Do I need a GST Registration to sell Goods such as homemade chocolates on Flipkart or Amazon Online?

GST Registrations and GST return Filings

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Getting GST registration could be an easy task but maintaining it requires a full-time consultant to check and complete compliances. Many sellers who are very talented are opting for their personalized creations to be sold through e-commerce platforms. This varies from art to decorations. Soaps, cosmetics and eatables and thus we cannot forget chocolates. Everyone loves chocolates. Some enjoy it Dark, some melted, and many homemade.  We have all been a fan of chocolates and looking for various wide varieties. The home chefs make delicious chocolates too and these are sold on Amazon, Flipkart, and other e-commerce platforms.

However when first time sellers go and signup on amazon seller central or Flipkart seller registration they are asked GST registration number even though their turnover is negligible as they have only recently started to sell their products. Is it necessary and do sellers need a GST number if they want to sell homemade chocolates on Flipkart and Amazon? 

The direct answer is Yes. Here why:-

GST taxation is implemented by Government which enables them to charge GST on sale transactions. In order to promote ease of business and reduce the compliance burden, the Government has exempted sellers up to certain sales turnover limit and they need not register if their turnover in an entire year is below 40 lacs and 20 lacs depending upon the place of business. The statewide turnover limit for GST registration could be found here.  They why do Amazon and Flipkart is still asking you to get registered. The answer is government laws had defined compulsory registration for sellers who are selling on these Ecommerce websites.

Why is it required to get registration to sell on Amazon and Flipkart?

If a seller is selling any goods outside the state, they cannot take benefit from the above threshold limit. They need to get compulsorily registered as per GST provisions. The government has made this mandatory to check any tax evasions and maintenance of GST taxation within the state under control. There is no separate mechanism to stop any seller from selling outside their state if they are selling through these e-commerce platforms. Thus, it has been made compulsory to get registered if you are willing to sell your goods through amazon or Flipkart.

Can we sell homemade chocolates without GST on Amazon and Flipkart

Chocolate is a product that has a unique identity number (HSN No. ) as 1801–1806 which is taxable at a rate of 5 and 18 percent which is a taxable supply under GST. GST recognizes each product through a unique code known as HSN code uniform per type of product. Since chocolates are already taxable goods and thus even if they are homemade, you are required to get GST registered for the same. Thus, your goods are taxable and you are going to sell it on amazon/Flipkart of any other Ecom operation then you will definitely need a GST number.

What are the charges for GST Registration?

At Business Helpers, We help our clients to Get registered for Free at Zero cost. You can read about the details here. You are required to have a very basic minimum of KYC and documents for GST registration. Documents required for GST registration could be found here.

Any other queries can be mailed to us at rohit@businesshelpers.in

Disclaimer:-
Do take advice of a professional consultant before taking any big financial step. We are not liable for any harm to you if any info mentioned here is used. This info is not meant to be used as a legal opinion. We would love your feed back and advice/errors related to this blog. Please do contact us at rohit@businesshelpers.in. Thank You for your kind support.

This information is being provided to you on businesshelpers.in. Business Helpers is an Accounting service provider and GST and Income Tax Consultant. Do check out our pricing and plans in the link here.

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