Selling on Amazon, Flipkart, Meesho, or your own website is not the same as running a regular shop when it comes to GST, and a lot of first time sellers in Chennai find that out the hard way once a notice arrives.
Why online sellers cannot skip registration
Under normal GST rules, a business only needs to register once its turnover crosses the threshold limit (currently forty lakh rupees for goods in most states, twenty lakh for services). Online sellers do not get that comfort. If you sell through an ecommerce operator such as Amazon or Flipkart, GST registration is mandatory from day one, regardless of turnover. This single point catches more new sellers off guard than anything else.
TCS and how marketplaces handle your tax
Marketplaces deduct Tax Collected at Source (TCS) at one percent on the net value of taxable supplies before paying you out. This amount shows up in your GSTR 2A and can be claimed as credit against your GST liability. If your GSTR 2A does not match what the marketplace actually deducted, that mismatch is worth flagging immediately rather than letting it pile up over a full financial year.
Multiple state registrations
If your marketplace stores your inventory in a warehouse outside Tamil Nadu, such as a fulfillment center in Karnataka or Delhi, you may need GST registration in that state too, since GST registration is tied to the place of supply and warehouse location, not just your home address in Chennai.
What documents you actually need
PAN, Aadhaar, proof of business address (even a rent agreement for a small home office works), a cancelled cheque or bank statement, and your marketplace seller agreement. Registration itself typically takes three to seven working days once documents are in order.
A quick checklist before you start selling online
- Confirm which marketplaces you plan to sell on and whether they store inventory outside Tamil Nadu
- Register for GST before your first sale, not after
- Set up a habit of reconciling GSTR 2A against marketplace TCS statements monthly
- Keep your HSN codes accurate; misclassified products are a common source of later notices
If you are setting up as an online seller in Chennai and want your GST registration done correctly from the first sale rather than fixed later, C S Rushil & Co. in Anna Nagar handles registration, TCS reconciliation, and ongoing return filing for ecommerce sellers across the city. Book a free consultation to get started.