Section 24 registration rules, section 52 TCS at the reduced 0.5% operator rate, GSTR-8 credit matching, Notification 34/2023 enrolment for small goods sellers, and a marketplace onboarding checklist.
By Kanoons Editorial Team · 14 min read · Last verified 2026-10-06
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Summary
Selling on Amazon, Flipkart, Meesho or a similar marketplace is a GST design problem as much as a listing problem. The operator collects consideration from buyers, deducts tax collected at source (TCS) under section 52 of the CGST Act, and remits the rest to you — while section 24 often forces a GSTIN even when your turnover is still below the ordinary registration threshold. Verified against CBIC section text, GST Council e-commerce FAQs and Notification 15/2024-Central Tax on 6 October 2026.
- Default rule: suppliers through a TCS-collecting ECO need GST registration under section 24(ix) — threshold exemption does not apply.
- Narrow relief: Notification 34/2023-Central Tax can waive that mandate for goods sellers below the section 22 threshold who meet enrolment and other conditions (not a free pass for services or multi-State selling).
- Operator TCS rate (from 10 July 2024): 0.25% + 0.25% (intra-State) or 0.5% IGST (inter-State) of net taxable value — Notification 15/2024-CT amending 52/2018-CT.
- Sellers reconcile marketplace settlements to GSTR-8 figures and claim TCS credit under section 52(7).
- Package path: E-commerce Package.
Who is an “e-commerce operator” for GST?
Electronic commerce (section 2(44)) is supply of goods or services over a digital network. An electronic commerce operator (section 2(45)) owns, operates or manages that platform. Classic marketplaces that take buyer payment and pay sellers after fees fall squarely inside section 52. A pure self-hosted store where *you* collect payment and there is no “other supplier” through the platform is a different fact pattern — GST Council’s e-commerce FAQ distinguishes own-website sales from operator-mediated supply.
Registration — section 24 vs Notification 34/2023
| Situation | Practical GST registration outcome |
|---|---|
| Supplying goods/services through a section-52 ECO | Section 24(ix) — compulsory registration (threshold ignored) unless a specific exemption applies |
| ECO itself that must collect TCS | Section 24(x) — operator must register |
| Services notified under section 9(5) (operator pays tax as if supplier) | Supplier of those services may still use the ordinary threshold (FAQ position) — the operator’s 9(5) liability is separate from seller TCS |
| Goods seller below section 22 threshold meeting Notif. 34/2023 conditions | May stay unregistered if portal enrolment number, PAN declaration, single-State supply limits and other conditions are satisfied |
Notification 34/2023-Central Tax is the exception sellers misread. It waives compulsory registration under section 24(ix) only for persons making supplies of goods through a TCS-collecting ECO, with aggregate turnover in the preceding and current FY not exceeding the section 22 threshold, and only if every listed condition is met (PAN / address / State declaration on the common portal, no inter-State supplies of goods through the ECO, enrolment number before any supply, and so on). Cross a condition and the waiver falls away.
Marketplace onboarding teams usually still ask for a GSTIN. Enrolment-only sellers should confirm the platform accepts the enrolment number before listing.
TCS under section 52 — what the seller actually sees
Section 52(1) requires every ECO (not being an agent) to collect an amount at the notified rate of the net value of taxable supplies made through it by other suppliers, where the operator collects the consideration. Net value means taxable supplies less returned supplies (Explanation to section 52(1)).
| Item | Rule of thumb |
|---|---|
| Who collects | The ECO that collects consideration (multi-ECO / ONDC stacks — see Circular 194/06/2023-GST) |
| Rate from 10 Jul 2024 | 0.5% total (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST) |
| Deposit by operator | Within 10 days after the end of the month (section 52(3)) |
| Monthly statement | GSTR-8 within 10 days after month-end (section 52(4)) |
| Annual statement | Before 31 December following the FY (section 52(5)) |
| Seller credit | Cash-ledger credit of amounts reflected in the operator statement (section 52(7)) |
Older GST Council FAQ PDFs still show the 1% total rate. That is historical. Prefer Notification 15/2024-Central Tax and the live rate on the GST portal / operator settlement screen.
TCS is not your output tax. You still invoice at the correct GST rate (or the operator remits under section 9(5) for notified services). TCS simply parks a small cash-ledger credit against settlements.
