Short answer: if you sell to buyers in your own state and your total sales are under your state’s limit, you do not need GST registration. That limit is ₹40 lakh a year for goods in most states. If you ship goods to other states, you need GST registration, no matter how small you are.
A lot of the fear around GST comes from advice written for companies, not for someone selling pickles or sarees from home. The actual rules for small sellers are easier than most people think, and one big rule changed in their favour in October 2023. Here is the whole thing in plain words.
The short answer
- Selling within your own state, total sales under the limit: no GST needed.
- Shipping goods to other states: GST registration needed, whatever your size.
- Selling through a platform that collects payments for you: the platform deducts a small tax called TCS, which registered sellers claim back.
The limit for goods is ₹40 lakh a year in most states. A few states use ₹20 lakh, and some north-eastern states use less, so check the limit for your own state on gst.gov.in.
Selling within your state
Until October 2023, there was a trap here. Anyone selling through an online marketplace had to register for GST from day one, even someone selling ten jars of pickle a month. Selling the same pickles over WhatsApp needed no registration at all. Same seller, same pickles, different rule.
That trap is gone. Since 1 October 2023, you can sell goods through online platforms without GST registration, as long as:
- you sell only within your own state,
- your total sales in a year stay under your state’s limit,
- you have a PAN card,
- and you take a free enrolment number from gst.gov.in before you start.
The enrolment number takes a few minutes on the portal. You get one per state, and it stops being valid if you later register for GST properly.
Selling to other states
The moment you ship goods to a buyer in another state, you need GST registration. There is no sales limit for this rule. A seller in Vijayawada shipping one saree to Chennai needs a GSTIN.
Registration also brings homework: you file returns every month or every quarter, even in months where you sell nothing. It is not hard, but it is a commitment, so it is worth deciding early whether you want to sell across India or keep it local until the numbers justify the paperwork.
What is TCS, and why do platforms deduct it?
When you sell through a platform that collects the buyer’s money for you, the platform must deduct a small amount called TCS, which is short for tax collected at source. The rate is 0.5% of the price of taxable goods.
On a ₹500 sale, that is ₹2.50.
Two things soften this. First, it is not an extra tax. The platform deposits it against your GSTIN, and you claim it back when you file your returns. Second, it only applies when the platform handles the payment. If the buyer pays you directly, there is nothing for a platform to deduct.
How to register, if you need to
Registration is free on gst.gov.in. You need your PAN, Aadhaar, a bank account, and proof of your business address. A rented home works, with the owner’s consent letter. Approval usually takes about a week.
One warning: if an agent offers to register you for ₹2,000, remember that the government charges nothing for this. Some sellers happily pay a CA to handle it, and that is a fair choice. Just know what you are paying for, and that the form itself is free.
Selling on Sagazo
Selling on Sagazo is free. There is no commission and no listing fee, so the sale price is yours.
Your GST position follows the same rules above. If you are registered, the 0.5% TCS is deducted on payments made through the app and deposited against your GSTIN, and you claim it back in your returns. If you sell within your own state without registration under the 2023 rule, no TCS is deducted at all.
If you want to start, tell us about your shop on the become a seller page and we will help you get set up.
This post is general information, not tax advice. Rules and limits change. For your own case, check gst.gov.in or ask a CA.