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GST for online sellers

Free GST Filing Tool for Online Sellers: What You Get (and What You Don't)

✓ 3 official and published sources✓ Written for Indian sellers and small businesses

A free GST filing tool can do the heaviest part of an online seller's month: turning marketplace reports into a GSTR-1 that is ready to upload. It usually will not decide your GSTR-3B payment, reply to notices or give advice. Know where that line sits before you pick one, and test it with your own files.

Key points
  • "Free" can mean a trial, a limit, or a core feature that is free for good. Ask which one.
  • The government's own route costs nothing: type entries on the GST portal, or use GSTN's Returns Offline Tool.
  • For a marketplace seller, the real work is reading the reports, netting off returns and filling the e-commerce tables.
  • No free tool replaces judgement on tax payment, input tax credit or notices.
In this guide
  1. What does "free" usually mean in GST software?
  2. What is the government's own free route?
  3. What does an online seller actually need a tool to do?
  4. A worked example: what netting off returns is worth
  5. What does a free tool not do?
  6. A checklist for choosing
  7. The mistake people usually make

What does "free" usually mean in GST software?

You have probably seen the word on every tool's home page. It tends to mean one of four things:

  • A trial. Free for some days or some returns, then paid.
  • A limit. Free up to a number of invoices, GSTINs or months.
  • Free preparation, paid output. You can see the numbers, but the download or filing step is charged.
  • A free core with paid services. The tool is free and you pay only if you want a person to file for you.

None of these is wrong. A business has to earn somewhere. The only bad outcome is finding the limit on the 10th of the month, with your return half done. Ask before you start.

What is the government's own free route?

You never need paid software to file. The GST portal lets you prepare GSTR-1, the monthly or quarterly return of your sales, in three ways: online entry on the portal, upload from GSTN's Returns Offline Tool, or upload from a third-party application.

The Returns Offline Tool is a download from the portal. You fill an Excel template, the tool makes a JSON file (the data file the portal reads), and you upload it. It needs a Windows computer and Excel 2010 or later. It does not run on Mac or Linux.

So why does anyone use anything else? Because neither route reads a marketplace report. With a few dozen invoices a month, online entry is fine. With 1,500 orders across three marketplaces, you would be building the State-wise and HSN-wise totals by hand first.

File your GSTR-1 freeAprilTax turns your Amazon, Flipkart and Meesho reports into a GSTR-1 file ready for the GST portal, with the checks done for you.
Open the free tool

What does an online seller actually need a tool to do?

  1. Read marketplace reports as they are. Amazon, Flipkart and Meesho each use their own format. A tool that wants its own template has only moved the work to you.
  2. Split B2B and B2C. Sales to GST-registered buyers go invoice by invoice. Sales to consumers go as State-wise totals.
  3. Net off returns. Returned and cancelled orders must reduce your sales, or you pay GST on money you refunded.
  4. Build the HSN summary. Table 12 needs totals by HSN code, the product classification code.
  5. Fill documents issued. Table 13 lists your invoice and credit note number ranges.
  6. Fill Table 14. This table reports sales made through e-commerce operators, marketplace by marketplace.
  7. Validate before upload. Wrong GSTINs, wrong State codes and totals that do not tally should be caught before the portal rejects the file.

A worked example: what netting off returns is worth

Say you sold goods worth Rs 6,00,000 (before GST) in October, taxed at 5%. Customers returned orders worth Rs 90,000. Rs 40,000 of the sales went to GST-registered buyers.

ItemAmount
Gross salesRs 6,00,000
Less: returnsRs 90,000
Net taxable valueRs 5,10,000
B2B part (invoice-wise)Rs 40,000
B2C part (State-wise totals)Rs 4,70,000
GST at 5% on net valueRs 25,500
TCS held back by marketplaces at 0.5%Rs 2,550

If the returns are missed, you report Rs 6,00,000 and pay Rs 30,000. That is Rs 4,500 too much in one month, or Rs 54,000 over a year at this pace. And the Rs 2,550 of TCS (tax collected at source) is yours to claim back. A tool earns its place if it gets these two things right every month.

