Do I need GST registration to sell on Amazon India?

In most cases, yes. Section 24 of the CGST Act makes registration compulsory for anyone supplying goods through an e-commerce operator that collects TCS. Since October 2023, Notification 34/2023–Central Tax exempts small sellers who supply goods only within their own state and stay under the registration threshold, subject to conditions. Amazon's sign-up also has a tax-exempt option, using PAN, for sellers of GST-exempt goods. Anyone selling to other states needs a GSTIN.

What GST does Amazon charge on its seller fees?

18% on every fee it bills you — referral fee, closing fee, Easy Ship or FBA fees, and cancellation fees. It appears on Amazon's monthly tax invoice and is generally claimable as Input Tax Credit once it shows up in your GSTR-2B.

Is the 0.5% TCS Amazon deducts a cost?

No. It is GST collected at source under Section 52 of the CGST Act, on the taxable value of your sales net of returns. Amazon reports it in its GSTR-8, and you accept it on the GST portal, where it lands in your electronic cash ledger to pay future GST or to claim as a refund.

What is the difference between Amazon's TCS and TDS deductions?

TCS (0.5%) is a GST deduction under Section 52 of the CGST Act and comes back through your GST cash ledger. TDS (0.1%) is an income-tax deduction under Section 194O — Section 393(1) of the Income-tax Act, 2025 since April 2026 — and comes back as a credit in your income-tax return, shown in Form 26AS / AIS.

How do I report Amazon sales in GSTR-1?

Report the full invoice value of every sale — B2B invoices where the buyer gave a GSTIN, B2C supplies otherwise. Do not net off TCS, fees or TDS from the sale value. TCS is not reported in GSTR-1; it is claimed separately from the portal's TCS credit statement.

Amazon Seller GST Guide (2026-27) — Registration, Fees, TCS and Returns

GST for Amazon India sellers — registration, 18% GST on fees, 0.5% TCS vs 0.1% TDS, GSTR-1 and 2B steps, with a worked ₹1,500 payout example.

Last reviewed: 23 September 2026

Spotlight

Worked Example — Where a ₹1,500 Amazon Sale Goes

Selling price (incl. 18% GST)	₹1,500
Referral fee (8%, illustrative category)	−₹120
Closing fee	−₹30
Easy Ship (national, under 500 g)	−₹65
18% GST on those fees	−₹38.70
GST TCS (0.5% of ₹1,271.19 taxable value)	−₹6.36
Income-tax TDS u/s 194O (0.1%)	−₹1.27
Settled to your bank	₹1,238.67

Spotlight

Worked Example — What You Keep After GST

Settled to your bank	₹1,238.67
Output GST you owe on the sale	−₹228.81
ITC on Amazon's fee GST	+₹38.70
TCS credit in your cash ledger	+₹6.36
Kept before product cost (plus ₹1.27 TDS back via ITR)	₹1,054.92

This page collects everything Dhanaay has on GST for Amazon India sellers in one place: when you need to register, what Amazon deducts from each payout, which of those deductions you get back, and the monthly filing routine that recovers them. Each section is short and links to a detailed guide or calculator.

If you sell on more than one marketplace, start with the Complete GST Guide for E-commerce Sellers. This page covers what's specific to Amazon.

1. Registration: do you need a GSTIN?

Most Amazon sellers do. Section 24 of the CGST Act makes GST registration compulsory for anyone supplying goods through an e-commerce operator that collects tax at source, whatever their turnover. There are two narrow exceptions:

Small, same-state sellers. Since October 2023, Notification 34/2023–Central Tax exempts sellers who supply goods only within their own state and stay under the registration threshold, subject to conditions. You can't sell to buyers in other states this way.
GST-exempt goods. Amazon's sign-up has a tax-exempt option, using your PAN, if everything you sell is exempt from GST (some books, for example).

Not sure which applies to you? Run the GST Registration Threshold Checker. To set up your Amazon account, follow the Amazon seller registration guide, which covers documents, the 10 setup steps and GST verification time. If you'd rather hand the registration to a professional, GST registration connects you with a CA partner.

2. What Amazon deducts, and what comes back

The two charts above follow one ₹1,500 sale (GST-inclusive, 18% product) from the order page to your bank, then to what you actually keep. The fee figures are illustrative. Your real referral fee depends on category, and your closing and shipping fees depend on price band, weight and zone. For your own numbers, use the Amazon GST Calculator.

