Relief for Small Online Sellers: 56th GST Council Approves Concept of Unified Registration Scheme

The 56th GST Council held on 3rd September 2025 has given in-principle approval to the concept of a simplified GST ( Goods and Services Tax ) registration mechanism for those making supplies through electronic commerce operators (ECOs).

Under the current system, such suppliers are required to obtain separate registrations and maintain a principal place of business in each State where they operate, often creating huge GST compliance issues.

The proposed Unified Registration Scheme is expected to remove these issues by allowing small suppliers to operate across multiple States without the need for multiple registrations. This will impact positively on the small online suppliers and it will expand the business base of such suppliers. This is really a support system from the government.

The Council has stated that the detailed modalities for implementing the scheme will be worked out and presented before it in the coming meetings. After it is put into action, the scheme will allow small online sellers to engage in e-commerce with greater autonomy, promoting entrepreneurship and expanding digital trade nationally.

The press release states that “The Council approved in-principle, the concept of a simplified GST registration mechanism for small suppliers making supplies through e- commerce operators (ECOs) across multiple States facing challenges in maintaining principal place of business in each State as currently required under the GST framework. The detailed modalities for operationalizing the said scheme will be placed before GST Council. It will ease compliance for such suppliers and facilitate their participation in e- commerce across States.”

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