How to Sell on Amazon Without GST in India 2026: Rules, Exemptions & Workarounds

Can You Sell on Amazon Without GST?

Short answer: It's very difficult. Amazon India's seller registration process requires a GSTIN (GST Identification Number) as a mandatory field. However, there are specific scenarios where you may not need one:

• You sell GST-exempt products like unprocessed agricultural goods, handloom textiles, or handicrafts
• You are below the GST threshold limit (₹40L annual turnover for goods)
• You sell through alternative platforms that don't mandate GST (limited options)

Important: Even if you're exempt from GST by law, Amazon's platform typically still requires GSTIN during registration. You'll need to contact Amazon Seller Support for exemption processing.

GST Threshold Limits in India (2026)

⚠️ Critical: If you sell to buyers in different states (which is inevitable on Amazon), you're making inter-state sales and GST registration is mandatory regardless of your turnover.

GST-Exempt Product Categories

The following product categories are either GST-exempt (0% GST) or have reduced rates:

• Unprocessed agricultural products: Fresh fruits, vegetables, cereals, pulses
• Handloom & khadi products: Hand-woven textiles, khadi garments
• Handicraft items: Handmade pottery, woodwork, traditional crafts (under ₹5,000)
• Books, newspapers, journals: Printed books and periodicals
• Organic fertilizers: Compost, vermicompost
• Salt: Common salt, rock salt

Composition Scheme for Small Sellers

If your turnover is below ₹1.5 crore, you can opt for the GST Composition Scheme:

• Pay a flat 1% GST on turnover (for manufacturers)
• Simplified quarterly returns instead of monthly
• No input tax credit available
• Cannot make inter-state sales (limits Amazon selling)
• Cannot sell on e-commerce platforms (updated rule — check latest)

⚠️ Note: The composition scheme has restrictions on e-commerce sales. Check the latest GST council notifications before opting in.

Legal Alternatives for Sellers Without GST

1. Sell on Meesho

Meesho has relatively flexible GST requirements for small sellers. While GST is still preferred, some categories allow selling with just PAN verification for sellers under the threshold.

2. Social Commerce

Sell through WhatsApp Business, Instagram Shop, or Facebook Marketplace. These platforms don't require GST registration for small sellers.

3. Your Own Website

Build a Shopify or WooCommerce store. You only need GST if your turnover exceeds the threshold.

4. Craft-Focused Platforms

Platforms like Etsy India, CraftsVilla, or iTokri cater to handcraft sellers and may have flexible GST requirements.

Why You Should Get GST Anyway

• ✅ It's FREE — GST registration costs ₹0 on the government portal
• ✅ Takes only 7-10 days to process
• ✅ Unlocks all marketplaces — Amazon, Flipkart, Myntra, and more
• ✅ Input Tax Credit — claim back GST paid on purchases
• ✅ Professional credibility — builds trust with buyers and suppliers
• ✅ Bank loans & credit — easier to get business financing

📖 Step-by-step guide: How to Get GST Number for Amazon Selling

How to Register for GST (Quick Steps)

1. Visit gst.gov.in → Click "New Registration"
2. Enter PAN, mobile number, email
3. Verify OTP and get Temporary Reference Number (TRN)
4. Complete Part B with business details, bank account, address proof
5. Upload documents: PAN, Aadhaar, address proof, bank statement, photos
6. Submit and wait for verification (7-10 working days)
7. Receive GSTIN — add to Amazon Seller Central

Frequently Asked Questions

Is GST registration mandatory for selling on Amazon India?

Yes, for almost all sellers. Amazon requires GSTIN during registration. Only sellers of fully GST-exempt products (like books, handloom) may apply for exemption, but it requires contacting Seller Support.

What happens if I sell without GST?

Selling without GST when required is a legal offense. Penalties include: 10% of tax due or ₹10,000 (whichever is higher) for genuine errors, and 100% of tax due for deliberate evasion.

Can I sell on Flipkart without GST?

No. Flipkart also mandates GST registration for all sellers. The requirement is universal across major Indian marketplaces.

How much does GST registration cost?

GST registration is completely free on the government portal (gst.gov.in). If you hire a CA or consultant, expect ₹500-2,000 in professional fees.

Can I use someone else's GST number to sell on Amazon?

Absolutely not. This is illegal and violates both GST law and Amazon's policies. Each seller must have their own registered GSTIN matching their PAN and bank details.