Important: GST registration is mandatory for ALL Amazon sellers in India regardless of turnover — under Section 24 of the CGST Act, e-commerce sellers are in the compulsory registration category.
Is GST Registration Mandatory for Amazon Sellers?
Yes — 100% mandatory. Unlike regular businesses where GST registration threshold is ₹20 lakh (₹10 lakh for special category states), Amazon sellers must register for GST even if their annual sales are ₹1. This is because Amazon is an "e-commerce operator" and Section 24(ix) of the CGST Act makes registration compulsory for all suppliers on e-commerce platforms.
What is TCS Deducted by Amazon?
Amazon (like all e-commerce operators) is required to collect Tax Collected at Source (TCS) at 1% (0.5% CGST + 0.5% SGST or 1% IGST) on the net value of taxable supplies made through its platform. This is deducted from your settlement amount before Amazon pays you.
| TCS Component | Rate |
|---|---|
| Intra-state sales (CGST) | 0.5% CGST + 0.5% SGST = 1% |
| Inter-state sales (IGST) | 1% IGST |
How to Claim TCS Credit
The TCS deducted by Amazon appears in your GSTR-2B (under the TCS section) once Amazon files their GSTR-8 for the month. Steps to claim:
- Download your GSTR-2B for the relevant month
- Check Part II — "Details of tax collected at source" (from e-commerce operators)
- This TCS credit automatically gets credited to your Electronic Cash Ledger
- Offset this against your net GST payable in GSTR-3B
GST Returns Amazon Sellers Must File
| Return | Frequency | What to Report |
|---|---|---|
| GSTR-1 | Monthly/Quarterly | All sales invoices generated for Amazon orders |
| GSTR-3B | Monthly/Quarterly | Summary, ITC claim, TCS credit, net tax payment |
| GSTR-9 | Annual | Consolidated annual return (if turnover > ₹2Cr) |
Amazon Settlement vs GST Turnover
Your GST turnover is the selling price of goods — not the settlement amount Amazon deposits. Amazon's commissions, shipping charges, and TCS are deductions from your proceeds. For GST purposes, you must report the full invoice value (MRP or selling price) as turnover.
Income Tax (ITR) for Amazon Sellers
Amazon seller income is treated as business income — file ITR-3 or ITR-4 (if opting for presumptive taxation u/s 44AD). Key points:
- All Amazon settlements + unredeemed credits = gross receipts
- Business expenses (packaging, storage, advertising, commissions) are deductible
- If turnover > ₹1 crore, tax audit under Section 44AB is required
- TCS deducted by Amazon reflects in Form 26AS — claim as advance tax credit in ITR
Selling on Amazon?
We handle complete GST compliance and ITR filing for Amazon, Flipkart and Meesho sellers. Monthly package available.
Get Seller Tax Help →