How to sell online without GST in India (2026)

Know the thresholds that decide whether GST is mandatory

As of October 2026, GST registration is generally mandatory once aggregate turnover in a financial year crosses ₹40 lakh for suppliers of goods in most states (₹20 lakh in special category states, and ₹20 lakh in a few states that opted for the lower limit) and ₹20 lakh for services (₹10 lakh in special category states). Aggregate turnover means all your taxable, exempt and export supplies under one PAN, across every channel and location. Under those limits, registration is voluntary unless one of the mandatory triggers in step 5 applies.

Certain categories (for example, goods subject to specific notifications, tobacco, pan masala, ice cream and a few others for composition purposes) have their own rules; check your product.

Decide between your own website and marketplaces

The two routes are treated differently. Your own website (a Neweb site with WhatsApp or UPI ordering, Shopify, WooCommerce) is not an e-commerce operator collecting tax at source; you are simply a supplier, and the ordinary thresholds apply. Marketplaces such as Amazon, Flipkart, Meesho and Myntra are e-commerce operators that collect TCS from registered sellers; for unregistered sellers they are permitted to onboard you only under the enrolment route in step 3, and several large marketplaces still require a GSTIN as a matter of policy even where the law allows otherwise.

Practically: own site plus WhatsApp is the simplest route for a small seller under the threshold; Meesho-type platforms are the most common marketplace route for non-GST sellers; Amazon and Flipkart typically expect a GSTIN for most categories. Our guide on boutique websites shows the own-site setup.

Use the enrolment route to sell on marketplaces without a GSTIN

Since 1 October 2023, an unregistered person supplying goods through an e-commerce operator can do so without GST registration if: turnover is below the threshold, supplies are made only within one state or union territory, no inter-state supply is made, the person has a PAN, and the person obtains an enrolment number on the GST common portal (the "unregistered person enrolment" option) and declares the state. The enrolment number is shared with the marketplace, which reports the supplies. The operator does not collect TCS on these supplies.

• You cannot have two enrolments in different states; pick the state you ship from.
• If you later register for GST, the enrolment becomes inactive and the GSTIN takes over.
• Confirm the current portal steps; they have changed since launch.

If you sell from your own website, stay within your state or register

The rule that catches most small website sellers: inter-state supply of goods generally requires GST registration regardless of turnover. So a seller in Jaipur shipping a ₹800 kurta to a customer in Mumbai through their own site has, in most readings, made a taxable inter-state supply requiring registration. Services are treated more leniently: inter-state supply of services is generally exempt from mandatory registration up to the ₹20 lakh threshold under a 2017 notification.

So for goods, either restrict delivery to your state on the website (a pincode check at checkout, or a stated delivery area) or register voluntarily before you ship across state lines. Many sellers choose to register as soon as out-of-state orders become regular, because turning them away costs more than the compliance.

Know the other triggers that make registration mandatory

Beyond turnover and inter-state goods supply, registration is generally mandatory if you: make taxable supplies on behalf of another person as an agent; are liable to pay tax under reverse charge; export goods (exports are zero-rated supplies but require registration to claim refunds and, in practice, to clear customs under GST procedures); supply through an e-commerce operator outside the enrolment conditions; or are a casual taxable person selling from a temporary stall in another state. If any apply, register before the supply, not after; late registration attracts penalties and you cannot collect tax retroactively.

Invoice correctly as an unregistered seller

If you are not registered, you must not charge or show GST on invoices; doing so is an offence. Issue a simple invoice or bill with your name or trade name, address, PAN (optional but useful), invoice number and date, item description, quantity and amount, and a line stating that you are not registered under GST. The payment receipt generator and invoice number generator help keep a clean series. Keep records of every sale by channel so you can prove turnover and state of delivery if asked.

Collect payments on UPI (the UPI QR code generator) or a gateway; neither requires GST registration, though gateways ask for PAN and bank KYC.

Consider the composition scheme as a middle path

If you are registered or will be, and your aggregate turnover is up to ₹1.5 crore (₹75 lakh in some special category states), the composition scheme lets eligible goods sellers pay tax at a flat 1% of turnover (1% for manufacturers and traders; 5% for restaurants; a separate 6% scheme exists for small service providers up to ₹50 lakh) with quarterly payment and an annual return, instead of regular GST. Composition dealers cannot collect GST from customers, cannot claim input tax credit, and since October 2023 can sell through e-commerce operators intra-state. They still cannot make inter-state supplies. It suits a seller who has crossed the threshold within one state and wants simpler compliance.

Track your turnover and plan the switch to registration

Set up a simple monthly sheet: sales by channel, by state of delivery, and running total for the financial year. When you reach about 80% of the threshold, or out-of-state orders become regular, talk to a CA and start the registration; it typically takes a few working days to a couple of weeks with Aadhaar authentication, and you need a principal place of business proof. Registering voluntarily earlier makes sense if your buyers are businesses who want input credit, if a marketplace you want requires a GSTIN, or if you plan to export. Use the GST calculator to see how pricing changes once you add tax, and read our GST registration process post when you are ready.