GST for E-commerce Sellers in India: 2026 Guide
By Saurabh Pandey · Updated · 3 min read
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GST affects every rupee an online seller in India earns: the price you charge, the fees marketplaces take and what reaches your bank account. This guide explains GST for e-commerce sellers in India in 2026, including the new rate slabs, registration rules, TCS and exports.
GST rates after the 2025 reform
From 22 September 2025, India moved to a simpler structure. The 12% and 28% slabs were removed, leaving:
| Rate | Applies to |
|---|---|
| 5% | Merit goods: many everyday items, some food, textiles and handicrafts |
| 18% | Standard rate: most goods and services |
| 40% | Luxury and sin goods |
| 3% | Gold, silver and jewellery |
| Nil / exempt | Fresh food and other essentials |
Check the HSN code of each product on the CBIC website to confirm its rate.
Adding and removing GST
- Add 18% GST: ₹1,000 × 1.18 = ₹1,180.
- Remove 18% GST: ₹1,180 ÷ 1.18 = ₹1,000, so the GST is ₹180.
Never subtract 18% from a GST-inclusive price: ₹1,180 × 0.82 = ₹967.60, which is wrong.
GST Calculator
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Do you need to register for GST?
The general registration threshold for suppliers of goods is ₹40 lakh of aggregate turnover a year (₹20 lakh in some special category states), and ₹20 lakh for services.
Online sellers used to need GST registration to sell through marketplaces such as Amazon, Flipkart or Meesho regardless of turnover. Since 1 October 2023, small sellers making only intra-state supplies of goods through e-commerce operators can sell without registration if their turnover is below the threshold, subject to conditions such as providing a PAN and declaring their state. Sellers who supply goods inter-state through marketplaces still generally need to register. Confirm your position with a GST practitioner before you start selling.
TCS: tax collected at source by marketplaces
Marketplaces must collect TCS (tax collected at source) on the net value of taxable supplies made through them. Since 10 July 2024 the rate is 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST). The marketplace deducts it from your payout and deposits it with the government, and it appears in your electronic cash ledger, where you can use it against your GST liability.
GST on marketplace fees
Marketplaces and payment gateways charge 18% GST on their commissions, shipping fees and other charges. If you are registered, you can usually claim this as input tax credit (ITC), which reduces the GST you pay. If you are not registered, it is a cost of selling.
Worked example: profit after GST and fees
You sell a cotton kurta for ₹1,050 including 5% GST on a marketplace that charges 20% commission plus 18% GST on the commission. The kurta costs you ₹500.
- GST in the price: ₹1,050 ÷ 1.05 = ₹1,000 net, so ₹50 GST.
- Commission: 20% × ₹1,050 = ₹210, plus 18% GST = ₹247.80.
- If registered, you can usually offset the ₹37.80 GST on the commission against the ₹50 you owe.
Your profit before other costs is roughly ₹1,000 − ₹210 − ₹500 = ₹290 (if registered and claiming ITC). See it for your own products:
GST Profit Calculator (India)
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Enter your cost and selling price.
Selling abroad: exports are zero-rated
Exports of goods, such as Etsy or Amazon Global Selling orders shipped overseas, are zero-rated under GST. Registered exporters usually file a Letter of Undertaking (LUT) so they can export without paying IGST, or pay IGST and claim a refund. You can also claim ITC on inputs used for exports. Read Etsy fees in India if you sell on Etsy.
Records and returns
Registered sellers file regular returns (GSTR-1 for outward supplies and GSTR-3B for the summary and payment). Reconcile your sales with the marketplace's TCS statements (which appear as GSTR-8 data) so your figures match.
The bottom line
Know your product's GST rate, decide whether you need to register, account for TCS and GST on fees, and claim input tax credit where you can. The GST profit calculator shows your real profit after GST.
Rates and rules in this guide were checked against CBIC sources in October 2026. This is general information, not tax advice; consult a GST practitioner.
Frequently asked questions
What are the GST rates in India in 2026?
The main slabs are 5% and 18%, with 40% for luxury and sin goods and 3% for gold, silver and jewellery. The 12% and 28% slabs were removed from 22 September 2025.
Do I need GST registration to sell on Amazon or Flipkart?
Since 1 October 2023, small sellers making only intra-state supplies through e-commerce operators may sell without registration if turnover is below the threshold, subject to conditions. Inter-state sellers generally still need to register. Check with a GST practitioner.
What is TCS for e-commerce sellers?
Tax collected at source: marketplaces collect 0.5% of the net taxable value of your sales and deposit it with the government. You can use it against your GST liability.
Is GST charged on exports from India?
Exports are zero-rated. Registered exporters usually export under a Letter of Undertaking without paying IGST, or pay IGST and claim a refund.