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.

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

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

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

  • What's the difference? Interstate means “between states,” as in interstate trade between Tamil Nadu and Karnataka. Intrastate means “within a state,” as in Tamil Nadu's intrastate commerce.

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.

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 that is exempt from GST
  2. Select an online marketplace where you can sell such as Kandharam, Amazon, eBay, Flipkart, Meesho, Myntra
  3. Create a seller account on the platform
  4. Make a product listing for it
  5. Promote your goods with branding and marketing strategies
    How can one sell online without a GST registration?

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