By industry · Online sellers & D2C brands

Legal compliance for online sellers and D2C brands

Selling on a marketplace or your own website — GST, TCS, the e-commerce rules, packaging labels and the rest, with the provision for each.

Check what applies to your business — free Compliance calendar

What applies to online sellers and D2C brands

What Applies to What it involves Law
Register for GST — usually from the first sale Anyone selling goods through a marketplace that collects TCS Registration is compulsory whatever your turnover. Since 1 October 2023 a small seller within the registration threshold may sell without registering, if it sells within one state only, makes no inter-state sales, and enrols on the GST portal with its PAN first. Service sellers through a marketplace are exempt up to ₹20 lakh turnover. CGST Act, 2017, s. 24(ix); Notifications 34/2023-CT and 65/2017-CT
Claim back the TCS the marketplace collects Sellers on a marketplace The marketplace collects TCS at 0.5% of your net taxable sales (1% until 10 July 2024) and reports it in GSTR-8. Accept the entries on the GST portal and the credit reaches your electronic cash ledger. CGST Act, 2017, s. 52; Notification 15/2024-CT
Account for the income-tax TDS on your payouts Sellers paid by a marketplace The marketplace deducts 0.1% income-tax TDS on your gross sales; a resident individual with sales up to ₹5 lakh who gives PAN or Aadhaar is excluded. Claim it against your tax. Income-tax Act, 2025, s. 393 (formerly s. 194-O)
Run your own website the way the e-commerce rules require Brands selling on their own website or app Display your legal name, address, customer care and a grievance officer; acknowledge complaints within 48 hours and resolve them within a month; show return, refund, exchange, warranty and delivery terms and an all-inclusive price; use no pre-ticked consent boxes. Consumer Protection (E-Commerce) Rules, 2020, rr. 4 & 7
Meet the seller duties on a marketplace Sellers on a marketplace A written contract with the platform, your own grievance officer on the same 48-hour and one-month timelines, and your legal name, address, GSTIN, PAN, price break-up, country of origin and return terms given to the platform to display. Consumer Protection (E-Commerce) Rules, 2020, r. 6
Label every package, and show the label online Anyone selling pre-packaged goods Each package declares the maker or packer and address, country of origin for imports, common name, net quantity, month and year of manufacture, MRP inclusive of taxes, unit sale price and consumer-care details. The listing online must show the same declarations. Legal Metrology (Packaged Commodities) Rules, 2011, r. 6
Clear the product-specific rules before you list Food, products under a BIS quality control order, and plastic packaging Food needs an FSSAI licence or registration, with the label information shown online before sale. A product under a BIS quality control order cannot be sold without the Standard Mark. Brand owners using plastic packaging register for EPR on the CPCB portal; micro and small brand owners are exempt from the EPR obligation. FSS Act, 2006, s. 31; BIS Act, 2016, s. 17; Plastic Waste Management Rules, 2016, Sch. II
Issue e-invoices and e-way bills E-invoices once aggregate turnover crossed ₹5 crore in any year since 2017-18; e-way bills for consignments over ₹50,000 B2B invoices must be reported to the invoice portal, or they are not valid invoices. An e-way bill is generated before goods worth more than ₹50,000 move. CGST Rules, 2017, rr. 48(4) & 138; Notification 10/2023-Central Tax

What every business with staff or customers owes

What Applies to What it involves Law
Set up a POSH Internal Committee 10 or more employees — of any kind, including interns and part-timers Constitute the committee by written order, with an external member, adopt a POSH policy, and file an annual report. POSH Act, 2013, s. 4
Register for PF and ESI when you cross the threshold PF from 20 employees; ESI from 10, for staff within the wage ceiling Deduct and deposit contributions by the 15th of each month for the wages of the month before. Code on Social Security, 2020
Handle personal data the DPDP way Any business that collects personal data of customers or employees A clear notice, valid consent, reasonable security safeguards and breach reporting — enforceable from 13 May 2027. DPDP Act, 2023, ss. 5, 6 & 8
Get paid within 45 days as a micro or small enterprise Udyam-registered micro and small enterprises supplying goods or services A buyer must pay within 45 days of acceptance; after that, compound interest at three times the bank rate runs by law. MSMED Act, 2006, ss. 15 & 16

The dates you are most likely to owe

  • GSTR-1 (outward supplies): 11th of every month, for the month before. If late: ₹50 a day (₹20 for a nil return) until filed, up to a cap set by turnover (CGST Act, s. 47).
  • GSTR-3B return and GST payment: 20th of every month, for the month before. If late: ₹50 a day late fee (₹20 for a nil return), plus 18% a year interest on unpaid tax (CGST Act, ss. 47 & 50).
  • TDS / TCS deposit: 7th of every month for tax deducted the month before; 30 April for tax deducted in March. If late: Interest at 1.5% a month on the tax, from the date it was deducted until it is paid (1% a month for any delay in deducting it) (Income-tax Act, 2025, s. 398(3)(a) (formerly s. 201(1A))).
  • PF contributions: 15th of every month, for the wages of the month before. If late: 12% a year interest on the late contribution, and damages on top (Code on Social Security, ss. 127 & 128).
  • ESI contributions: 15th of every month, for the wages of the month before. If late: Interest on the late contribution, and damages that grow with the delay (Code on Social Security, 2020).
  • Advance tax instalment: 15 June (15%), 15 September (45%), 15 December (75%) and 15 March (100%) of the year’s tax. If late: Interest on the shortfall, month by month, until it is paid (Income-tax Act, 2025, ss. 424 & 425 (formerly ss. 234B & 234C)).
  • Income tax return — business, not audited: 31 August, for the financial year that ended on 31 March. If late: ₹5,000 late fee (₹1,000 if total income is up to ₹5 lakh), which cannot be waived once triggered (Income-tax Act, 2025, s. 428 (formerly s. 234F)).
  • Income tax return — companies and audited businesses: 31 October, for the financial year that ended on 31 March. If late: ₹5,000 late fee (₹1,000 if total income is up to ₹5 lakh), which cannot be waived once triggered (Income-tax Act, 2025, s. 428 (formerly s. 234F)).
  • DPDP Act compliance deadline: 13 May 2027 — notice, consent, security safeguards and breach reporting. If late: Up to ₹250 crore for failing to protect personal data, and up to ₹200 crore for failing to report a breach (DPDP Act, 2023, Schedule).

Documents a business like yours needs

Work out what a lapse costs

Common questions

Do I need GST registration to sell on a marketplace?

Usually yes, from the first sale: s. 24(ix) of the CGST Act makes registration compulsory for anyone selling goods through a marketplace that collects TCS. Since 1 October 2023 a small seller within the registration threshold can sell without registering — only within its own state, with no inter-state sales, after enrolling on the GST portal with its PAN (Notification 34/2023-CT).

How much TCS does the marketplace collect?

0.5% of your net taxable sales since 10 July 2024 (it was 1%). Accept the entries on the GST portal and the amount reaches your electronic cash ledger.

What must a D2C website display?

Your legal name, address, customer-care and grievance-officer details, and the return, refund, exchange, warranty and delivery terms, with an all-inclusive price. Complaints are acknowledged within 48 hours and resolved within a month (Consumer Protection (E-Commerce) Rules, 2020, rr. 4 & 7).

Before you rely on this

A checklist, not advice for your business. Several of these duties are set by each state, and most depend on your size and how you are registered — confirm with your CA before relying on any one of them.