Hello Mr. Pulkit,

I have a small bussiness of Handmade Gift boxes and I want to sell my products online in Snapdeal, Flipkart etc. but my turn over is surely less than 5 lakhs and VAT registration is not mandatory for my bussiness. But as per Snapdeal or Flipkart policy VAT registration is mandatory. I dont have any stores or business address. I am doing it from my home only. Kindly suggest how to proceed with online bussiness without a TIN/VAT registration.


Ankita Chakraborty

Posted 1 year, 6 months ago by Ankita Chakraborty

Hi Anita,

As per Vat rules and laws, you do not require VAT upto tunover/sales of 10 Lakhs. But the laws requires you to take VAT registration if you trade out of Karntaka state.

As a seller on amazon, Snapdeal or flipkart your buyers are not limited to Karntaka and you will be selling all over India.

Since you will be involved into interstate trade, you need to take VAT registration regardless of your sales.

You need to have a commercial establishement for VAT registration.

Posted 1 year, 6 months ago by CA Pulkit Sharma

As pulkit told, you should have a commercial establishment to obtain VAT Registration. When you deal with sale of goods outside karnataka, in such scenario the limit of your turnover cannot be considered.

Posted 1 year, 6 months ago by Mukesh Jain CA

Dear sir

I am planning to start a manufacturing unit in mangalore,and the machineries are from other state.i came to know that if i have TIN No i have to pay only 2%CST on c form.

as my unit is not started and not got ready (as mchineries yet to arrive)can i get the TIN No?


Posted 1 year, 6 months ago by jini jacob

Yes you can get the TIN number if you already have the business place. You can buy it at 2% only if you have TIN.

Posted 1 year, 6 months ago by CA Pulkit Sharma

Thanks for reply, so during their inspection only building is enough? After getting CST only I have purchase machineries.

Posted 1 year, 6 months ago by jini jacob

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