How to Sell Product on Flipkart Without Gst Number

Why Sell on Flipkart Without a GST Number?

GST, or Goods and Services Tax, is generally required for selling products online in India, but there are exceptions. Selling on Flipkart without a GST number can benefit small sellers and individuals who may not yet have a registered business or have a small turnover, which falls under the GST exemption threshold. Here’s why you might consider selling without GST:

  1. Simplified Registration: Small or part-time sellers can get started without the formalities of registering for GST.
  2. Reduced Compliance: Avoid the regular filing and compliance requirements associated with GST.
  3. Test the Market: New sellers can test their products on Flipkart before committing to the registration process.

Is Selling Without GST Legal?

Yes, it is legal to sell on Flipkart without GST under specific circumstances. According to India’s GST laws, small businesses with a turnover of less than ₹40 lakhs per year (₹20 lakhs for service providers) are exempt from GST registration. However, there are a few conditions:

  • Products under Exemption Category: Certain product categories, like unbranded handicrafts, books, and some healthcare items, may not require a GST number.
  • Limited Sales Volume: For small-scale or part-time sellers, the GST exemption applies as long as turnover remains under the threshold.

Let’s explore the step-by-step process to sell without GST on Flipkart.

Step 1: Setting Up Your Flipkart Seller Account

The first step is to create a seller account on Flipkart. Here’s how to do it:

  1. Visit Flipkart Seller Hub: Go to the Flipkart Seller Hub and click on “Start Selling.”
  2. Enter Your Contact Details: Provide your email, mobile number, and name. You’ll need to verify these through an OTP sent to your mobile.
  3. Choose Your Business Type: Select the business type that applies to you, such as “Individual” if you are not registered as a business.

Required Documents for Registration

While a GST number is optional in some cases, you will need other basic documents:

  • Bank Account Information: This is necessary for receiving payments.
  • Identity Proof: A PAN card is required for tax purposes, even if GST is not applicable.
  • Address Proof: Flipkart may ask for address verification to ensure seller authenticity.

Step 2: List Products That Don’t Require GST Registration

To sell without a GST number, you need to focus on product categories that are exempt from GST or do not fall under regulated categories. Here are some options:

  1. Books and Educational Material: Books, especially those without ISBN numbers, may not require GST.
  2. Handmade Products: Artisans and craftspeople creating unbranded, handmade items such as pottery, textiles, or jewelry can sell without GST.
  3. Healthcare Products: Products like Ayurvedic remedies, herbal oils, and wellness items may be GST exempt if not branded.
  4. Unbranded Clothing: Selling certain types of unbranded clothing may not require GST, especially in traditional and ethnic wear categories.

Ensure you review Flipkart’s list of acceptable product categories, as some may still require a GST number due to tax laws and product regulations.

Step 3: Manage Your Listings for GST Exemption

After choosing your products, you’ll need to create listings that meet Flipkart’s standards. Here’s how:

  1. Create Product Descriptions: Write clear, detailed descriptions emphasizing quality and features, especially for handmade or unique items.
  2. High-Quality Images: Visual appeal is key in online marketplaces. Use high-resolution images to showcase your products.
  3. Pricing and Offers: Set competitive pricing. Remember to factor in Flipkart’s fees so that you don’t lose profitability.

Since you’re not charging GST, your prices should reflect only the cost of the item without additional tax components. Flipkart’s system will calculate taxes based on the information you provide during product listing.

Step 4: Shipping and Fulfillment without GST

Even without GST, Flipkart allows you to take advantage of its logistics network through the Flipkart Fulfillment program or Flipkart Advantage, where they manage shipping, storage, and delivery for a fee.

Shipping Options:

  • Self-Shipping: If you prefer, you can handle your shipping directly. Ensure your products reach customers on time to maintain a positive seller rating.
  • Flipkart’s Fulfillment Services: Consider using Flipkart’s warehousing and logistics for faster deliveries. You pay Flipkart a fee, but the process becomes easier for you.

Shipping without GST can still be straightforward, as you’ll be responsible only for managing the shipment and any necessary packaging.

Step 5: Payment and Accounting

Even if you’re selling without a GST number, you must still account for income generated on Flipkart.

Payments from Flipkart:

Flipkart processes payments for sellers every seven days. Ensure you monitor and keep track of all incoming payments to ensure accuracy.

Bookkeeping:

Keep a record of sales invoices and payment receipts. Although you may be GST-exempt, maintaining financial records is essential for managing your business finances and filing income tax.

Benefits and Limitations of Selling on Flipkart Without GST

Selling without a GST number has both advantages and some limitations. Let’s explore both sides:

Benefits:

  • No Additional Tax Filing: Small businesses can avoid GST filing requirements and focus on business growth.
  • Ideal for Small-Scale Sellers: Perfect for artisans, part-time sellers, and low-volume sellers.
  • Lower Costs for Certain Categories: Reduces cost structure for unbranded products and simple items, making it easier to set competitive prices.

Limitations:

  • Restricted Product Categories: Sellers can only list exempt categories; high-demand products often require GST.
  • Sales Volume Constraints: Scaling can be challenging as higher volumes may require eventual GST registration.
  • Lack of GST Credit: Without GST registration, you won’t be able to claim Input Tax Credit (ITC) on purchases for your business.

Tips for Successfully Selling on Flipkart Without GST

  1. Choose Exempt Products Carefully: Carefully review Flipkart’s guidelines and GST rules to select appropriate products.
  2. Monitor Your Sales Threshold: Track your sales and understand when you might need to register for GST if you exceed the turnover limit.
  3. Build a Strong Brand: Showcase the unique quality of your products through compelling descriptions, packaging, and excellent customer service.
  4. Optimize for Flipkart’s Search: Use relevant keywords in product titles and descriptions to ensure your products are easily discoverable.
  5. Offer Exceptional Customer Service: Engage with customers through reviews and feedback to build a trustworthy presence on the platform.

FAQs on Selling Without GST on Flipkart

1. Can I sell branded products without GST?
No, selling branded products generally requires a GST number, as they fall under taxable categories.

2. Do I need a business license to sell on Flipkart?
No, individual sellers do not necessarily need a business license, but they should have basic identification and banking details.

3. Will Flipkart deduct taxes from my payment?
Yes, Flipkart deducts a TDS (Tax Deducted at Source) on payments, so keep your PAN card information updated.

4. Can I switch to a GST account later?
Yes, you can add a GST number to your account at any time as your business grows or if your turnover surpasses the threshold.

5. Are there any hidden charges on Flipkart?
Flipkart charges a commission, shipping fees, and other standard fees based on category. Always review Flipkart’s pricing policy to understand charges.

Conclusion

Selling on Flipkart without a GST number is a feasible option for small sellers and artisans, offering a gateway to India’s massive online marketplace. By choosing the right product categories, optimizing your listings, and keeping an eye on your sales volume, you can successfully run a small business on Flipkart without the formalities of GST registration.

However, as your business grows, be prepared to transition to a GST-registered account. This will allow you to expand your product range, claim tax credits, and take full advantage of the benefits of online selling.

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