Is dropshipping legal in india

 

Yes, dropshipping is legal in India. It is a business model where you sell products without holding inventory, and your supplier ships directly to the customer. However, to operate legally, you need to follow certain regulations:

Legal Requirements for Dropshipping in India

1. Business Registration – You may need to register your business as a sole proprietorship, partnership, LLP, or private limited company.
2. GST Registration – If your revenue exceeds ₹40 lakh (₹20 lakh for some states), GST registration is mandatory.
3. Import Regulations – If sourcing from international suppliers (e.g., Alibaba, AliExpress), follow customs laws and import duties.
4. Consumer Protection Laws – Ensure product quality, accurate descriptions, and a refund/return policy.
5. Payment Gateway Compliance – Use legal payment gateways like Razorpay, PayU, or Instamojo that comply with RBI regulations.

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