We sell sarees on Amazon to customers all over India. Is GST registration compulsory when our turnover is only ₹9 lakh?

The ₹40 lakh threshold for goods applies to intra-state sales. Selling through Amazon to customers in other states is an inter-state supply, and section 24 of the CGST Act makes registration compulsory for anyone making inter-state taxable supplies, regardless of turnover. Since October 2023 an unregistered seller may supply through an e-commerce operator, but only within the home state and only after obtaining an enrolment number on the portal. Pan-India orders take you outside that relaxation.

Once registered, Amazon will collect tax at source at 0.5% on your net taxable sales (the rate was halved from 1% in July 2024). That TCS appears in your GSTR-2A and is credited to your cash ledger each month after you accept it in Form GSTR-2X, so it is not a cost, only a timing difference.

You cannot opt for the composition scheme and sell inter-state through a marketplace, so plan on the regular scheme: GSTR-1 and GSTR-3B monthly, or quarterly under QRMP while turnover stays under ₹5 crore. Keep the HSN for sarees (5007, 5407 or 6211 depending on fabric and make-up) consistent on every invoice.