How to Sell Products on Amazon India Without a GST Number

Selling products on Amazon India can be a lucrative business opportunity, offering access to one of the largest online marketplaces in the world. However, many new sellers are concerned about the requirement of a Goods and Services Tax (GST) number, which is typically necessary for selling goods and services in India. If you are a small seller or an individual who is not registered for GST, you may wonder if it's still possible to sell on Amazon India without a GST number. The good news is that there are ways to sell products on Amazon India without having a GST number, depending on the type of products you sell and the scale of your operations.

Understanding GST in India

Before diving into how to sell without a GST number, it's essential to understand what GST is and why it's required. GST is a comprehensive tax levied on the supply of goods and services in India. Businesses with an annual turnover exceeding ₹20 lakh (₹10 lakh for special category states) are required to register for GST and comply with the tax regulations.

GST registration brings several benefits, such as input tax credit, but it also introduces complexities like regular filing of GST returns and adhering to other compliance requirements. For small sellers or those just starting out, these requirements can be daunting.

Situations Where GST Number is Not Required

1. Selling Books: Books, including e-books, are exempt from GST. This means if you are selling books on Amazon India, you do not need a GST number. This exemption applies whether you are selling printed books or digital books. As a book seller, you can list your products on Amazon without registering for GST.

2. Selling Handicrafts: If you are a small artisan or handicraft seller, you might be exempt from GST. Many states in India have specific exemptions for traditional handicrafts, provided your turnover does not exceed the specified limit. This allows artisans to sell on Amazon without needing a GST number.

3. Casual Sellers: If you are selling items occasionally and not as a formal business, you may not need to register for GST. For instance, if you are selling second-hand goods or personal items occasionally, these transactions might not require GST registration. Amazon does allow casual sellers to list and sell items without GST registration, provided these sales are infrequent and not part of a regular business.

4. Small Sellers with Low Turnover: If your annual turnover from sales on Amazon does not exceed ₹20 lakh, you may not need to register for GST. This threshold is ₹10 lakh for sellers in special category states. For small sellers, this means you can start selling on Amazon without a GST number, but you must ensure that your turnover remains below the threshold to avoid penalties.

How to List Products Without a GST Number

Creating an Account: To start selling on Amazon India without a GST number, begin by creating a seller account on Amazon. During the registration process, Amazon will ask for your GST number. If you do not have one, you can select the option to continue without a GST number. This option is available for sellers who are exempt from GST due to the reasons mentioned above.

Selecting the Right Product Category: It is crucial to choose the correct product category that is exempt from GST. For instance, if you are selling books, ensure that your products are listed under the books category. Amazon's system will recognize that books are GST-exempt and will not require you to input a GST number.

Providing Necessary Documentation: Although you may not need a GST number, Amazon might still require other documentation to verify your identity and business. This could include a PAN card, Aadhar card, or bank account details. Make sure you provide all necessary documentation to complete your seller profile.

Managing Your Account Without GST

Understanding Tax Deduction at Source (TDS): Even if you are not registered for GST, you may still be subject to TDS (Tax Deduction at Source). Amazon may deduct TDS on your earnings if your sales cross certain thresholds, so it's essential to understand your tax obligations and keep accurate records.

Keeping an Eye on Turnover: If your sales begin to grow and approach the ₹20 lakh turnover threshold, you will need to register for GST. Monitor your sales regularly, and if you exceed the limit, promptly apply for GST registration to stay compliant with Indian tax laws.

Maintaining Proper Records: Even without a GST number, it is crucial to maintain proper records of your transactions, sales, and expenses. This will help you manage your business effectively and prepare for any future tax requirements.

Potential Challenges

Limited Access to Certain Features: Sellers without a GST number may face limitations on certain features or tools provided by Amazon. For example, you may not be able to access certain advertising tools or participate in Amazon Prime, which could impact your sales.

Trust and Credibility: Some customers may prefer purchasing from sellers who are GST-registered, as it can add a layer of credibility and professionalism to your business. Without a GST number, you may need to work harder to build trust with your customers through excellent customer service and high-quality products.

Future Compliance: As your business grows, you may eventually need to register for GST. It's essential to plan for this eventuality and ensure that your business is ready to comply with GST regulations when the time comes.

Conclusion

Selling products on Amazon India without a GST number is possible, but it comes with its own set of challenges and limitations. By understanding the exemptions, choosing the right product categories, and keeping accurate records, small sellers and artisans can take advantage of the vast opportunities on Amazon India without the immediate need for GST registration. However, as your business grows, staying informed about tax laws and preparing for future compliance is crucial to ensure your business remains sustainable and successful.