GST Registration Field Visit Guide for Drop-Shipping & E-commerce Sellers

GST Field Visit Guide for E-Commerce Sellers Without Inventory at Home

If you’re an e-commerce seller operating on platforms like Amazon, Flipkart, Meesho, or others—and you don’t store any products at your home address—getting a visit from a GST officer can feel confusing or intimidating.

But don’t worry: field visits are a normal part of the GST registration process, especially when your home is listed as your principal place of business. Here’s exactly what to expect and how to respond confidently and correctly during the verification process.


Why a GST Field Visit Happens

The field visit is meant to verify the existence and legitimacy of your business at the declared address. The officer is not there to harass you, but simply to check:

  • Whether the address is valid

  • If business activities are happening from the location

  • That your documents are genuine


Common Questions Asked — With Sample Answers

  1. What is the nature of your business?

    Answer: “I sell clothing (or your product) online through platforms like Amazon, Flipkart, and Meesho.”

  2. Why is your home listed as your business address?

    Answer: “I operate the business digitally from home for documentation and compliance purposes. No physical inventory is stored here.”

  3. Where is your stock stored?

    Answer: “I don’t stock goods at home. I use a drop-shipping model—suppliers ship products directly to customers.”

  4. Can you show any business setup (e.g., devices or tools used)?

    Answer: “Yes, I can show my laptop, mobile, email confirmations, platform dashboards, and order management system.”

  5. Do you have documents related to your suppliers or products?

    Answer: “Yes. I maintain supplier contracts, e-commerce platform registrations, and digital copies of invoices and orders.


Documents to Keep Ready

Make sure you have the following documents available (digitally or physically):

  • PAN & Aadhaar Card

  • Recent utility bill for address proof

  • GST application acknowledgment

  • E-commerce platform registration confirmation (email/screenshot)

  • Sample order or invoice from your portal

  • Supplier details or agreement (if applicable)


Important Compliance Tips

  • Ensure your documents match the GST application exactly—especially address and name.

  • Clarify that your home is only for communication, not for stocking goods.

  • Remain calm, honest, and cooperative with the officer.

  • Keep a clean, professional digital trail of orders, invoices, and platform communications.

You are operating a 100% legitimate e-commerce business under the drop-shipping model. GST law fully supports this approach as long as you:

  • File your GST returns on time

  • Maintain proper digital records

  • Provide truthful responses during verification


Display a Business Name Board at Your Address

Before the GST officer visits, it’s highly recommended to fix a nameplate or board with your business name at a visible location—such as the entrance, main door, or gate of your home. This small step significantly increases the chances of successful verification, as it visibly establishes that your home address is being used for official business correspondence. The board should ideally mention:

  • Your GST-registered business name
  • Your GSTIN or “Registered Office” label

This shows the officer that your business is active and traceable at the registered address—even if no stock is stored there.


Final Thoughts

GST field visits can sound intimidating, but with a little preparation and honesty, they’re usually quick and straightforward. As a modern online seller, your business setup is different—but completely valid.

Be transparent, stay compliant, and your GST registration will go through smoothly.

Disclaimer:

This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.

Advisory on HSN Validations in Table 12 of GSTR-1

Advisory on HSN Validations in Table 12 of GSTR-1

The Goods and Services Tax (GST) authorities have issued an advisory detailing the implementation of Phase-3 for reporting Harmonized System of Nomenclature (HSN) codes in Table 12 of GSTR-1 and GSTR-1A, effective from the February 2025 return period. This phase introduces significant changes to enhance the accuracy and consistency of HSN code reporting for taxpayers.

Key Changes in Phase-3:

1. Mandatory Selection from Dropdown:

Taxpayers with Aggregate Annual Turnover (AATO) up to ₹5 crore: Required to report 4-digit HSN codes for goods and services.

Taxpayers with AATO exceeding ₹5 crore: Required to report 6-digit HSN codes for goods and services.

Turnover HSN Digits
Upto 5 crores Mandatory 4-digit HSN codes
More than 5 crores Mandatory 6-digit HSN codes

Manual entry of HSN codes is now restricted. Taxpayers must select the appropriate HSN code from a predefined dropdown list. Upon selection, a customized description from the HSN master will auto-populate in a new field labeled “Description as per HSN Code.”

2. Validation of Supply Values:

• The system will validate the values of Business-to-Business (B2B) and Business-to-Consumer (B2C) supplies reported in various tables against the values in Table 12.

• Initially, these validations will operate in a warning mode, allowing taxpayers to file GSTR-1 even if discrepancies are detected. However, if B2B supplies are reported in other tables, the B2B tab in Table 12 cannot be left empty.

In Table-12 validation with regards to value of the supplies have also been introduced.

1) These validations will validate the value of B2B supplies shown in different Tables viz: 4A, 4B, 6B, 6C, 8 (recipient registered), 9A, 9B (registered), 9C (registered), 15 (recipient registered), 15A (recipient registered) with the value of B2B supplies shown in table-12.

