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Is it any legal problem to sell through Instagram and Facebook without GST Registration below 20 lakhs turnover?

Subin VR, Chartered Accountant,FCA, DISA (ICAI)

Answered on February 28,2023

According to Indian GST laws, businesses with an annual turnover of less than 20 lakhs are exempted from registering for GST. However, if a business's turnover exceeds the threshold limit, it becomes mandatory to register for GST.

If you are selling goods or services through Instagram and Facebook and your turnover is less than 20 lakhs per annum, you are not legally required to register for GST. In such a scenario, you are not liable to collect GST from your customers or file GST returns.

However, it is advisable to keep a record of your sales and transactions to ensure compliance with tax laws. Also, if your turnover crosses the threshold limit, you will have to register for GST and comply with all the related regulations.

It is important to note that tax laws are subject to change, and it is always a good idea to consult a qualified tax professional for advice regarding your specific business and circumstances.

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Shyamal Modi, Tax Advocate | Financial Advisor | Virtual CFO

Answered on February 28,2023

If your turnover is less than 40 lakhs for goods / 20 lakhs for services, and you are selling through Facebook/Instagram only within your state then there is no issue!

But if you are also selling outside of your state then you have to get GST Registration.

I recommend contacting a professional to get a clear advice for your business.

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Is it any legal problem to sell through Instagram and Facebook without GST Registration below 20 lakhs turnover?

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