Sell Products Online Without GST Number In India
One of the most important things for every person in the twenty-first century is financial stability. Even with a job, it can occasionally be quite stressful and challenging for people to cover their daily expenses. As a result, many people have established their enterprises on internet marketplaces to become financially secure.
However, selling products on online platforms is not as easy as it seems. In most cases, it is mandatory to have a GST number to sell products on online platforms. So, for Indian businesses that do not have a registered GST number, selling commodities on the online market could be troublesome.
In this article, you will learn about ways to sell products online without GST number in India. You will also become aware of the various sites where you can sell products online without GST number in India.
Can E-Commerce Sellers Operate Without a GST Registration?
Many entrepreneurs wonder whether they can sell products on e-commerce platforms without a GST registration. In India, selling goods or services online typically requires GST registration if the products are taxable. However, there are exceptions. If a business is dealing exclusively in non-taxable goods or services, or if their annual turnover is below the ₹20 lakh threshold for taxable goods, they may be able to sell on e-commerce platforms without needing to register for GST.
It’s essential to understand that even if a seller qualifies for the GST exemption due to their product’s nature or turnover, they must ensure that their offerings are classified as non-taxable goods or services. For taxable goods, GST registration will be required, even if the seller’s turnover falls below the threshold.
What Goods and Services Are Not Subject to GST?
While GST is applied to most goods and services in India, certain products and services are exempted from the tax. These include non-taxable goods such as fresh produce, certain handmade items, and specific agricultural products. Non-taxable services, likewise, may include services with no GST rate or those specifically exempted by the government.
For instance, basic food items, dairy products, and agricultural products like fruits and vegetables generally do not attract GST. Similarly, services like healthcare, education, and certain financial services are often excluded from GST. These exemptions allow businesses dealing in such goods or services to avoid the complexities of GST registration and filing.
Products that can be sold online without a GST number
It is possible to sell commodities online without a GST number in India, as long as the goods you wish to sell are non-taxable. Selling of taxable goods is possible only with a registered GST number. Even if your turnover annually is below 20 lakhs for taxable goods, you will still need a GSTIN to supply your goods. Hence, to sell products online without GST number in India, the product GST rate has to be 0%.
Here is a list of a few non-taxable goods:
- Natural products like milk products, honey, etc.
- Fruits like apples, grapes, etc.
- Fresh vegetables like onions, tomatoes, etc.
- Livestock
- Dry fruits like cashews, almonds, etc.
- Baked foods like pizza, and bread. Etc.
- Books, Newspapers.
- Fabrics of jute, khadi, silk, etc.
Here is a list of a few non-taxable services:
- Services with no GST rate or 0% GST.
- Non-taxable services are mentioned in the GST Act, under Section 2(78).
Platforms to sell products online without GST number in India
While many popular e-commerce platforms like Flipkart, Amazon, etc., generally require GST registration for sellers, particularly for taxable goods or if their turnover exceeds ₹20 lakhs, there are still some platforms and methods that allow you to sell products online without needing a GST number.
Here are some platforms where you can sell products online without GST registration in India:
1. eBay
eBay is one of the largest global platforms that enables sellers to reach a wide audience without necessarily requiring GST registration. However, sellers must ensure they are selling non-taxable goods or that their annual turnover is under ₹20 lakhs. To get started, you can create an eBay account and also set up a PaisaPay account for payments. A linked bank account is required for transactions.
2. Fleaffair
Fleaffair is a platform for selling handmade, self-made products, including clothing, accessories, and artifacts. If your products are non-taxable and meet platform guidelines, you can sell without a GST number.
3. CraftsVilla
CraftsVilla allows sellers to showcase and sell vintage or uniquely crafted items. Again, ensuring the products are non-taxable and adhering to platform rules is key to avoiding the need for GST registration.
4. Kraftly
Kraftly is an online marketplace that enables sellers to list various products such as clothing, notebooks, accessories, and more. Non-taxable items can be sold without GST, but taxable products may still require registration.
