Selling Handicrafts Online in India Without a GST Number: Possibilities and Practices

Selling Handicrafts Online in India Without a GST Number: Possibilities and Practices

Understanding the GST Requirement in India for Online Sales

Is it possible to sell your handicrafts online without a GST number in India? This is a common query for artisans and sellers who wish to expand their reach through e-commerce platforms but face this hurdle. While there are certain exemptions and opportunities, it requires a thorough understanding of the Indian tax laws.

Exemptions and Requirements

According to the Government of India, certain products and services can be sold online without a GST (Goods and Services Tax) number. However, this exemption is specific to products that are deemed exempt from GST. Practically, if you are dealing with goods and services that are subject to GST, possessing a GST number is mandatory.

A key source of this information is provided by TaxAdda, which states that online sellers need to obtain a GST number if they are selling goods on which GST is applicable, regardless of the value of their turnover.

The rule mandates that even if your annual turnover is less than Rs. 20 lakh, you should consider obtaining a GST number to comply with the law. It is advisable to get your GST number processed as soon as possible, as it supports your compliance and can open up more opportunities in the long run.

Online Marketplaces and Direct Sales

Depending on how you wish to sell your handicrafts, there are different avenues to explore:

Online Marketplaces: Platforms like Amazon and Flipkart require a GST number for registration and selling products online. If you do not have one, you might face difficulties in setting up your seller account. Own eCommerce Store: If you want complete control over your sales and branding, creating an e-commerce store is a viable option. However, this route will also necessitate a GST number if you sell goods that are subject to GST. Social Media Platforms: Selling on platforms such as Instagram and Facebook can be a good starting point. Since these primarily focus on retail and not wholesale, you do not need a GST number for low-value sales. However, as your sales volume increases, you might eventually need to comply with GST regulations.

Steps to Register for GST

If you still want to sell your handicrafts online without a GST number, consider setting up your own online store rather than using marketplaces that require one. With the ease of e-commerce platforms, creating an online store has become more accessible to small and medium sellers.

For those looking for assistance, there are platforms available like Wazzeer, where you can find guidance and support in resolving any queries or challenges.

Here are some essential steps in the process of obtaining a GST number:

Identity Proof: Provide a valid identity document, such as a passport or PAN card. Address Proof: Submit proof of your business and residential address. Common documents for this include a utility bill, bank statement, or rental agreement. Contact Proof: Include a current electricity or mobile bill to sign the application.

For more specialized assistance, you can contact experts or platforms that can guide you through the application process and ensure all your documents are compliant with government regulations.

Registering for GST as a Practical Step

For those who are serious about their online business, registering for GST is not only a legal but also a practical requirement. Once you have a GST number, you can:

Apply for an electronic invoice (e-invoice) system, which is becoming mandatory for all registered businesses. Access government subsidies and benefits if you qualify as a micro-enterprise or small business. Ensure smoother processes for bank transactions and financial audits.

While it may seem like an additional layer of bureaucracy, a GST number can be obtained relatively easily and at a low cost, typically between Rs. 500 to Rs. 1500. Corporate Accountants (CA) can help you apply for this registration, making the process less daunting.