Ease in GST registration norms will benefit around 120,000 small traders
GST council has waived the requirement of mandatory registration under section 24(ix) of the CGST Act for person supplying goods through ECOs
Parul July 1, 2022
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47th Goods and Services Tax (GST) council meeting held in Chandigarh, has given relief in mandatory GST registration norms for the small business including the travel sector and small traders.
Coming under the effect from January 1st, 2023, the new norms approve the relaxation in the provisions for suppliers making supplies through E-Commerce Operators (ECOs).
The Group of Ministers (GoMs) has waived the requirement of mandatory registration under section 24(ix) of the CGST Act for person supplying goods through ECOs, subject to certain conditions, such as-
- The aggregate turnover on an all-India basis does not exceed the turnover specified under sub-section (1) of section 22 of the CGST Act and notifications issued thereunder.
- The person is not making any inter-State taxable supply
Additionally, from the 1st of the next year, the composition taxpayers would be allowed to make intra-State supply through e-commerce operators subject to certain conditions. According to the officials, these relaxations in mandatory norms of GST registration are going to benefit approximately 120,000 small traders all across the country.
Applauding the move taken by the GST council, the Founder and CEO of Meesho, Vidit Aatrey said, “This step brings much-needed parity between offline and online businesses. With an estimated 5 crore MSMEs currently unable to sell online due to compulsory GST requirements, this game-changing measure can be an enabler for millions of small units including artisans, boutiques and mom-and-pop stores.”
For instance, he explained, “In 2022, approximately 60 per cent of small businesses looking to come online on Meesho dropped off on account of GST requirements. While MSMEs will benefit from a much larger addressable market, increased efficiencies and easier access to capital, the move will spur the Indian economy and unlock massive tax revenues for state governments.”