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Pathak Associates

Setup Your Online Business

End-to-end e-commerce setup.

Setting up an online business needs the same registrations as any other, in a particular order, plus one that catches almost everyone: GST registration is mandatory from the first sale for anyone selling through a marketplace, whatever the turnover, and the ₹40 lakh threshold does not apply. Beyond that it is the ordinary sequence — a structure, a PAN, GST, a current account and a payment gateway — with the additional question of where your stock physically sits, because that decides how many states you register in.

Who this is for

  • Complete setup
  • Marketplace onboarding
  • Legal structure
  • Accounting ready

The process

What we actually do

  1. 1

    We choose the structure against what you are actually building

    A proprietorship is fastest and cheapest and carries unlimited liability. An LLP or a private limited company costs more each year and limits it. For a business that will hold inventory on supplier credit or raise investment, that annual cost buys something real.

  2. 2

    We register for GST first, because the platform will not wait

    Marketplace onboarding requires a GSTIN, and registration is mandatory from the first sale regardless of turnover under section 24(ix). Doing this before the platform application avoids a listing that cannot go live.

  3. 3

    We work out where your stock will physically be

    Stock in a platform fulfilment centre in another state requires GST registration in that state. This is the single most-missed obligation for new online sellers, and it is decided by which fulfilment programme you enrol in.

  4. 4

    We set the tax and invoicing configuration up correctly

    HSN codes, the right rate, and place-of-supply rules that determine IGST against CGST plus SGST on every order. Configured wrongly at launch, this produces months of invoices that all have to be amended.

  5. 5

    We add the registrations the channel needs

    Udyam for MSME benefits and the 45-day payment protection, a current account, a payment gateway, an FSSAI licence for anything food-related, and an IEC where you will ship abroad.

Who this is for

  • Anyone starting to sell on Amazon, Flipkart, Meesho or a similar marketplace
  • Founders launching a direct-to-consumer store on Shopify or WooCommerce
  • Service businesses selling online to customers in other states
  • Existing offline businesses adding an online channel
  • Anyone selling internationally, who also needs an IEC

How long it takes

Two to three weeks from a standing start to a live listing, of which GST registration at three to seven working days and payment gateway onboarding are the longest steps. Registering in a second state for fulfilment stock adds its own cycle.

If you do nothing

The platform reports your supplies in GSTR-8 whether or not you are registered, so an unregistered marketplace seller is visible from the first month. When it surfaces, tax is computed on the full turnover of the unregistered period with no input credit allowed against it, plus interest and penalty — routinely more than the margin earned in the same period.

The law, in figures

Dates, thresholds and sections

Every figure below carries the provision it comes from, so it can be checked.
WhatFigureSource
GST registration for marketplace sellersMandatory at any turnoverSection 24(ix), CGST Act 2017
Threshold for a business's own website with no marketplace₹40,00,000 goods, ₹20,00,000 services, until interstate supply beginsSection 22, CGST Act 2017 read with Notification 10/2019
Interstate supplyRegistration mandatory at any turnoverSection 24(i), CGST Act 2017
Stock in another stateRequires registration in that stateSection 25(1), CGST Act 2017
Marketplace TCS1% collected by the operatorSection 52, CGST Act 2017
International shippingImporter Exporter Code requiredSection 7, Foreign Trade (Development and Regulation) Act 1992

What usually goes wrong

  • Waiting for the ₹40 lakh threshold while selling on a marketplace, where it does not apply
  • Enrolling in a fulfilment programme without registering in the state the warehouse is in
  • Configuring place-of-supply wrongly at launch, so months of invoices need amending
  • Selling food without an FSSAI licence, which platforms require before a listing goes live
  • Choosing a proprietorship and then carrying substantial inventory on supplier credit personally

What non-compliance costs

  • Penalty of 100% of tax due, minimum ₹10,000, for supplying while unregistered
  • Tax payable on all supplies made while unregistered, with no input credit against them
  • Listings suspended by the platform where a required registration is missing
  • Interest at 18% on tax that should have been paid from the first sale

These are statutory amounts, not our fees. What we charge depends on your situation and is quoted before any work starts.

Related services

Setup Your Online Business

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