India sellers must have a GSTIN on file. Add it in your Legal and tax information. You can check that your GSTIN is active and valid and apply for one on the Goods and Services Tax site.
As of October 1, 2023, Etsy periodically checks whether sellers have an active and valid GSTIN on file. If you don't, Etsy may restrict you from selling on Etsy and withhold your payout.
Starting November 1, 2023, Etsy is required to collect and remit 1% Tax Collected at Source (TCS) on your behalf for any transactions through India payments (RazorPay) and Etsy Payments (Payoneer). To report your TCS to the Indian Tax Authorities (ITA), we need an active and valid GSTIN. If you haven't provided an active GSTIN, the Indian Tax authorities will be unable to assign amounts withheld by Etsy to your account.
India sellers are subject to tax deducted at source (TDS) on all sales. Etsy remits the TDS to the Indian Tax Administration (ITA) as required by Indian law.
Etsy will report the amounts under the Tax ID provided by sellers, and sellers will be able to avail of a credit in their tax account with the ITA for the amounts remitted by Etsy.
What percentage of my sales does Etsy withhold and remit to Indian tax authorities?
The amount of TDS that Etsy applies to your sales depends on your taxpayer ID(s) on file on Etsy.
Tax deducted at source (TDS) applies to all sales made by a seller in India.
Also, Etsy collects 18% GST on all seller services when a seller hasn’t provided a GSTIN. Learn how tax is collected on seller fees.
| Withhold from sellers | GSTIN provided by seller | PAN provided by seller, no GSTIN on file |
No tax ID provided |
| Tax Deducted at Source - Applied to all transactions | 1% | 1% |
5% |
Example with an order of $100
| Withhold from sellers | GSTIN provided by seller | PAN provided by seller, no GSTIN on file |
No tax ID provided |
| Tax Deducted at Source - Applied to all transactions | $1 | $1 |
$5 |
How do I add a GSTIN or PAN on Etsy?
- Sign in to Etsy and go to Shop Manager.
- Open Finances.
- Select Legal and tax information.
- Add your GSTIN and/or PAN under Primary Taxpayer ID.
- Choose Submit to Etsy.
Your address on the Legal and tax information page must be set to your Indian address before you can provide us with your PAN.
Learn more about updating your taxpayer information.
How do I get a GSTIN number?
To get a GSTIN, apply on the Goods and Services Tax site, which walks you through how to do it with instructions and video.
Applying for a GSTIN certificate is fairly simple, but it can take a few weeks for you to receive the GSTIN number from the tax authorities.
A GSTIN is a combination of 15 numbers and letters, starting with 2 numbers.
Once you’re registered with GST, you may be obligated to pay GST to tax authorities on the goods you sell.
What if I provide Etsy with my GSTIN or PAN mid-month?
You can update your taxpayer ID at any time. Any changes to the taxpayer ID on file with Etsy may affect the % of TDS for the month in which you make the update, and onwards.
For example, if you previously didn’t have a taxpayer ID on file, and then added your GSTIN to your Etsy account on May 10, then starting May 10, any new orders will have 1% TDS applied.
Also, TDS amounts will be adjusted for any orders made earlier in May. In this case, we would credit your Payment account to reflect the new TDS amounts of 1% instead of TDS amounts of 5%.
Any TDS before May are locked as they have already been reported to the Indian tax authorities.
How can I keep track of the TDS amounts?
For any eligible sales, you can view the amount of TDS in your Payment account. You’ll see a line item in your Recent activities for the amount of TDS You’ll also see the TDS in your Activity summary.
You will also be able to log in to your tax account on the tax authority portal to see the TDS remitted by Etsy.