Legal & Tax Basics for Selling Online in India (Explained Simply)
Legal & Tax Basics for Selling Online in India (Explained Simply)
Quick note: This is guidance, not a substitute for advice from your CA or legal expert.
1. Business Identity
Before selling seriously:
- Register your business entity (as applicable)
- Use consistent legal name on invoices, website and bank
2. GST & Invoicing
If you are under GST regime:
- Display GST details on invoices
- Apply correct tax rates for your product category
- Handle interstate vs intrastate (IGST vs CGST/SGST)
Your ecommerce setup should:
- Generate compliant invoices
- Capture billing & shipping details correctly
3. Transparent Pricing
Best practices:
- Show prices inclusive of all taxes where possible
- Disclose shipping and COD charges before final payment
- Avoid hidden fees in the last step
4. Data & Privacy
Even a small store should:
- Protect customer information
- Use secure checkout (HTTPS)
- Have a clear privacy statement
5. Content, Claims & Authenticity
As order volume grows:
- Don’t make false claims (health, results, etc.)
- Use original photos or licensed assets
- Clearly identify genuine products and authorised sellers
