• Want to sell my handmade goods on etsy

So i want to sell my handmade goods on etsy(its a e-commerce website selling handmade stuff).
Is CST and VAT really required to when u starting online line or we can resister later as soon as i get some turnover.
I read somewher that even for a online business you require physical location and license under shop and establishment act,but the thing is i want to sell womens wear top on etsy i will buy fabrics from local weavers and give it for stitching to some tailor outside and then i will hand paint it at home.So my  point is I live in a ranted house plus i dont hv any physical setup of my own .What should i do?

Plus they also mentioned that u need to have a curior service to deliver your products.I am selling my products through etsy not through my website ,in that case do i still need to give that detail?
Asked 10 months ago in Business Law from Hyderabad, Telangana
1) depending upon the state in which the business or person conducts his/her primary sale of goods, VAT registration would be required when the sale of taxable goods exceeds a certain threshold. The registration threshold varies by state and mostly VAT registration is required when a business sells goods in excess of Rs.5 lakhs per annum in many states. However, when a person/entity brings goods from outside the state for sale in the state or effects interstate sales, VAT registration becomes mandatory irrespective of value of the transaction

2) any business which is involved in selling goods or services to customers out of a commercial office becomes liable to register. For online sales you need not register please check whether on line sales are covered under shops and establishment act of your state 
Ajay Sethi
Advocate, Mumbai
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1. At the outset, you need to decide the form and structure of the proposed business i.e. whether proprietorship, partnership, company, etc. You can commence operation of your business as a sole proprietor which does not require registration. It can be started with a current account held by the sole proprietor.  You require physical location and license under Shops and Establishment Act. You can start from your rented property. There is no legal requirement to have a separate property for the commencement and operation of your business.

2.  For online business, you need to have your own website with unique domain name which needs to be registered and hosted on a server.

3. You should have a dedicated 24x7 customer helpline for redressal of grievances,

4. You need to have a RBI approved Payment Gateway,

5. You should have the services of a dedicated courier for delivery of products to customers,

6. There are certain goods which are completely exempt from VAT in accordance with the rules framed by the respective state govts. Many handmade products such as banarasi saree, etc fall in this category.

Ashish Davessar
Advocate, Jaipur
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Is CST and VAT really required to when u starting online line or we can resister later as soon as i get some turnover.
You can run a business that is not involved in buying and selling the goods but rather in the provision of services.  You will not be liable to collect or pay VAT/CST.  You will however be required to register with the tax authorities. An exmple of such business would be Flipkart and Amazon etc. seemingly involved in the activity of buying and selling the goods but are neither the buyer nor the seller but purely a service provider. 



I read somewher that even for a online business you require physical location and license under shop and establishment act,but the thing is i want to sell womens wear top on etsy i will buy fabrics from local weavers and give it for stitching to some tailor outside and then i will hand paint it at home.So my  point is I live in a ranted house plus i dont hv any physical setup of my own .What should i do?
You can mention this rented house itself as the address for the business contacts. 


Plus they also mentioned that u need to have a curior service to deliver your products.I am selling my products through etsy not through my website ,in that case do i still need to give that detail?
You are selling the products physically though through online orders, hence you need to follow the norms of the business formalities like getting license, getting the taxation numbers etc. 
T Kalaiselvan
Advocate, Vellore
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