on those sales (Notification 37/2023-CT). In practice, this lets a small home business sell to buyers in its own state on a marketplace without a GSTIN.
What this means for your own website
A store on your own domain is not an e-commerce operator, so the ECO rules do not apply to it. Two cases:
- You only deliver within your own state and turnover is below the threshold: you do not need to register.
- You ship to other states: you must register, from the first inter-state sale.
Most online stores ship nationwide, so most serious online sellers end up registered. If you want to start before you have a GSTIN, restrict delivery to your own state until your registration comes through.
TCS: what marketplaces deduct
Under Section 52, a marketplace collects tax at source (TCS) on the net value of taxable sales it processes for you. The rate is 0.5% in total (0.25% CGST + 0.25% SGST, or 0.5% IGST), cut from 1% by Notification 15/2024-CT in July 2024. The marketplace reports it in GSTR-8, and the amount shows up on your GST portal for you to accept and use against your tax liability. Reconcile it every month; mismatches are common.
A store on your own website does not deduct TCS, which is one reason your own store keeps more of each sale.
The composition scheme
If your turnover is up to ₹1.5 crore (₹75 lakh in some special-category states), you can opt for the composition scheme: you pay a small flat percentage of turnover and file quarterly, but you cannot claim input tax credit or charge GST on invoices.
Two limits matter online:
- No inter-state supplies. A composition dealer cannot ship to other states.
- Marketplaces are now allowed for goods within your state, since 1 Oct 2023 (Notification 36/2023-CT).
Composition suits local sellers who deliver within one state. It does not suit a nationwide online store.
How to register
Registration is free on gst.gov.in (Services → Registration → New Registration):
- Part A: PAN, mobile number and email, verified by OTP. You get a temporary reference number (TRN).
- Part B: business details, principal place of business, bank account, and your goods or services with HSN codes.
- Documents: PAN, Aadhaar, photograph, address proof for the business premises (electricity bill, rent agreement or consent letter) and a bank statement or cancelled cheque.
- Verify with Aadhaar authentication and an EVC or DSC, then submit. You receive an application reference number (ARN).
- GSTIN issued after approval. Opting for Aadhaar authentication usually speeds this up; the officer may ask for clarification or a site visit.
GST invoices for online orders
Every taxable sale needs a tax invoice under Rule 46 of the CGST Rules. For an online order, the invoice should show:
- your name, address and GSTIN
- a unique invoice number (up to 16 characters, unique in the financial year) and date
- the buyer's name and delivery address, and their GSTIN if they are registered
- the HSN code: 4 digits if your turnover is up to ₹5 crore (optional on B2C invoices), 6 digits above ₹5 crore (Notification 78/2020-CT)
- description, quantity, taxable value after discount
- tax rate and amount, split into CGST and SGST (same state) or IGST (other state)
- place of supply, with the state name for inter-state sales
E-invoicing (generating an IRN on the government portal) is mandatory once aggregate turnover crosses ₹5 crore in any year since 2017-18 (Notification 10/2023-CT). Businesses with turnover of ₹10 crore or more must report e-invoices within 30 days of the invoice date.
On BizzPocket, every order gets a GST-ready invoice with the tax breakdown, with or without a GSTIN, so you are not building invoices by hand. Invoices on the plans themselves include GST as required, as the pricing page explains.
Returns you will file
| Return | What it covers | Monthly filer | Quarterly (QRMP) filer |
|---|---|---|---|
| GSTR-1 | Sales invoices, credit and debit notes | 11th of next month | 13th of month after quarter (IFF optional monthly) |
| GSTR-3B | Summary and tax payment | 20th of next month | 22nd or 24th, depending on state |
| GSTR-9 | Annual return | Yearly | Check current exemption for small taxpayers |
The QRMP scheme lets taxpayers with turnover up to ₹5 crore file quarterly while still paying tax monthly. File nil returns when you have no sales; late fees and interest apply to late filing.
Input tax credit
Once registered under the regular scheme, you can claim credit for GST paid on business purchases such as stock, packaging and courier services, against the GST you collect. Example: you buy packaging for ₹10,000 + ₹1,800 GST; that ₹1,800 reduces the tax you pay. Keep the supplier's GSTIN-bearing invoice, and check that it appears in your GSTR-2B before claiming.
Common mistakes
- Using pre-September 2025 rates on listings and invoices
- Shipping inter-state without a GSTIN, assuming the ₹40 lakh threshold protects you
- Wrong HSN codes, which lead to wrong rates
- Not reconciling marketplace TCS against your own sales records
- Missing input tax credit on courier, packaging and platform invoices
- Not filing nil returns in months with no sales
Frequently Asked Questions
Do I need GST to sell online in India?
You need GST registration if you ship goods to another state, whatever your turnover, or if your turnover crosses ₹40 lakh for goods (₹20 lakh for services). Sellers who sell only within their own state and stay under the threshold can sell on marketplaces with a GST enrolment number instead of a GSTIN.
Can I sell on Amazon, Flipkart or Meesho without GST?
Since 1 Oct 2023, yes, if your turnover is below the threshold, you sell only within your own state through marketplaces in one state, and you take an enrolment number on the GST portal. Marketplaces implement this in their own way, so check their seller registration pages.
What is the GST rate on clothes in 2026?
Readymade garments with a sale value up to ₹2,500 per piece attract 5% GST, and those above ₹2,500 attract 18%, since 22 Sep 2025.
What is the GST rate on jewellery?
Gold, silver and other precious-metal jewellery, and imitation jewellery, attract 3% GST. Cut and polished diamonds attract 1.5%.
How much TCS does a marketplace deduct?
0.5% of net taxable sales (0.25% CGST + 0.25% SGST, or 0.5% IGST), since July 2024. You can use it against your GST liability after accepting it on the GST portal.
Official sources
- PIB press release on the 56th GST Council meeting (3 Sep 2025)
- CBIC tax information portal: Notification 9/2025-CT(Rate) (rates from 22 Sep 2025), 10/2025-CT(Rate) (exemptions), 13/2025-CT(Rate) (handicrafts), 10/2019-CT (₹40 lakh threshold), 34/2023-CT and 37/2023-CT (marketplace sellers without registration), 36/2023-CT (composition sellers on marketplaces), 15/2024-CT (TCS rate), 78/2020-CT (HSN digits), 10/2023-CT (e-invoicing at ₹5 crore), 84/2020-CT (QRMP)
- Notification 10/2017-Integrated Tax (inter-state services exemption)
- GST portal and its GSTR-1 and GSTR-3B user guides
- E-invoice 30-day reporting advisory
This article summarises official notifications as of 15 Oct 2026. It is not legal or tax advice; rates and rules change, so consult a CA for your situation.
Selling across India? Read how to start an ecommerce business in India for the full launch checklist, and see BizzPocket for Indian sellers.
