• Applicability of GST for startups below threshold limit of 20 lakhs selling through own portal

I developed a home utility product and would like to sell on-line. Portals like amazon require that I should have GST registration, where as I would like to avail the GST concession applicable to the turnover limit of 20(or so) lakhs. My contention is that this keeps the customer price more attractive.

I have a website developed for promoting my product giving all the details. Now my doubt is whether I can sell through my portal without inviting levy of GST.
Asked 5 years ago in GST

Here the problem is not that Amazon asks for compulsory GST registration without any purpose, they are correct in asking for GST registration because as per section 24 of GST act any person providing inter state supplies will have to compulsorily get GST registration irrespective of its turnover. Thus even if you sell it via your own website you need to get GST registration if you are going to provide interstate supplies irrespective of your turnover.

People come online to sell their products in whole of India therefore Amazon is not wrong in asking you to get registration.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4273 Answers
97 Consultations

5.0 on 5.0

Here the problem is not that Amazon asks for compulsory GST registration without any purpose, they are correct in asking for GST registration because as per section 24 of GST act any person providing inter state supplies will have to compulsorily get GST registration irrespective of its turnover. Thus even if you sell it via your own website you need to get GST registration if you are going to provide interstate supplies irrespective of your turnover.

People come online to sell their products in whole of India therefore Amazon is not wrong in asking you to get registration.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4273 Answers
97 Consultations

5.0 on 5.0

Dear Sir,

Hope you are doing well !

"Rs 20 lakh registration limit is only for intra-state traders,"

Traders, thus, will not be able to avail of threshold exemption of Rs 20 lakh turnover, if they have inter-state supplies.Then they will have to register. Threshold exemption is only for traders who are trading within the state,"

So, you will have to get GST registration if you are going to provide interstate supplies irrespective of your turnover.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Yes, your understanding is correct.

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Yes that's correct if you sell in your own state then you don't require GST upto ₹20 lakh turnover.

Hope you find it helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4273 Answers
97 Consultations

5.0 on 5.0

Yes bu if there is any inter state sale then GST registration is compulsory irrespective of T/o u/s 24 of CGST

Nitin Jain
CA, Jaipur
214 Answers

4.7 on 5.0

Dear Sir,

Thank you so much.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Hi

When you are selling through your own website, you do not require GST registration till your turnover exceeds Rs. 20 lacs - provided the sales are intra state only.

Thus there will be GST registration required once you exceed turnover of Rs. 20 lacs or when you provide inter-state supplies.

Lakshita Bhandari
CA, Mumbai
5687 Answers
911 Consultations

5.0 on 5.0

Hi,

You will need the GST registration if you are selling inter state. Rs 20 lakh registration limit is only for intra-state traders.

Regards,

Nikhil

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Your understanding is correct.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Yes, you can sell it on your own website without registering for GST till you achieve a turnover of 20 lakhs.

However, the websites like amazon, flipkart, etc has made it mandatory for the sellers on their website to have GST registration irrespective of the turnover.

Bharat Poplani
CA, Zirakpur
56 Answers

4.9 on 5.0

Dear Sir,

You will compulsory required the GST registration if you are selling inter state irrespective of the turnover limit .

Rs 20 lakh registration limit is only for intra-state traders.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Yes, you are correct.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi,

- Selling through third party online portal, you need to register for GST only when there is a liability of e-commerce operator to deduct TCS.

- In case of inter-state sale of goods there is no threshold limit applicable for GST registration otherwise it is applicable (i.e. sale in intra-state)

Thanks

Vivek Kumar Arora
CA, Delhi
4846 Answers
1040 Consultations

5.0 on 5.0

Hi,

Yes, your understanding is correct. If you keep the sales within state, GST is not applicable till you reach the threshold of 20 lacs.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi

Yes your understanding is correct,

GST registration is not mandatory if you are selling within state,until turnover cross threshold of 20 lacs.

But for interstate sale ,GST is mandatory.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

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