What does a free tool not do?

  • GSTR-3B payment decisions. How much input tax credit to claim, what to reverse, how much cash to pay. That needs your purchase side and some judgement.
  • Notices. A reply to a department notice needs someone who has read your case.
  • Advice. The right HSN code, the right rate, whether to register in another State.
  • Responsibility. You sign the return. A tool prepares it. Read the summary before you file.

When is doing it yourself enough? When you sell in one State, your purchases are simple and your numbers match. When should you pay someone? When credit is large, you have several GSTINs, or a notice has arrived.

A checklist for choosing

Ask thisWhy it matters
Does it read my marketplace's report without changes?Reformatting by hand is where errors start
What exactly is free, and what is the limit?So the bill does not surprise you mid-return
Does it handle returns and credit notes?Missed returns mean overpaid GST
Does it fill HSN, documents issued and Table 14?These are the tables the portal questions most often for sellers
Does it check the data before giving a file?A rejected upload on the due date costs you a late fee
Do I get a file I can upload myself?You keep control of what is filed
Can I get a person if I am stuck, and at what fee?You will need one some day

The mistake people usually make

They choose on the word "free" and test nothing. Then they find out on the due date that the tool cannot read their Meesho file, or that the download is paid. Take last month's reports, run them through the tool in the first week of the month, and compare its totals with the return you already filed. Ten minutes will tell you more than any feature list.

How AprilTax can help

AprilTax is a free GSTR-1 tool for online sellers. You upload the sales reports you download from Amazon, Flipkart or Meesho. It prepares the GSTR-1 (B2B, B2C, HSN summary, documents issued and the e-commerce tables), runs about 30 checks, matches the TCS your marketplaces reported, and gives you a JSON file that you upload on the GST portal yourself. It does not file GSTR-3B. For that, Tax Expert services start at Rs 499 a month. Try the free GSTR-1 tool.

Frequently asked questions

Is there a free way to file GST returns in India?
Yes. Filing on the GST portal is free. You can enter GSTR-1 details online on the portal, or prepare them in the Returns Offline Tool from GSTN and upload the JSON file. Paid software is a convenience, not a requirement.
What is the GSTN Returns Offline Tool?
It is a download from the GST portal for preparing GSTR-1 data offline. You fill an Excel template, the tool creates a JSON file, and you upload that file on the portal. It needs Windows and Excel 2010 or later, and does not run on Mac or Linux.
Can the GST portal read Amazon, Flipkart or Meesho reports directly?
No. The portal and the offline tool expect data in their own format. You have to convert marketplace reports into B2B invoices, State-wise B2C totals, an HSN summary and the other tables yourself, or use a tool that does it.
What should a GST tool for online sellers do?
It should read marketplace reports as downloaded, split B2B and B2C sales, reduce sales by returns, build the HSN summary in Table 12, fill documents issued in Table 13 and e-commerce sales in Table 14, and check the data before giving you a file to upload.
What does a free GST tool usually not do?
It usually does not decide your GSTR-3B payment or input tax credit, reply to department notices, or give tax advice. Those need your purchase data and a person who has looked at your case.
Is the AprilTax GSTR-1 tool free?
Yes. AprilTax is a free GSTR-1 tool for online sellers. It prepares the GSTR-1 from Amazon, Flipkart or Meesho sales reports, runs about 30 checks and gives a JSON file that you upload on the GST portal yourself. Filing by a Tax Expert is a separate paid service from Rs 499 a month.
How do I test a free GST tool before trusting it?
Run last month's marketplace reports through it early in the month and compare its totals with the return you already filed. Check that returns are deducted, the HSN summary tallies and you can download the output file without paying.

File your GSTR-1 free

AprilTax turns your Amazon, Flipkart and Meesho reports into a GSTR-1 file ready for the GST portal, with the checks done for you.

Open the free tool
D
CA Daxit

A Chartered Accountant on the AprilTax team who works with online sellers and small businesses every filing season.

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