Good news might come anytime soon as the GST govt may exclude small ecommerce sellers from registration. This may motivate entrepreneurs and further boost e-commerce business in India. Furthermore, this may also provide relief to small e-commerce sellers who had already been hit by the pandemic. Let’s read the latest update of the GST govt may exclude small e-commerce sellers from registration.
Current GST Scenario for E-Commerce Sellers
As per GST Rules and regulations, it is mandatory to have GST Registration for e-commerce sellers regardless of their turnover. Furthermore, E-Commerce sellers also need to do GST Return Filing. People also need to have mandatory GST Registration if they wish to sell on third-party e-commerce platforms such as Amazon, Flipkart and Meesho.
Latest updates as GST govt may exclude small e-commerce sellers from registration
Enterprises in the industry and commerce have called for a change in the rules on GST registration, arguing that the existing system prevents small businesses from gaining access to a bigger client base. The central and state governments are engaged in a dialogue. According to the sources, the legal committee of the GST Council would research the matter in detail before a decision is made.
It is also expected that the administration would cut the number of GST tax brackets from four to three. Instead of the 12 percent and 18 percent slabs, a new median slab of 15 percent may be implemented, according to a source. Furthermore, 5% tax rate might be increased up to 6% or 7%. However, the focus will be on tweaking the tax slabs in a way that there are no more than four tax slabs under GST.
Positive Impact if Small E-Commerce sellers are exempted from GST Registration
Micro, small and medium companies (MSMEs), self-employed persons, self-help organizations, and craftsmen would be able to sell their items online without incurring GST registration and GST Return Filing expenses as a result of the shift.
It is mandatory to file GST Returns even if there are no transactions. Otherwise, you have to pay the penalties.
Moreover, If you want any other guidance relating to the Please small e-commerce sellers from GST Registration feel free to talk to our business advisors at 8881-069-069.
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