In a move that could help those in the unorganized sector The GST Council has decided to give a massive relief to businesses. The GST Council has decided to allow small E-Commerce Sellers to not have GST registration or apply for composition scheme.
This means GST Registration is now not mandatory for some small businesses selling their goods or services on the internet. However, there are some conditions that will decide whether your business will be GST Registration exempted or not.
Moreover, the sellers on E-Commerce portals will also be allowed to register under the Composition scheme if they satisfy the eligibility criteria. This article discusses the latest updates on E-Commerce can apply for Composition scheme under GST Registration.
Govt’s Announcement on E-Commerce can apply for Composition Scheme
It was announced in the 47th GST Council Meeting that the GST Council has now allowed businesses that have an annual turnover up to 1.5 crore can now register for the composition scheme under GST Registration. This update also applies for the sellers supplying goods and services intra-state via E-Commerce Operators. The changes to the law will be in effect on January 1st, 2023.
It means online businesses with annual turnover up to ₹1.5 crore can now have GST Registration online and avail the Composition Scheme’s benefits starting from the new year 2023.
What is the Composition Scheme under GST Registration?
The Composition Scheme is an easy and beneficial scheme under GST for taxpayers. Small taxpayers can get rid of tedious GST formalities such as monthly GST Return Filing and pay GST at a fixed rate of turnover.
To understand the Composition Scheme under GST Registration in detail, you can visit: Composition Scheme Under GST| GST Registration or contact our GST Experts at: 8881-069-069.
Government’s Decision on GST Exemption for E-Commerce Sellers
To bring parity between online and offline suppliers, the GST Council waived mandatory GST registration requirement for those entities that have an annual turnover of up to Rs 20 lakh and those not making any inter-state taxable supply.
As per the official statement, the notification the amendments have been made to Section 22 of the CGST Act. Therefore, if you are running an online business having an annual turnover of up to Rs. 20 lakhs and not making any inter-state taxable supply, you will not be required to register under GST.
However, businesses having valid and active GST Registration Certificate may continue to run their business as usual and avail the several benefits of GST Registration. These taxpayers can also avail the benefits of composition scheme if eligible as mentioned above.
GST Registration can not be canceled for non-filing of GST Returns
Moreover, If you want any other guidance relating to GST Registration, please feel free to talk to our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates narrating to your business.