Key Highlights
- The Government has decided GST exemption for registration of suppliers on an e-commerce having less than INR 40 lakh turnover will boost online sales of goods and industry players.
- The GST council has determined to ease the process for intra-state supplies done through e-commerce portals.
- It is likely to be effective from January 1, 2023.
- The founders of top e-commerce sites like Meesho, Flipkart, and KPMG shared their insights on this decision.
Decision Of GST Council for GST Exemption
Recently, Government has decided for GST Exemption on registration for online sellers having less than INR 40 lakh turnover to boost online sales of goods and industry players. The Goods and Services Tax (GST) council has taken this step to ease the process for intra-state supplies made through e-commerce portals.
Now, the suppliers with less than INR 40 lakh and INR 20 lakh for goods and services respectively will not have to obtain the GST registration. This would be effective from January 1, 2023.
Statements Given By e-Commerce Founders
Meesho Founder and CEO, Vidit Aatrey said that the 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. 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,” Aatrey said.
He said that in 2022, around 60 percent of small businesses looking to come online on Meesho dropped off on account of GST requirements.
Flipkart, Chief Corporate Affairs Officer, Rajneesh Kumar said that the decision will encourage and provide a boost to the digital India agenda of the country besides helping these small businesses grow and prosper.
“This will reduce the compliance burden for small businesses especially, artisans, weavers, handicraft makers, artists, and homemakers to access markets through e-commerce and smoothen their on-boarding on these digital platforms,” Kumar said.
KPMG in India Indirect Tax Partner, Abhishek Jain said in line with the government’s agenda to facilitate e-commerce in India, various compliance bottlenecks have been done away with for the e-commerce sector while allowing suppliers to e-commerce platforms to operate under a composition scheme.
“This change will specifically help with the compliance burden of such suppliers and will invite more players in the market to route their business through e-commerce websites,” Jain said.
For more such amazing news in the E – Commerce sector Click Here