2) Similarly, validations will validate the value of B2C supplies shown in different tables viz: 5A, 6A, 7A, 7B, 8 (recipient unregistered), 9A (export), 9A (B2CL), 9B (unregistered), 9C (unregistered), 10, 15 (recipient unregistered), 15A (recipient unregistered) with the value of B2C supplies shown in Table-12.

3) In case of amendments, only the differential value will be taken for the purpose of validation.

3. Enhancements in Table 12:

Segregation of Supplies: Table 12 is now divided into two tabs: “B2B Supplies” and “B2C Supplies.” Taxpayers must enter HSN summary details separately under each tab.

Downloadable HSN Code List: A new “Download HSN Codes List” button allows taxpayers to download an Excel file containing the updated list of HSN and SAC codes along with their descriptions.

Searchable “Product Name as in My Master”: This feature enables taxpayers to search and select descriptions from their HSN master. Upon selection, the corresponding HSN code, description, Unit Quantity Code (UQC), and quantity will auto-populate. This functionality is optional.

Conclusion:

These changes aim to streamline the HSN reporting process, reduce errors, and ensure compliance with GST regulations. Taxpayers are advised to familiarize themselves with these updates and adjust their reporting processes accordingly to ensure a smooth transition.

For a detailed understanding, refer to the official advisory issued by the GST authorities by clicking here.

A Comprehensive Guide to GST Registration and Required Documents

A Comprehensive Guide to GST Registration and Required Documents

In today’s business landscape, Goods and Services Tax (GST) registration is essential for businesses to operate legally and efficiently. GST is a unified indirect tax that has streamlined taxation across India, eliminating multiple state and central levies. If your business meets the eligibility criteria, obtaining GST registration is mandatory. In this blog, we will discuss the significance of GST registration, the eligibility criteria, and the documents required for a smooth registration process.

What is GST Registration?

GST registration is the process of obtaining a unique GST Identification Number (GSTIN) from the tax authorities. It enables businesses to collect GST from customers and claim input tax credits on purchases. A GST-registered entity must comply with tax regulations, including timely returns filing and tax payments.

Who Needs to Register for GST?

Businesses and individuals are required to register for GST under the following conditions:

  1. Turnover Criteria: Businesses with an annual turnover exceeding Rs. 40 lakh (for goods) and Rs. 20 lakh (for services) must register for GST. In special category states, the threshold is Rs. 10 lakh.
  2. Interstate Business: Any business involved in interstate supply of goods or services must register for GST, regardless of turnover.
  3. E-commerce Operators: Businesses selling through e-commerce platforms like Amazon, Flipkart, or their own online store must register for GST.
  4. Casual Taxable Persons: Businesses operating on a temporary basis, such as seasonal businesses or event-based sellers, must obtain GST registration.
  5. Voluntary Registration: Any business can opt for voluntary GST registration to avail input tax credit and enhance market credibility.

Documents Required for GST Registration

The required documents for GST registration vary based on the type of business entity. Here’s a detailed list:

1. Sole Proprietorship

  • PAN card of the proprietor
  • Aadhaar card of the proprietor
  • Passport-sized photograph
  • Bank account details (cancelled cheque or bank statement)
  • Business address proof (electricity bill, rent agreement, NOC from owner, etc.)

2. Partnership Firm

  • PAN card of the firm
  • Partnership deed
  • PAN and Aadhaar of all partners
  • Passport-sized photographs of partners
  • Bank account details
  • Business address proof

3. Private Limited Company / LLP / Public Limited Company

  • PAN card of the company
  • Certificate of incorporation issued by MCA
  • Memorandum of Association (MoA) and Articles of Association (AoA)
  • PAN and Aadhaar of directors
  • Digital Signature Certificate (DSC) of an authorized signatory
  • Board resolution authorizing GST registration
  • Business address proof
  • Bank account details

4. Hindu Undivided Family (HUF)

  • PAN card of HUF
  • Aadhaar of Karta
  • Passport-sized photograph of Karta
  • Bank account details
  • Business address proof

How to Apply for GST Registration?

The GST registration process is straightforward and can be completed online through the GST portal. Follow these steps:

  1. Visit the official GST portal (https://www.gst.gov.in/).
  2. Click on “New Registration” and fill in the required details.
  3. Upload the necessary documents as per your business structure.
  4. Verify with an OTP sent to your registered mobile number and email.
  5. Receive the Application Reference Number (ARN) for tracking.
  6. After verification by tax authorities, the GSTIN is issued.

Conclusion

GST registration is a crucial step for businesses to ensure compliance with tax laws and take advantage of input tax credits. Having the right documents ready can help streamline the process. If you need assistance, consulting a tax expert can help you navigate the registration process efficiently.

For more business-related tax updates, stay tuned to our blog!

Disclaimer:

This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.