Dropshipping adds import GST and e-commerce compliance layers most standard guides skip. Here’s how they interact with the ₹20 lakh threshold.
Last updated: June 2026
Dropshipping doesn’t get a special GST threshold based purely on turnover — but if you sell through an e-commerce operator (a marketplace), GST registration is generally mandatory regardless of turnover for most suppliers using that channel, similar to the special rules many other countries apply to marketplace sellers. If you sell exclusively through your own independent website (not a marketplace), the standard ₹20 lakh threshold applies.
E-commerce operators are required to collect TCS (currently 0.5% under CGST plus 0.5% under SGST/UTGST, or 1% IGST for inter-state supplies) on the net value of taxable supplies made through their platform, and remit it to the government — this amount is available to you as a credit against your own GST liability, but it does add a layer of reconciliation to your filings.
If your dropshipping supplier ships directly from outside India, that’s an import, and IGST is generally payable at the point of customs clearance, along with basic customs duty, before the goods are released — this is separate from the domestic GST you charge your end customer, and getting both right requires careful tracking of your supply chain and import documentation.
Generally yes — selling through most e-commerce operators triggers a mandatory GST registration requirement regardless of your turnover level, unlike selling purely through your own independent website.
The sale price — the full amount your customer pays. Your margin is irrelevant to GST turnover calculations, which are based on the value of supply, not profit.
E-commerce operators collect a small percentage of your sale value as Tax Collected at Source and remit it to the government on your behalf — this amount is creditable against your own GST liability but requires reconciliation in your returns.
Generally the importer of record, which depends on your supply chain arrangement with your overseas supplier — this should be clear before you start selling a product to avoid unexpected customs issues.
Partially — e-commerce operators handle TCS collection, but you remain responsible for your own GST registration, invoicing, and return filing obligations.
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