FAQ: GST Requirements for Cross-Border B2C Shipments into India

1. Does a foreign merchant or PSP need a GSTIN to sell physical goods from abroad to Indian consumers?
No. IGST on imported goods is collected at customs from the buyer, so overseas sellers (merchants, PSPs) aren’t required to register under GST for those B2C shipments.

2. How is GST charged on these cross-border imports?
Indian Customs levies IGST (and any customs duties) at the time of import. The Indian customer pays these duties when the shipment clears customs—your invoice does not include Indian GST.

3. What about the Non-Resident Taxable Person (NRTP) provisions?
NRTP registration is required only if a foreign entity makes taxable supplies within India outside the import process (e.g. on-ground sales or services). Pure cross-border goods shipped under standard customs clearance do not trigger GST registration.

4. Does an international marketplace or platform need a GSTIN?
No. If a marketplace/operator is purely offshore and only facilitates export shipments into India (taxed at import), it does not need to register for GST or collect GST/TCS under Indian law.

5. What if the marketplace or logistics provider acts as importer (Delivered-Duty-Paid)?
Even if it pays import duties (including IGST) on behalf of customers, that remains a customs function. A GSTIN is required only if the same entity subsequently sells those goods within India after import.

6. Are low-value or “gift” shipments exempt from GST and customs duty?
No general exemption exists. All commercial imports incur full IGST and customs duty. Only shipments where total duty computes to ₹100 or less clear without collection. The old ₹5,000 “gift” exemption for e-commerce imports was withdrawn in 2019.

7. Do these rules apply to digital goods or online services?
Answer: No. Cross-border digital services (e.g., software, streaming) are governed by the OIDAR rules—foreign suppliers of digital services must register for GST and charge IGST on B2C supplies.

Relevant Links
Integrated GST Act, 2017 (IGST Act) – Sections 5 & 7 on import IGST
https://cbic-gst.gov.in/aces/Documents/IGST-bill-e.pdf

Customs Tariff Act, 1975 – Import IGST under Customs Tariff Act
https://www.indiacode.nic.in/bitstream/123456789/8774/1/a197551.pdf

Central GST Act, 2017 (CGST Act) – Section 24 on NRTP registration
https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter6/section24_v1.00.html

CBIC FAQ: TCS on E-Commerce Operators (30 Nov 2018)
https://cbic-gst.gov.in/pdf/FAQs-TCS-30-11-2018.pdf

GST Council FAQ: E-Commerce Operators (Feb 2024)
https://gstcouncil.gov.in/sites/default/files/2024-02/faq-e-commerc.pdf

Customs Public Notice No. 02/2020 – Withdrawal of ₹5,000 gift exemption
https://apcustoms.gov.in/m2020/PN-02-2020-CUSTOMS.pdf