GST Council waives GST Registration Requirements for Small Online Sellers

E-Commerce - GST Council - GST Registration - Small Online Sellers - Taxscan

The 47th GST Council held in Chandigarh has decided to allow the composition taxpayers to make intra-State supply through e-commerce operators subject to certain conditions.

The details of the scheme will be worked out by the Law Committee of the Council. The scheme would be tentatively implemented with effect from 01.01.2023, subject to preparedness on the portal as well as by ECOs.

“Waiver of requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions, such as- (a) the aggregate turnover on all India basis does not exceed the turnover specified under sub-section (1) of section 22 of the CGST Act and notifications issued thereunder. (b) the person is not making any inter-State taxable supply,” a press release issued by the government said.

The move aims at boosting the unorganized sector. The changes in the law will come into force on January 1, 2023.

The Council also allowed composition dealers to make intrastate supplies via e-commerce operators, sources said.

At present, sellers supplying through e-commerce operators (ECOs) must compulsorily be registered even if their aggregate annual turnover is below the threshold limit of Rs 40 lakh or Rs 20 lakh. Sellers who operate offline are allowed exemption from registration for supply of goods and/or services up to Rs 40 Lakh or Rs 20 lakh. The threshold amounts are Rs 20 lakh and Rs 10 lakh in select states.

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