Selling on Amazon and Flipkart from Kolkata: GST Registration, TCS, Warehouses in Howrah and Returns
Most sellers on Amazon, Flipkart, Meesho and other marketplaces need GST registration from the first sale, because supplying goods through an e-commerce operator generally requires registration regardless of turnover. Since October 2023, small sellers can supply goods within West Bengal through a marketplace without GST registration if they enrol and stay below the threshold, but any sale to another state needs registration. Marketplaces collect TCS of 0.5% under GST and deduct TDS of 0.1% under income tax on your sales, which you claim back. If your stock sits in a marketplace warehouse in Howrah or another state, that warehouse must be added to your GST registration.
Do you need GST registration?
| Situation | Registration needed? |
|---|---|
| Selling goods to customers in other states through a marketplace | Yes, from the first sale |
| Selling goods only within West Bengal through a marketplace, turnover below ₹40 lakh | Not required if you enrol under the scheme for small sellers |
| Selling services (other than specified ones) below ₹20 lakh | Not required |
| Using the marketplace’s warehouse in another state | Yes, in that state too |
TCS by the marketplace
- GST TCS: the marketplace collects 0.5% (0.25% CGST + 0.25% SGST, or 0.5% IGST) on net taxable sales and pays it to the government. It shows in your electronic cash ledger after you accept it on the portal.
- Income tax TDS: the marketplace deducts 0.1% on gross sales; it appears in your Form 26AS and AIS and is set off against your income tax.
Warehouses and places of business
If Amazon or Flipkart stores your goods in a fulfilment centre in Howrah or elsewhere in West Bengal, add that address as an additional place of business. If you send stock to a fulfilment centre in another state, you need a separate GST registration there, and stock transfers between your registrations carry GST. See our guide on GST multistate registration.
Returns and reconciliation
- Download monthly sales and returns reports from each marketplace.
- Report sales state-wise in GSTR-1, net of returns.
- Match TCS credited (GSTR-8 data) with your sales report.
- Claim credit only for invoices in GSTR-2B: marketplace commission, shipping and advertising carry 18% GST.
- Keep returned and damaged stock records.
Mismatches between marketplace data and your GSTR-1 are a common trigger for notices.
Income tax
Your marketplace income is business income. If turnover is within the limits, presumptive taxation under section 44AD is possible, but sellers with many returns, discounts and ad spend often show better results with regular books. Claim the income tax TDS in your return.
FAQs
Can I sell on Amazon from Kolkata without GST?
Only within West Bengal, under the scheme for small sellers, with turnover below the threshold. Interstate sales need registration.
What does the marketplace deduct from my sales?
TCS of 0.5% under GST and TDS of 0.1% under income tax.
Do I need GST registration in the state where Amazon stores my goods?
Yes, if the warehouse is in another state.
TAXAJ handles GST registration, marketplace reconciliation, returns and accounts for online sellers in Kolkata. See our e-commerce business service or our guide to GST registration in Kolkata, or talk to our Kolkata team.
Last updated 11 November 2026. Sources: CGST Act, 2017, sections 24 and 52; Notification 34/2023-Central Tax and related notifications on small suppliers through e-commerce operators; notifications reducing GST TCS to 0.5% (2024); Income-tax law on TDS by e-commerce operators. General information only.
