How to Create an Amazon Seller Account Without a GST Number

Creating an Amazon seller account in India typically requires a GST (Goods and Services Tax) number. However, it is possible to set up an account without one, particularly if you fall under the exemption categories. Here is a detailed guide on how to do this:

1. Understanding GST and Its Requirements

The GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition in India. For most businesses, having a GST number is essential to conduct operations. However, small businesses with a turnover below a certain threshold may be exempt. As of the last update, businesses with an annual turnover of less than INR 40 lakhs are exempt from GST registration.

2. Selling Under Exemption Categories

If you qualify for the exemption based on your annual turnover or the type of products you sell, you can register on Amazon as a seller without a GST number. Here's how:

a. Category Selection:

Amazon allows sellers to list under categories that do not require a GST number. These categories include books, handloom products, handicrafts, and certain other categories. If your products fall under these categories, you can proceed without a GST number.

b. Turnover Threshold:

If your turnover is below the GST threshold, you can declare your business as GST-exempt. However, you need to be cautious about the growth of your business. If your turnover exceeds the threshold at any point, you will need to register for GST and update your Amazon account accordingly.

3. Steps to Create an Amazon Seller Account Without GST

Here’s a step-by-step guide on how to create your account:

Step 1: Visit the Amazon Seller Registration Page

Go to the Amazon Seller Central website and click on the ‘Register Now’ button.

Step 2: Sign in With Your Existing Account or Create a New One

You can either use your existing Amazon customer account or create a new account specifically for selling.

Step 3: Enter Your Business Information

• Business Name: If you are a sole proprietor, you can use your personal name.
• Business Address: Provide a valid business address where you can receive mail and packages.
• Mobile Number: Enter your mobile number for OTP verification.

Step 4: Choose the Appropriate Categories

• Select the product categories that are GST exempt, such as books, handicrafts, or handloom products. This selection will allow you to bypass the GST requirement during registration.

Step 5: Skip the GST Number

• On the GST details page, select the option to declare that your business is GST-exempt due to turnover or product type.
• If the page asks for a GST number, look for an option like "I do not have a GST number" or "I am exempt from GST."

Step 6: Complete the Registration

• Provide any additional required information, such as bank account details for receiving payments.
• Review and submit your application.

4. Managing Your Account Without GST

Once your account is set up, managing it without a GST number involves understanding the limitations and responsibilities:

• Limited Categories: You are restricted to selling only in categories that do not require a GST number. Expanding your product range may require GST registration.
• Compliance: Keep a close watch on your turnover. If it crosses the threshold, you must register for GST and update your account to avoid penalties.
• Regular Updates: Amazon periodically updates its policies, so it’s crucial to stay informed about any changes that might affect your eligibility to sell without a GST number.

5. Future Considerations

As your business grows, registering for GST might become necessary. The benefits of GST registration include the ability to sell in more categories, claim input tax credits, and expand your business more freely. Even if you start without a GST number, consider planning for eventual registration as part of your business growth strategy.

Conclusion

Creating an Amazon seller account without a GST number is possible if your business qualifies for certain exemptions. By carefully selecting your product categories and managing your turnover, you can begin selling on Amazon without immediate GST registration. However, as your business grows, GST registration may become a necessary step. Staying informed about the latest GST regulations and Amazon policies will help ensure your business remains compliant and continues to thrive on the platform.