Monthly seller hygiene
1. Download marketplace settlement / TCS reports for the tax period. 2. Match SKU-level taxable value (after returns) to what you will report in GSTR-1. 3. Confirm the operator’s GSTR-8 TCS figures appear in your GST portal views. 4. Claim the cash-ledger credit before / while preparing GSTR-3B so net cash payable is not overstated. 5. Archive the settlement PDF with the return working papers — section 52(8) contemplates matching operator details to supplier outward supplies.
Mid-article CTA: Get marketplace GST and onboarding sorted → Cross-sell: GST Registration, GST Return Filing, Bookkeeping.
Onboarding checklist (seller side)
- GSTIN or valid enrolment number (Notif. 34/2023 goods path only)
- PAN, bank account in the business name, address proof
- Category licences: FSSAI for food, trade / shop registrations where premises require them
- HSN / SAC catalogue aligned with what you will file in GSTR-1
- Return / credit-note workflow that can keep “net value” honest for TCS
- If turnover already crossed ₹5 crore AATO in any FY from 2017-18, plan e-invoicing for B2B documents — see E-invoicing threshold guide
Food sellers should also read Swiggy / Zomato onboarding and FSSAI registration vs licence.
Common failure modes
- Assuming “I’m under ₹40 lakh so I don’t need GST” while selling through a TCS marketplace
- Treating Notif. 34/2023 as covering services or inter-State goods supply
- Ignoring GSTR-8 TCS credits and over-paying cash in GSTR-3B
- Filing GSTR-1 on gross invoice value while the operator reported net of returns
- Confusing section 9(5) operator-paid services with ordinary seller-liable supplies
Related reading on this site
- GST registration threshold limits
- How to file GSTR-1
- GSTR-2B ITC reconciliation
- GST e-invoicing threshold
Primary sources
- CGST Act — section 24 (compulsory registration, clauses (ix)/(x))
- CGST Act — section 52 (TCS by ECO)
- Notification 15/2024-Central Tax (10 July 2024) — TCS rate amendment to 0.25% CGST limb (amending Notification 52/2018-Central Tax)
- Notification 34/2023-Central Tax — waiver of section 24(ix) for eligible goods suppliers through ECOs
- GST Council — E-Commerce FAQ PDF
- Circular 194/06/2023-GST — TCS where multiple ECOs sit in one transaction (ONDC-style stacks)
- GST portal
Disclaimer
General information only — not legal or tax advice. Kanoons is not a law firm or accounting firm. ECO TCS rates, enrolment waivers and marketplace KYC rules are fact-specific and change by notification; confirm against the live CBIC text, GST portal and your operator’s settlement screen before acting. See our Disclaimer.
Frequently asked questions
Do e-commerce sellers need GST registration even below the normal turnover threshold?
Section 24(ix) of the CGST Act generally requires registration for persons who supply through an electronic commerce operator that collects TCS under section 52, regardless of the section 22 threshold. For certain goods suppliers below the threshold, Notification No. 34/2023-Central Tax can waive that mandatory registration if enrolment and other conditions are met — services and inter-State supply patterns usually still need a GSTIN.
What is the current GST TCS rate collected by marketplaces?
Under section 52 as notified, electronic commerce operators collect TCS on the net value of taxable supplies made through them where they collect the consideration. From 10 July 2024 (Notification 15/2024-Central Tax amending Notification 52/2018-Central Tax), the notified rate is 0.25% CGST + 0.25% SGST/UTGST for intra-State supplies, or 0.5% IGST for inter-State supplies (0.5% total), down from the earlier 1% total.
How does a seller get credit for marketplace TCS?
Section 52(7) lets the supplier claim credit of the TCS amount reflected in the operator’s monthly statement (GSTR-8) in the electronic cash ledger, in the prescribed manner. Practically, reconcile the marketplace settlement report against the GSTR-8 figures that appear in your GST portal views each month before filing GSTR-3B.
Is TCS the same as the GST the seller charges on invoices?
No. Output GST on the supply remains the seller’s liability (unless a section 9(5) notified service makes the operator the person liable to pay tax). TCS under section 52 is an additional collection by the operator on net taxable value and is credited to the seller’s cash ledger — it is not a substitute for charging the correct tax rate on the invoice.
What documents do Amazon / Flipkart typically ask for at onboarding?
Expect GSTIN (or enrolment number where Notification 34/2023 applies), PAN, cancelled cheque / bank proof, address and identity KYC, and category-specific licences (for example FSSAI for food). Platforms also expect clean invoice and return workflows that match GST return data.