5. Infibeam
Infibeam is another platform where you can sell online without needing a GST number, especially for low-value or non-taxable products. It is a popular choice among Indian sellers, with significant revenue generated on the platform. Although GST is not required for some sellers, a PAN card is mandatory for registration.
Apart from these platforms, here are a few other ways to sell products online without a GST number:
- By Creating Your Own Website: If your annual turnover is below ₹20 lakhs and you are selling non-taxable goods, you can create your own e-commerce website. Platforms like Shopify, WordPress (with WooCommerce), and others allow you to set up your online store. However, if you’re selling taxable goods, GST registration may still be required.
- Social Media Platforms: You can also sell through social media tools like WhatsApp and Instagram. However, remember that these platforms come with their own set of challenges and limitations, such as the inability to handle large transactions easily or the absence of built-in payment gateways.
How can I conduct online sales without charging GST (Goods and Services Tax)?
Step 1 – Select a product that is not subject to taxes for your online sales
Selling certain products without a GST number is possible, such as digital downloads, software, and services. However, it is crucial to conduct research to confirm their eligibility for sale without a GST number.
Once you have established that a specific product can be sold without a GST number, the next step is to identify an online marketplace that permits the sale of such products.
Step 2 – Select an appropriate online selling platform
When selecting a platform for selling online, it’s crucial to consider various factors, such as your willingness to pay fees for platform usage. Different platforms have varying fee structures, with some offering lower fees compared to others.
Step 3 – Create your seller account on e-commerce marketplaces
To begin selling products online, it is necessary to create an account on an e-commerce marketplace. However, it is crucial to carefully review and understand the specific rules and regulations outlined in the marketplace’s seller policy prior to setting up your account.
Step 4 – Generate a product list
To sell your products online without incurring GST, you must begin by creating a comprehensive product listing. This listing will enable you to showcase your available products and include essential details like pricing and stock availability
Step 5 – Deliver your products to customers
To ship your products to customers without incurring GST, there are several options available. You can utilize reputable courier services such as UPS or FedEx, as well as shipping companies like USPS or Canada Post. Another alternative is to leverage online retail platforms like Amazon or eBay, which provide shipping services. Regardless of the method you choose, it is crucial to adhere to the guidelines provided by the shipping company and ensure that you include the necessary tax information with each order.
Conclusion
Selling products online in India without a GST number is absolutely possible—if you choose the right products and platforms. By focusing on non-taxable goods and services, you can start your e-commerce business with minimal red tape. Whether you’re selling handmade crafts, fresh produce, or books, platforms like eBay, Fleaffair, and Infibeam provide excellent opportunities for GST-free selling.
Just remember, while you don’t need a GST number for certain products, it’s essential to stay informed and ensure your goods fall within the non-taxable category. With the correct approach, you can quickly set up your online store, reach customers, and grow your business—all without the need for GST registration.
For further information and assistance, OnDemand International is here to guide you through every step of your journey.
FAQ’s
In India, only exempted goods and services may be sold without a GST number.
It depends on the type of products you’re selling and your annual turnover. If you’re selling taxable goods and your turnover exceeds ₹20 lakhs, then GST registration is required. However, if your products are non-taxable or your turnover is below ₹20 lakhs, you may be able to sell without needing GST registration.
There are several e-commerce platforms where you can sell without a GST number, provided your products are non-taxable. Some popular platforms include:
- eBay
- Fleaffair
- CraftsVilla
- Kraftly
- Infibeam
You can also sell through your own website or via social media platforms like WhatsApp and Instagram if you’re selling non-taxable goods.
Non-taxable goods such as fresh produce, books, dairy products, dry fruits, handmade crafts, and other items that fall under the GST exemption category can be sold without a GST number. It’s important to verify whether your products fall into the non-taxable category before proceeding.
Selling through social media platforms can be an option for selling non-taxable products without a GST number. However, keep in mind that these platforms may not handle payments or shipping logistics as efficiently as dedicated e-commerce platforms, and you still need to ensure that your products are eligible for GST exemption.
