Types of GST Registration: Which One is Right for You?
When you apply for GST registration, you need to choose a scheme.
1. Regular Scheme:
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This is the standard and mandatory scheme for all eCommerce sellers.
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Under this scheme, you have to file your sales and purchase details (GSTR-1, GSTR-3B) every month or quarter.
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You can collect GST from customers and claim Input Tax Credit (ITC) on the GST you paid on your purchases.
2. Composition Scheme:
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IMPORTANT: Sellers who supply goods through eCommerce operators cannot opt for the Composition Scheme. GST law does not permit this. So, if you want to sell on Amazon/Flipkart, you must register under the Regular Scheme.
Required Documents for GST Registration (2025 Checklist)
Before starting the registration process, keep scanned copies of these documents ready.
For Sole Proprietor / Individual:
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PAN Card
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Aadhaar Card
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Owner's Passport-size photo (JPEG format, max 100 KB)
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Bank Account Details (Cancelled cheque or bank statement)
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Business Address Proof:
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If you own the property: Electricity bill, property tax receipt
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If it's a rented property: Rent agreement and a No Objection Certificate (NOC) from the landlord
For Private Limited Company / LLP / OPC:
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Company's PAN Card
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Certificate of Incorporation
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PAN and Aadhaar of Directors/Partners
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Photos of Directors/Partners
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Board Resolution or Authorization letter for the Authorized Signatory
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Bank Account Details
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Business Address Proof
Step-by-Step Guide: How to Register for GST Online (on the GST Portal)
GST registration is completely online and free of cost. You can do it yourself or take help from a tax consultant.
Step 1: Generate a TRN
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Go to the official GST portal: www.gst.gov.in.
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Click on 'Services' -> 'Registration' -> 'New Registration'.
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Fill Part-A of the form: Select 'I am a Taxpayer', your state, district, legal name (as per PAN), PAN number, email address, and mobile number.
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Enter the captcha and click 'Proceed'. You will receive separate OTPs on your mobile and email. Verify them.
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After verification, a TRN (Temporary Reference Number) will be displayed on your screen. Note it down. It is valid for 15 days.
Step 2: Fill the Application Form
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Go to the GST portal homepage again and click on 'New Registration'.
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Select the 'Temporary Reference Number (TRN)' option, enter your TRN and the captcha, and click 'Proceed'.
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You will receive an OTP on your mobile/email. Enter it to log in.
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Your application will be shown in 'Draft' status. Click on the 'Edit' icon.
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Part-B of the form will have several tabs. Fill them carefully:
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Business Details: Trade Name, constitution of business (proprietorship, etc.).
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Promoters/Partners: Details of all partners/directors.
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Authorized Signatory: Details of the person responsible for GST compliance.
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Principal Place of Business: Address of your main office and upload supporting documents.
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Details of Goods and Services: Enter the HSN codes (for goods) or SAC codes (for services) of the products you will deal in. It's a good practice to enter the codes for at least your top 5 categories.
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Bank Accounts: Add your business's bank account details.
Step 3: Verification
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After filling in all the details and uploading the documents, you need to verify the application.
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There are two options for verification:
Step 4: ARN Generation
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After successful verification, an ARN (Application Reference Number) will be generated. You can track the status of your application using this ARN.
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A tax officer will review your application within 3-7 working days. If everything is correct, your GSTIN will be allotted. If there are any issues, they may ask you for clarification.
Sole Proprietorship GST Registration
The Deal with TCS: Special Information for Amazon & Flipkart Sellers
When you sell through an eCommerce operator, another concept comes into play - TCS (Tax Collected at Source).
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What is it? When a customer buys your product from Amazon/Flipkart and makes a payment, Amazon deducts 1% (0.5% CGST + 0.5% SGST or 1% IGST) as TCS from that payment.
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Example: If you sold an item for ₹1000, Amazon, instead of giving you the full amount, will deduct 1% (₹10) and deposit it with the government.
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Your Benefit: This ₹10 will appear in your GST account. When you file your monthly GSTR-3B return, you can adjust this ₹10 against your total tax liability (claim it as Input Tax Credit). This reduces your out-of-pocket tax burden.
The Impact of GST on Small Sellers and Startups (The Human Impact)
The impact of GST on eCommerce is not limited to just tax collection. It directly affects millions of small entrepreneurs in the country. Initially, the rule of mandatory registration without any threshold was a barrier for many people, especially those who wanted to start a small business from home. It increased both the compliance burden and the cost.
The new rule effective in 2025 (exemption for intra-state sellers below the threshold limit) is a revolutionary step towards 'Ease of Doing Business'. This rule promotes the human values of fairness and economic inclusion. Now, a student, a housewife, or an artisan can bring their products online without the initial hassle, test their business by selling within their city, and come under the GST net once their business grows. This helps in realizing the dreams of 'Digital India' and 'Aatmanirbhar Bharat' (Self-reliant India) at the ground level.
Conclusion: The Path Forward
So, the picture for GST for eCommerce businesses in 2025 is clear. If you want to sell on a large scale or across the country, GST registration is your first step. But if you want to start small and limit yourself to your own state, the new rules give you a golden opportunity.
Both technology and laws are changing. To become a successful online seller, it's essential to stay updated with these changes. Don't see GST registration as a burden; instead, view it as a way to make your business formal and organized. It will give you better credibility, make it easier to get loans, and help you scale your business in the long run.
Frequently Asked Questions (FAQs)
Q1: If I only sell goods through Instagram/Facebook, do I need a GSTIN in 2025?
A1: Technically, you are not using an eCommerce platform that deducts TCS. Therefore, the normal threshold limit (₹40 lakh for goods) will apply to you. If your annual turnover is below this limit, you do not need a GSTIN.
Q2: In 2025, if my annual sale is ₹15 lakhs and I want to sell on Amazon only within my state (e.g., Rajasthan), do I need to register for GST?
A2: No. According to the new rule (Notification No. 34/2023), since your turnover is less than ₹40 lakhs and you are only selling intra-state (within Rajasthan), you do not need GST registration. You will have to enroll on Amazon with your PAN.
Q3: How long does the entire GST Registration process take?
A3: If all your documents are correct, you will usually receive your GSTIN (registration certificate) within 3 to 7 working days after the ARN is generated. Sometimes, it may take longer if the officer asks for clarification.
Q4: Can I become a seller on Amazon or Flipkart without GST?
A4: Yes, in 2025 this is possible, but only if you meet the conditions of the new rule: your turnover is below the threshold, and you are only selling within your state. If you want to sell inter-state (to other states), a GSTIN is mandatory.
Q5: What is TCS (Tax Collected at Source) and how does it affect my payments?
A5: TCS is the 1% tax that platforms like Amazon/Flipkart collect from the customer on your behalf and deposit with the government. It is deducted from your final payment, but you can adjust (claim) it against your total tax liability when filing your monthly GST return. It temporarily blocks a small part of your working capital but is not an extra expense for you.