GST Registration for Amazon Sellers

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GST Registration for Amazon Sellers is mandatory in India. As we all know, Amazon is an online selling platform. It provides a common platform for both sellers and buyers. It helps sellers deliver products and services worldwide. Similarly, using Amazon buyers can buy products anywhere in the world. In fact, it is one of the leading online retailers worldwide.

Therefore, it has wide scope for every business planning to take their business online. However, it is important to know the stepwise procedure to become a seller partner on amazon after getting GST Registration.

In this article, we will read about GST Registration for Amazon Sellers and procedure for becoming Sellers on Amazon.

Who are Amazon Sellers?

Amazon sellers is a program by Amazon online marketplace. Therefore, It allows you to sell your product online on  Amazon.

The amazon provides seller programs in two forms. Let us look at both of them.

Amazon Vendor Central 

Amazon Vendor Central is a manufacturers and distributors invitation-only scheme. It awards your goods to Amazon, which it subsequently sells and markets on to customers.

In simple words, In Amazon Vendor Central Program, you directly sell your goods to Amazon. Consequently, Amazon uses those products in their own stock and sell accordingly. Furthermore, Amazon pays directly to vendors and decides their own shipping methods and prices.

Amazon Seller Central

On the other hand, we have Amazon Seller Central. This is most common seller scheme. It allows anyone to use amazon as interface to sell their own products and services. In simple words, you can use this seller central program to sell your goods or services to Amazon’s customer.

However, in this program, seller is responsible for everything. For instance, product listing, legal compliances (GST Return Filing), Advertising etc.

Let us now look at benefits of each program.

Benefits of Amazon Vendor Central

Benefits of Amazon Vendor Central are enormous. Let’s look at some of them.

  • Firstly, Amazon might purchase your products in bulk.
  • Secondly, You get some special tools that are not available in Seller Central.
  • Amazon handles all your product’s advertising and marketing.
  • Lastly, You stay hassle free of handling pricing, shipping etc.

Benefits of Amazon Seller Central

Amazon Seller Central also offers multiple benefits. Some of the most significant ones are as follows.

  • Firstly, Amazon Vendor Central allows you to get millions of unique monthly visitors to your online store. As we all know, The marketplace on Amazon is enormous. Thus, You will get more exposed to the international market and to new and different customers.
  • Secondly, Amazon’s Market is recognized for its reliability, convenience of online purchasing, and selection.  Furthermore, Your products get free branding on Amazon’s marketplace.
  • Similarly, you can use flipkart and other online marketplaces once after getting experience by selling on Amazon.

Why GST Registration is mandatory for Amazon Sellers?

Everyone has to pay taxes on all products and services, the most basic of which is the goods and services tax (GST). It is the process of collecting taxes on behalf of the government.

The government introduced GST as a single tax for the entire country. GST registration serves as the foundation for all tax lines, including Central Excise, Service Tax, and VAT etc.

Therefore, it is mandatory for Amazon Sellers. It allows them to conduct business online while fulfilling tax compliances.

Procedure to Become Seller on Amazon

Becoming an Amazon Seller Partner is very easy. All you have to do is follow the steps as follows.

Company Formation

The first step to becoming a seller on Amazon is Company Formation. Experts recommend going for company formation as it helps them in getting liability protection. The following are the many types of business structures seen in India:

GST Registration for Amazon Sellers

As we know GST stands for Goods and Service Tax. It is applicable to many goods and services. However, if you are selling goods and services on Amazon that are under GST Exemption, then you don’t need registration.

Otherwise, it is mandatory for every other business on Amazon to get GST Registration. Even Amazon has made it clear that only those seller partners are eligible to sell on the portal, if they have GST Registration.

Basic Details and Account Details

To be eligible to become a seller partner on Amazon, it is mandatory to provide the entity’s registered office address or place of business in the respective column. In addition, it is mandatory to provide a contact number for a verification on Amazon while registering.

In order to complete the seller registration procedure with Amazon India, the potential seller must provide Amazon with the following information about his business’s bank account:

  • Name of the Bank Account Holder
  • Account Type
  • Bank Account Number
  • Bank IFSC Code

After fulfilling the above steps, and completing the Amazon Partner quiz, you are all set to go to sell on amazon.

Documents required for GST Registration for Amazon Sellers

  • Pan Card of Company and all Directors
  • Aadhaar/passport all Directors
  • Canceled Cheque of firm or passbook first page
  • Photo of all Directors.
  • Name of the business
  • Nature of business
  • Product deals with
  • Shop rent agreement
  • Building tax receipt
  • Electricity bill
  • DIN number of all Directors
  • Certificate of incorporation
  • Board Resolution
  • Mobile no and Email id office and all the directors
  • Digital Signature

How to optimize your product listing on Amazon?

Now that we know about selling on Amazon, Let us now read about optimizing product listing on Amazon.

  • Firstly, give catchy and proper titles to each product.
  • Similarly, Describe the each product or service in detail.  Also, Mention the benefits of product of service in attractive manner.
  • Optimize the images. Also, use some videos for goods you are selling.
  • Ask your existing clients to review your products on Amazon.
  • Lastly, you can also use Amazon ads to attract more audience.

List of Registrations and Licenses required for Startup

If you want any other guidance related to GST Registration or GST Return filing, please feel free to talk to our business advisors at 8881-069-069.

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