E-Commerce Edge: Wednesday Insights: GST Registration Insights
As you are aware, we are coming up with the E-commerce updates every Wednesday. As promised in our last article we are now addressing towards the taxation part in India. Let’s first start with the GST related recent update.
Until now, individuals aiming to establish an e-commerce business, such as a new start ups were required to obtain GST registration, even if their turnover did not exceed the threshold limit.Now what happen to new start-ups? Like all the enthusiasm of new business goes down when it comes to compliance part. And of course the cost of the compliance and managing the data.
Furthermore, the Composition Scheme was not accessible to e-commerce entrepreneurs.In order to promote and support e-commerce business, to encourage people and many more other factors recent changes have been made.
Now anyone can do business through ecommerce without talking registration if they are not crossing the threshold limit and also in the same state. Furthermore they can opt for composition scheme as well.
The mandate for GST registration will go away with in joining e-commerce operators and Composite taxpayers are now allowed to join e-commerce operators for intra state supply only without GST Registration. It’s really a welcome move towards doing ease of business..This will come into effect from 1/10/2023.
Let’s explore notifications in detail:
Condition to do business through ECO without having registration under GST Act (Notification No. 34)
• Not to make any inter-State supply of goods.
• Not to make supply of goods through electronic commerce operator in more than one State or Union territory.
• Required to have a Permanent Account Number.
• Declare the PAN and Place of business.
• Have been granted an enrolment number on the common portal on successful validation of the Permanent Account Number.
• Such persons shall not be granted more than one enrolment number in a State or Union territory.
• No supply of goods shall be made by such persons through electronic commerce operator unless such persons have been granted an enrolment number on the common portal.
•Where such persons are subsequently granted registration under section 25 of the said Act, the enrolment number shall cease to be valid from the effective date of registration.
• NOTIFICATION 34 https://taxinformation.cbic.gov.in/view-pdf/1009812/ENG/Notifications
Special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by composition taxpayers. (Notification 36)
• The electronic commerce operator shall not allow any inter-State supply of goods through it by the said person.
• The electronic commerce operator shall collect TCS.
• The electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.
• NOTIFICATION 36 https://taxinformation.cbic.gov.in/view-pdf/1009818/ENG/Notifications
Special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by unregistered persons. (Notification 37)
• Enrolment number has been allotted on common.
• Any inter-State supply of goods through e-commerce portal is not allowed.
• Can not collect tax at source.
• Electronic commerce operator shall furnish the details of supplies of goods made through it by the said person in the statement in FORM GSTR-8 electronically on the common portal.
• NOTIFICATION 37 https://taxinformation.cbic.gov.in/view-pdf/1009819/ENG/Notifications
Are you aware of these recent developments? Have you been operating your business with mandatory GST registration due to the previous regulations? We'd love to hear your thoughts and experiences on these changes. Please stay tuned for our next article, where we will provide you with more updates and insights to keep you informed.
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