How to Sell Products Online Without GST Number?

In India, businesses with an annual turnover exceeding INR 40 Lakhs need to obtain a GST number. However, businesses might soon be allowed to engage in online selling without having to register for Goods and Services Tax (GST) where turnover falls below the threshold limit.

Keep reading as we talk about how to sell products online without a GST number in more detail. We also talk about the goods/services exempted from GST.

Situations where businesses are not required to obtain a GST registration

Any supplier wanting to sell their goods/services had to have a mandatory registration with some exceptions. 

Here are some situations under which businesses are not required to get a GST registration:

• If the annual aggregate turnover of a business selling goods is less than Rs 40 lakhs (Rs 20 lakhs was in effect for hill states and northeastern states)
• If the annual aggregate turnover of a business providing services is less than Rs 20 lakhs (Rs 10 lakhs was in effect for hill states and northeastern states)
• Entities engaged solely in the business of selling and distributing agricultural products
• Taxpayers neither supplying goods nor services
• Businesses supplying non-taxable goods or providing services that are exempt from GST

Can businesses sell online on e-commerce sites without a GST registration?

Yes, businesses can sell online on e-commerce sites without a GST registration under certain conditions. 

In the 48th GST Council Meeting, the government decided that vendors don’t need a GST registration to sell their products on e-commerce platforms tentatively from 1st October 2023 if they meet the following conditions:

• Total turnover on an all-India basis does not exceed the threshold level
• The individual is not engaged in making taxable interstate supplies.

What products can businesses sell without a GST registration?

Here is a list of products that businesses can sell without GST registration:

• Vegetables, such as potatoes, onions, ginger, and garlic
• Fresh fish, eggs, milk, and other related food items
• Fruits such as grapes and melons
• Unroasted coffee beans, and unprocessed green tea leaves
• Food items that are not packed in branded containers, such as rice, wheat, and cereals
• Fabrics such as raw silk, khadi fibre, and unspun jute fibre
• Raw materials for chalks, slates, hearing aids, and handloom products

Although, some of these items may attract GST once processed.

What are the services excluded from GST?

Here is a list of services that are excluded from GST:

• Cultivation, harvesting, packing, and storage of agricultural produce
• Supply and leasing of machinery for agricultural purposes
• Transportation services including public transit, auto-rickshaws, metered cabs, metro, and other modes of transportation
• Transportation of goods for a fee lower than Rs 1500
• Diplomatic and government services provided in other countries
• Services provided by institutions such as RBI, IRDAI, Central and State Governments, and NPS
• Healthcare services such as mid-day meal catering, VET clinics, paramedics, etc
• Ambulance and charitable services
• Educational services including mid-day meal catering and paramedics
• Basic Saving Bank Deposit (BSBD) banking services under the Pradhan Mantri Jan-Dhan Yojana
• Services associated with religious events, sports organisations, tour guides, and libraries
• Retail packaging, pre-conditioning, and waxing services

How can one sell online without a GST registration?

Here is a step-by-step guide on how to sell online without a GST registration:

1. Choose a good or service that is exempt from GST
2. Select an online marketplace where you can sell such as eBay or Flipkart
3. Create a seller account on the platform
4. Make a product listing for it
5. Use an online payment processor such as Paypal or Razorpay to process your payment
6. Use courier services like USPS or FedEx to deliver your merchandise to customers
7. Handle customer service on your seller central dashboard
8. Promote your goods with branding and marketing strategies

Frequently Asked Questions

• How to sell products online without a GST number?

To sell products online, all you need to do is set up an account with an e-commerce marketplace and start listing your products.

• How to sell on Amazon without GST?

On Amazon, you can only sell books or other non-taxable items without a GST number. For all other products, GST is mandatory.

• How to sell on Flipkart without GST?

To sell your products on Flipkart, simply create a seller account, enter all necessary details, and list your products/services.

• How to sell on Meesho without GST?

To sell your products on Meesho, simply create a seller account, provide your identity proof and bank details, and list your products/services.