Selling online has one dominant compliance question: GST. The default rule makes GSTIN compulsory for goods sold through marketplaces – but a 2023 relaxation lets small intra-state sellers stay exempt, and composition dealers can now sell through platforms too. Add Legal Metrology listing rules and (for your own website) the E-Commerce Rules, and this page is the whole picture.
Updated July 2026. Registrations and fees current as of July 2026 (major recent changes are dated in-line). Rules change by notification – use the official links to confirm before applying.
Registrations and licences you need
| Registration / licence | Applies | Government fee | Authority / portal | Validity |
|---|---|---|---|---|
| GST registration Goods via marketplaces = compulsory GSTIN (s.24(ix)) – EXCEPT intra-state-only sellers within the Rs 40/20 lakh threshold, who can sell with a PAN-based enrolment number (Notif 34/2023, eff 1-Oct-2023, single state, no inter-state sales). Any inter-state sale = GSTIN required. Composition dealers CAN sell goods intra-state via platforms since 1-Oct-2023. | IF APPLICABLE | Nil | GST portal gst.gov.in | Ongoing |
| Marketplace onboarding Needs GSTIN (or enrolment number where eligible), bank account, PAN, pickup address – plus brand approval or authorisation letters for gated categories (platform policy, not law). | MANDATORY | Platform-wise | Amazon / Flipkart / Meesho etc. | Per platform |
| Legal Metrology – listing declarations Every listing must display MRP, net quantity, country of origin, manufacturer/packer name and address, best-before and consumer-care details – seller AND marketplace are both liable (Rule 6(10)). | MANDATORY | Nil (declaration duty); packer licence if you pack | Legal Metrology (Packaged Commodities) Rules | Ongoing |
| E-Commerce Rules compliance (own website) Selling on your OWN site makes you an e-commerce entity: grievance officer (acknowledge in 48 hours, resolve in 1 month), India-resident nodal officer, mandatory seller/return/refund disclosures. | IF APPLICABLE | Nil | Consumer Protection (E-Commerce) Rules 2020 | Ongoing |
| IEC (for import / dropshipping) Required the moment you import inventory or run import-model dropshipping. | IF APPLICABLE | Rs 500 | DGFT dgft.gov.in | Lifetime + annual Apr-Jun update |
| Trademark (brand registry) Not a legal requirement, but marketplace brand-gating (Amazon Brand Registry etc.) effectively requires it to protect listings. | OPTIONAL | Rs 4,500 per class (individual / small enterprise) | Trade Marks Registry Our TM fee calculator | 10 years, renewable |
| Udyam (MSME) registration Not legally compulsory but practically essential: cheaper trademark and expedited fees, priority-sector lending, delayed-payment protection under MSMED Act. | MANDATORY | Free | Ministry of MSME udyamregistration.gov.in | Lifetime |
| Shops and Establishment registration Required in most states within 30 days of starting; our guide covers state-wise fees and portals. | MANDATORY | Varies by state | State labour department Our state-wise S and E guide | State-wise (one-time to 5 years) |
Shops and Establishment applies to your office/warehouse per state rules. FSSAI applies if you sell food online (Basic registration up to Rs 1.5 crore turnover from 1-Apr-2026). State-specific professional tax applies as usual.
The right order to do it in
- Set up the entity and bank account. Choose your entity first: a proprietorship needs no central registration (PAN + bank account, with GST/Udyam/Shops-and-Establishment serving as business proof); a partnership needs a deed (register with the state Registrar of Firms – an unregistered firm cannot sue); an LLP files FiLLiP and a company files SPICe+ on mca.gov.in – the MCA fee for SPICe+ is NIL up to Rs 15 lakh authorised capital (state stamp duty extra).
- Decide the GST position honestly: selling inter-state on marketplaces (the normal case) means GSTIN from day one; purely intra-state within threshold can use the enrolment-number route; composition is available for intra-state platform sales.
- Onboard the marketplaces: GSTIN/enrolment, bank, pickup address, and brand authorisation for gated categories.
- Fix Legal Metrology compliance in your listing templates – MRP, net quantity, origin, manufacturer, dates, care contact – it applies to every listing and both you and the platform are liable.
- If selling on your own website: appoint the grievance and nodal officers and publish the E-Commerce Rules disclosures.
- Add IEC (Rs 500) if importing or dropshipping from abroad, Udyam for MSME benefits, and file for the trademark early – brand gating is the single best listing protection.
Documents to keep ready
Your NIC code: Division 47 for sellers. Common Udyam picks: 47912 (retail via e-commerce), 46901 (B2B online wholesale); a marketplace platform itself leans to 63122 (web portals). Open the NIC Code Finder to search and copy the exact code.
Frequently asked questions
Is GST compulsory to sell on Amazon or Flipkart?
For goods, yes by default – section 24(ix) makes registration compulsory for marketplace sellers regardless of turnover. The exception since 1 October 2023: sellers who sell only within one state and stay within the Rs 40/20 lakh threshold can use a PAN-based enrolment number instead. One inter-state sale ends the exemption, and most marketplace logistics are inter-state – so treat GSTIN as the practical default.
Can a composition dealer sell through e-commerce platforms?
Yes, since 1 October 2023 – composition taxpayers can make intra-state sales of goods through marketplaces (the platform still collects TCS). Services through platforms remain outside composition. Before that date it was completely barred, so older guides say no.
What must every online listing legally display?
Under the Legal Metrology (Packaged Commodities) Rules: MRP inclusive of taxes, net quantity, country of origin, name and address of the manufacturer/packer/importer, best-before date where applicable, and consumer-care details. Both the seller and the marketplace are liable for missing declarations – platforms enforce it in onboarding for exactly that reason.
Do dropshippers need any special registration?
Domestic dropshipping is ordinary e-commerce (the GST analysis above applies). Import-model dropshipping – shipping foreign goods to Indian customers or importing to fulfil – needs an IEC (Rs 500, lifetime with the annual April-June update). Selling on your own site also brings the E-Commerce Rules obligations: grievance officer, nodal officer and mandatory disclosures.
Related tools on CalcGuru
Business Registration Guide (all types)Trademark Fee CalculatorBrand Name Check (before you list)GST CalculatorCompliance Calendar + email reminders
This page lists the registrations COMMONLY required for this type of business – sector-, product- and state-specific requirements may also apply, and thresholds change by notification. It is general information, not professional advice; confirm your specific case with the official portals linked above or a professional before acting. See our full disclaimer.