GST 101 for Amazon Sellers: Understanding Registration, Rates, Returns, and Input Credit

Table of Content

What is GST for Ecommerce Sellers?
What is GST for Ecommerce Sellers?

GST 101 for Amazon Sellers: Understanding Registration, Rates, Returns, and Input Credit

Written By

Tarun Sharma

LL.B

I believe in the words, "Clarity in law leads to clarity in life." As a final-year law student with a growing love for tax law, I've found my voice in writing. For over a year, I've been breaking down GST, indirect taxation, and compliance topics into clear, helpful content that speaks to startups, tax professionals, and curious readers alike. I don't just write about laws; I turn them into stories people can understand and use. Whether it's decoding a complex notice or simplifying registration rules, my goal is to make legal content more accessible and actionable. Off-duty, I'm usually tracking the latest finance updates or just binge-reading case laws for fun.

Reviewed by

Rohit Jadhav

Digital Marketing Strategist

Rohit jadhav is a seasoned Digital Marketing Strategist with a strong background in SEO, brand communication, and content compliance. He oversees content accuracy, ensures alignment with GST-related regulatory frameworks, and verifies that all published materials maintain factual integrity and professional standards. His expertise supports TheGSTCo’s commitment to delivering legally sound, high-quality information for businesses and entrepreneurs across India.

person The GST Co
calendar_today Nov 12, 2025

What is GST for Ecommerce Sellers?

GST (Goods and Services Tax) is a consumption-based tax that is imposed on the sale, manufacture, and consumption of goods and services in India. It is a comprehensive tax system that replaces multiple indirect taxes and simplifies the tax structure for businesses. As an Amazon seller, it is important to understand the basics of GST and how it applies to your business.

First, let's start with GST registration. All businesses whose annual turnover exceeds INR 20 Lakhs (INR 10 Lakhs for North-Eastern states) are required to register for GST. However, As an Amazon seller, it is compulsory to get a GST Number regardless of your Turnover.

Next, let's talk about GST rates. GST is levied at different rates for different goods and services. The GST Council has prescribed three tax slabs - 5%, 12%, and 18%. These rates are applicable to different goods and services based on their nature and use. As an Amazon seller, it is important to know the GST rate applicable to the goods and services you sell on the platform.

Now, let's move on to GST returns. GST returns are the documents that businesses are required to file with the government to report their GST liability. As an Amazon seller, you will need to file three types of GST returns -

GSTR-1, GSTR-2, and GSTR-3.

GSTR-1 is a monthly return that reports all outward supplies,

GSTR-2 is a monthly return that reports all inward supplies, and

GSTR-3 is a monthly return that consolidates the information from GSTR-1 and GSTR-2.

Finally, let's discuss GST input credit. GST input credit is the credit that a business can claim on the GST paid on inputs (goods and services used in the course of business). As an Amazon seller, you can claim GST input credit on the GST paid on the goods and services you purchase for your business. This can help reduce your overall GST liability.

In conclusion, GST is an important aspect of doing business in India, and as an Amazon seller, it is essential to understand the basics of GST, including registration, rates, returns, and input credit. By staying compliant with GST laws, you can ensure a smooth and efficient business operation on Amazon.