The ₹261 gap between the ₹1,500 price and the ₹1,238.67 payout is made of three different kinds of deduction:

Deduction	Example	What it is	Do you get it back?
Referral, closing, shipping fees	₹215	Amazon's charges for selling	No — this is your real cost of selling on Amazon
18% GST on those fees	₹38.70	GST on Amazon's services to you	Yes — as ITC, once it appears in your GSTR-2B
GST TCS, 0.5%	₹6.36	GST collected by Amazon under Section 52	Yes — accept it on the GST portal; it lands in your cash ledger
Income-tax TDS, 0.1%	₹1.27	Income tax deducted under Section 194O	Yes — as a credit in your ITR (Form 26AS / AIS)

The step most sellers miss comes after the payout. You still owe output GST on the sale — ₹228.81 in this example, the 18% already included in the ₹1,500 price. You pay it in GSTR-3B, and the ITC on Amazon's fees plus your TCS credit reduce that bill. That's how ₹1,238.67 in the bank becomes ₹1,054.92 kept, before your product cost.

Current fee changes, including the new cancellation fees from August 2026 and the closing-fee increase from September 2026, are tracked in Amazon and Flipkart seller fee changes for festive 2026. The 0% referral fee on products priced under ₹1,000 has applied since March 2026.

3. The monthly GST routine for Amazon sellers

Download the month's reports. You need Amazon's tax report (order-level sales, returns and GST) and its monthly fee invoice.
File GSTR-1 by the 11th (or quarterly under QRMP). Report the full invoice value of every sale, not the payout. Don't net off fees, TCS or TDS. See how to file GSTR-1 as an e-commerce seller.
Check GSTR-2B for Amazon's fee invoices before claiming ITC. The GSTR-2A vs GSTR-2B guide explains why 2B is the one that counts.
Accept the TCS credit Amazon reported in its GSTR-8, under TDS and TCS Credit Received on the portal. The TCS refund guide walks through the screens.
File GSTR-3B by the 20th (22nd/24th for quarterly filers), paying output GST net of ITC and your TCS cash balance. See how to file GSTR-3B.
At year end, reconcile your 194O TDS against Form 26AS before filing your ITR, using the 194O TDS guide and calculator. If your turnover crosses the limits, GSTR-9 and 9C follow. See GSTR-9 and GSTR-9C.

Exact dates for the year are on the GST due dates calendar.

4. Getting the product tax right

Amazon asks for an HSN code and tax rate on every listing, and those two fields flow into every invoice Amazon issues on your behalf. A wrong code means the wrong GST on every sale of that product, and the error only surfaces when a notice arrives. Look up each product in the GST Rate Finder or the HSN code finder, and read the real cost of a wrong HSN code before you list anything with several possible classifications.

Amazon issues invoices to buyers in your name. For B2B orders and your own records, the GST invoice format guide lists the mandatory fields.

5. When you outgrow the basics

Fulfilment by Amazon (FBA). Every Amazon fulfilment centre that holds your stock is a place of business under GST, so each one must be added to your registration as an Additional Place of Business, and centres in other states need their own GSTIN. The GST Operations Guide for Scaling Sellers covers multi-location registration and monthly reconciliation.
Selling on more channels. Compare fees across Amazon, Flipkart and Meesho for the same product with the Marketplace Profit Calculator, or read the Amazon vs Flipkart vs Meesho comparison.
Too many invoices to reconcile by hand. See the best GST software for e-commerce sellers. If you'd rather hand filing off entirely, GST return filing connects you with a CA partner who does it for you.

Sources and assumptions

Fees: the worked example uses an illustrative 8% referral fee, a ₹30 closing fee and Amazon's listed Easy Ship rate of ₹65 for national delivery under 500 g. Check your category's current rates in Amazon's seller fee schedule and the fee preview in Seller Central.
Taxes: GST TCS at 0.5% under Section 52 of the CGST Act, in force since July 2024, on taxable value. Income-tax TDS at 0.1% under Section 194O (Section 393(1) of the Income-tax Act, 2025 from April 2026) on the sale value excluding GST. The ₹5 lakh 194O threshold for individuals and HUFs is ignored here for simplicity.
Registration exemption: Notification 34/2023–Central Tax, effective October 2023, for intra-state suppliers of goods through e-commerce operators below the threshold. Conditions apply, so check with a CA before relying on it.