Entrepreneurs venturing into Indian trade often encounter two critical registrations—Import Export Code (IEC) and Goods and Services Tax (GST) Registration. Though both are mandated by government authorities, they serve entirely different purposes. Misunderstanding the two can lead to compliance gaps, shipment delays, or unnecessary tax liabilities.
This in-depth guide demystifies IEC and GST registration, highlights when each is required, and clarifies how they complement rather than duplicate one another. If you need help securing or linking these registrations, visit OurTaxPartner.com.
1 · Definition and Governing Authority
| Import Export Code (IEC) | GST Registration |
|---|---|
| 10-digit business identification number issued by the Directorate General of Foreign Trade (DGFT). | 15-character alphanumeric number (GSTIN) issued by the Goods & Services Tax Network (GSTN) under the Central & State GST Acts. |
2 · Core Purpose
- IEC → International Trade Licence
Required to legally import goods into or export goods/services out of India, generate shipping bills, and receive foreign-currency remittances. - GST → Indirect Tax Compliance
Enables collection of GST on domestic sales, allows input-tax credit, and governs monthly/quarterly tax returns.
3 · Mandatory Scenarios
When IEC Is Mandatory
- Physical export or import of goods (even a single shipment).
- Service providers seeking export incentives (e.g., SEIS) or FIRC-based remittances.
- Amazon, Flipkart, Shopify sellers shipping products abroad.
When GST Registration Is Mandatory
- Annual turnover exceeds ₹40 lakh (₹20 lakh for services) or interstate supplies.
- e-Commerce marketplace sellers—even below threshold.
- Importing goods under reverse-charge or claiming input credits.
4 · Key Compliance Obligations
| IEC | GST |
|---|---|
|
|
5 · Interlinking IEC and GST
DGFT now requires businesses to link IEC with GSTIN and PAN to prevent data mismatches at customs. After obtaining IEC, log in to the DGFT portal and map each GSTIN to your IEC profile. Failure to link can trigger export-shipment holds or IGST refund delays.
6 · Common Misconceptions Busted
- “IEC is not needed if I have GST.” False—GST governs domestic tax, IEC governs cross-border trade.
- “IEC exempts me from GST.” False—Exports are zero-rated under GST, not exempt from registration or returns.
- “IEC is only for companies.” False—Sole proprietors and freelancers can apply using personal PAN.
7 · How OurTaxPartner.com Helps
The compliance landscape can be daunting. OurTaxPartner.com offers:
- Fast IEC registration (1-3 working days).
- GST registration and monthly return filing.
- Linking IEC with GST & PAN for seamless customs clearance.
- Ongoing advisory on export incentives and IGST refunds.
8 · Conclusion
IEC and GST serve distinctly different regulatory purposes. IEC is your ticket to global markets; GST keeps your domestic taxation in order. Most exporters will require both to remain fully compliant and maximise fiscal incentives. By understanding their differences—and by partnering with professionals—you can streamline operations, prevent costly errors, and focus on growing your business.
Need assistance? Contact OurTaxPartner.com to obtain or link your IEC and GST today.
