Enrolment ID Seller Crossed GST Limit: What to Do Next
If you sell on an enrolment ID and your turnover crosses the GST limit, the exemption that let you sell without GST ends. You must apply for GST registration within 30 days of crossing. Once the GSTIN is granted, the enrolment ID stops being valid and you start charging GST and filing returns.
- The exemption in notification 34/2023-Central Tax holds only while your turnover stays within the registration limit: Rs 40 lakh for most goods sellers, lower in some States.
- Section 25 of the CGST Act gives you 30 days from the day you become liable to apply.
- Apply within those 30 days and you can claim input tax credit on the stock you hold.
- The enrolment number ceases to be valid from the effective date of your registration.
- The marketplace reports your sales against the enrolment ID every month, so the department can see the turnover.
In this guide
What changes on the day you cross the limit?
You joined Meesho or another marketplace with an enrolment ID because your business was small. Orders grew. One day the year's total goes past the limit. Does the enrolment ID keep working?
Not in law. The notification exempts a marketplace seller from registration only if turnover in the previous year and in the current year does not exceed the limit in section 22. The day you cross it, that condition fails and you become a person liable to register. The ID may still open in the app for a while. That does not mean the exemption continues.
Which limit applies to you? For someone who sells only goods it is Rs 40 lakh in most States and less in a few. The State-wise figures are in the GST registration limit explained. And how is turnover counted? For your whole PAN: marketplace sales, shop sales, exempt sales, everything, without GST.
Before and after: what is different?
| Point | On enrolment ID | After GST registration |
|---|---|---|
| GST charged to buyers | None | Charged on every sale |
| Where you can sell | Buyers in your own State only | Buyers anywhere in India |
| TCS by the marketplace | Not collected | Collected at 0.5% of net taxable sales, and credited back to you |
| Returns to file | None | GSTR-1 and GSTR-3B |
| Input tax credit on purchases and marketplace fees | Not available | Available |
| Number of marketplaces and States | One State or Union territory | No such bar |
What to do, step by step
- Fix the date you crossed. Add up sales for the financial year from all sources under your PAN, day by day if needed. Write the date down and keep the working.
- Apply for registration within 30 days of that date. The form is GST REG-01 on the GST portal. The steps are in the online registration process and the papers in documents for a proprietorship.
- Take stock on the day before you became liable. List raw material, semi-finished and finished goods, with the purchase invoices that show GST. This list supports your credit claim.
- Add the GSTIN to your marketplace account as soon as it is granted, and stop using the enrolment ID.
- Rework your prices and HSN codes. Listing prices now include GST. If you keep the same price, part of it goes to tax.
- Claim the credit on stock. Section 18 allows it for tax invoices not older than one year. The claim is made through a declaration on the portal, which carries its own time limit, so do it right after registration.
- Start filing. GSTR-1 and GSTR-3B from the first tax period of registration, even for a month with few sales.
A worked example
Sunita sells kurtis from Jaipur through one marketplace on an enrolment ID. Her limit is Rs 40 lakh. Her sales from 1 April 2026 reach Rs 40,10,000 on 18 August 2026.
If she acts in time. She has until 17 September 2026 to apply. She applies on 1 September. On 17 August she held fabric bought for Rs 3,00,000 plus 5% GST of Rs 15,000, all on tax invoices from this year. She can claim Rs 15,000 as input tax credit. From now on a kurti listed at Rs 525 is Rs 500 of value and Rs 25 of GST, taking the rate as 5%. If she wants to keep Rs 525 in hand, she has to list at Rs 551.
If she lets it slide. Suppose she carries on with the enrolment ID and sells another Rs 9,00,000 before anyone notices. The department can treat those sales as taxable. If the price is taken as inclusive of tax, the tax works out to Rs 9,00,000 x 5 / 105 = Rs 42,857. She cannot recover it from buyers now, so it comes from her pocket, with interest. Section 122 adds a penalty for not registering: Rs 10,000 or the tax evaded, whichever is higher. And having missed the 30 days, she loses the Rs 15,000 credit on stock.
The first path costs her some paperwork. The second can cost close to Rs 1 lakh. How the tax for the gap period is finally worked out depends on the facts, so take advice before you reply to any notice.
Can the department see that you crossed?
Yes. The marketplace files Form GSTR-8 every month and reports the sales of each unregistered seller against the enrolment number. The portal manual says the system warns the marketplace while saving the form if a seller's turnover has crossed the registration limit. Marketplaces also ask for a GSTIN once sales near the limit. So this is not something that stays hidden.
Other reasons the enrolment ID stops being enough
Turnover is not the only trigger. The same notification bars you from selling to another State and from selling through marketplaces in more than one State or Union territory. If you want either, you need a GSTIN even at Rs 5 lakh of sales. The conditions are set out in selling on Meesho without GST.
Is composition an option after you register? It can be for some sellers, with limits on where you sell. See the composition scheme for online sellers.
The mistake people usually make
The first is counting only one marketplace. The limit is for your PAN. Sales from your shop, from WhatsApp orders and from a second business in your name all add up.
The second is waiting for the marketplace to block the account. The 30 days run from the day you crossed, not from the day you got a warning mail.
The third is forgetting the stock. Sellers register, start charging GST on goods made from old fabric, and never claim the tax they paid on that fabric.
Sources
- Notification 34/2023-Central Tax: exemption for marketplace sellers and the enrolment number (GST Council) (checked 12 Nov 2026)
- Notification 37/2023-Central Tax: what the marketplace must do (GST Council) (checked 12 Nov 2026)
- CGST Act, sections 18, 22, 25 and 122 (CBIC copy of the Act) (checked 12 Nov 2026)
- GST portal manual: Form GSTR-8, supplies by unregistered suppliers (checked 12 Nov 2026)
- Notification 10/2019-Central Tax: Rs 40 lakh limit for goods (GST Council)
How AprilTax can help
If you have crossed the limit or are close to it, a Tax Expert at AprilTax can handle your GST registration for Rs 1,499. After that, GSTR-1 and GSTR-3B filing is Rs 499 a month, so you move from enrolment ID to regular returns with someone checking the numbers.
Frequently asked questions
What happens if my turnover crosses the GST limit while selling on an enrolment ID?
How many days do I get to apply for GST after crossing the limit?
Is the limit Rs 20 lakh or Rs 40 lakh for an online seller of goods?
Can I claim GST paid on stock bought before registration?
What is the penalty for not taking GST registration after crossing the limit?
Can I keep selling on the enrolment ID until the GSTIN comes?
Does my shop turnover count along with marketplace sales?
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