# Tax for Instagram, WhatsApp & Social Sellers

> Selling through Instagram, WhatsApp or payment links is a business like any other. GST registration is needed once turnover crosses ₹40 lakh for goods (₹20 lakh for services), or from the start for inter-state sales of goods. Income is taxed as business income — small sellers can use presumptive taxation under Section 44AD (6% of digital receipts) — and UPI and gateway receipts are increasingly visible in the tax department's data.

Practice: E-commerce Seller Services — https://www.industax.com/services/ecommerce/

Social sellers usually ship across states, which can make GST registration mandatory even at small sizes for goods. Services such as coaching or design work have a higher threshold for inter-state supplies.

We help decide on registration, set up simple invoicing and bookkeeping, and file ITR-4 under presumptive taxation where it fits.

## Key facts

| Item | Detail |
| --- | --- |
| GST threshold | ₹40 lakh goods / ₹20 lakh services |
| Inter-state goods | Registration needed regardless of turnover |
| Income tax | Business income; 44AD at 6% of digital receipts |
| Form | ITR-4 (presumptive) or ITR-3 |

## Who needs this

- Home bakers, boutiques and resellers on social media
- Creators selling merchandise
- Coaches and freelancers selling via links

## What's included

- GST applicability review
- Invoicing and bookkeeping setup
- ITR filing

## Documents

- UPI and gateway statements
- Purchase bills
- Bank statements

## Process

1. **Assess** — GST and tax position checked.
2. **Set up** — Invoices and records organised.
3. **File** — Returns filed on time.

## FAQs

### Do I need GST if I ship to customers in other states?

For goods, inter-state supply generally requires registration regardless of turnover. For services, the ₹20 lakh threshold applies even to inter-state supplies.

### Will the tax department know about my UPI income?

Large or frequent receipts can appear in your Annual Information Statement through bank and payment-aggregator reporting, so it is best to declare business income properly.

### Can I use 44AD for a home business?

Yes, if you are a resident individual and turnover is within the limit; declare at least 6% of digital and 8% of cash receipts as income.

## Official sources

- GST portal: https://www.gst.gov.in/
- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/ecommerce/social-commerce-sellers-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.