GST: Small online retailers may soon be exempted from Indirect Tax Registration
In a move that could boost the reach of small enterprises through e-commerce, small online sellers may soon be exempted from GST registration and the discussions are on between the central and state governments regarding this, according to a livemint report. Currently, all e-commerce retailers must register for GST irrespective of their turnover.
“Representations have come from the industry and trade to bring parity between online and offline sellers on the issue of GST registration, saying that the current norm comes in the way of small businesses reaching a larger customer base. Discussions are on between the central and state governments. The law committee of the GST Council will examine the matter before a decision is taken,” according to the report which quoted a source as saying.
As of now, all online sellers, irrespective of their turnover, compulsorily need GST registration, whereas those working offline need to register for GST only if they have a total annual sale of more than Rs 40 lakh. The proposal, if approved, will bring online and offline sellers on par as far as GST registration is concerned.
Apart from this, the GST Council, which is likely to meet next month, may consider a proposal to do away with the five per cent slab by moving some goods of mass consumption to three per cent and the remaining to eight per cent categories, according to reports.
