Does a Facebook Live auction seller need GST registration — and when does it become mandatory?
A Facebook Live auction seller must register for GST when their aggregate annual taxable turnover from all numismatic sales exceeds ₹20 lakh (₹10 lakh in some special category states). Below this threshold, GST registration is not mandatory for most individual collectors. An active dealer who regularly auctions on Facebook Live and whose total annual sales exceed ₹20 lakh is legally required to register for GST, charge it on sales, and file returns — regardless of whether they are a registered business or an individual.
The CGST Act threshold — who must register
Section 22 of the Central Goods and Services Tax Act 2017 requires every supplier whose aggregate turnover in a financial year exceeds ₹20 lakh to register for GST. 'Aggregate turnover' includes the aggregate value of all taxable supplies and exempt supplies made by a supplier. For a numismatic auction seller, every lot sold on Facebook Live is a supply of numismatic goods — either coins (5% GST under HSN 9705) or banknotes (12% GST under HSN 4907).
The ₹20 lakh threshold applies to the total annual sales across all channels and formats — not just Facebook Live. A seller who sells ₹8 lakh on Facebook Live, ₹7 lakh at fairs, and ₹6 lakh in private sales has total annual sales of ₹21 lakh — above the threshold — and must register, even though no single channel exceeded ₹20 lakh.
What registration requires — for an individual seller
Once registered, the seller must: obtain a GSTIN (GST Identification Number); issue GST invoices for every supply showing the applicable GST rate and amount; file monthly or quarterly GST returns (GSTR-1 for outward supplies, GSTR-3B as summary return); and remit the collected GST to the government. For an individual collector who crosses the threshold due to an active Facebook Live auction year, the compliance burden is real — monthly filing and tax payment — and cannot be ignored simply because the sales are informal.
The grey zone — active dealers below the threshold
Most individual Facebook Live numismatic auctioneers in India operate below the ₹20 lakh threshold. Their sales are occasional or seasonal; their individual auction totals are modest. For this group, GST registration is not required. But active dealers who treat Facebook Live auctions as a significant income source — running weekly auctions with high-value lots — may cross the threshold without realising it. The GST obligation is self-assessed; there is no government notification telling you when you have crossed the threshold.
GST registration for Facebook Live sellers — the decision tree Total annual numismatic sales (all channels) below ₹20 lakh: GST registration not mandatory Total annual numismatic sales above ₹20 lakh: GST registration MANDATORY (CGST Act §22) Once registered: issue GST invoices for every sale; 5% on coins, 12% on banknotes File monthly GSTR-1 (outward supplies) and GSTR-3B (summary return) Selling through Facebook Marketplace as an 'e-commerce operator': additional TCS obligations may apply Best practice: track total annual sales; consult a GST practitioner when approaching ₹15 lakh |
Laws & authorities referenced in this chapter
CGST Act 2017 — §22 (mandatory registration when aggregate turnover exceeds ₹20 lakh)
CGST Act 2017 — GST rates: HSN 9705 (coins, 5%), HSN 4907 (banknotes, 12%)
CGST Act 2017 — e-commerce operator provisions (if selling through Facebook Marketplace)
GST registration: mandatory when aggregate annual turnover exceeds ₹20 lakh. Applies to ALL numismatic sales (not just Facebook Live). GST rates: 5% coins (HSN 9705), 12% banknotes (HSN 4907). Once registered: GST invoices required for every sale; monthly returns; remittance. Most individual collectors below threshold — but active dealers may not be. Track annual totals; consult GST practitioner when approaching ₹15 lakh.
This is educational content, not legal advice. For a specific situation, please consult a qualified legal professional. Excerpted from Currency, Coins & The Law by Mayank Agarwal, Part 17: Auctions — Formal Houses, Facebook Live & the Complete Legal Framework.