Industry physique Nasscom on Thursday mentioned the choice of the GST Council to waive necessary registration requirement for on-line sellers as a part of the composition scheme will assist small sellers to have a degree taking part in subject.
The composition taxpayers, making interstate provides by e-commerce operators, will yield further avenues for progress to small sellers.
“…waiving off the mandatory registration requirement for person supplying goods through online marketplaces as a part of composition scheme is a positive development for small sellers selling online, enabling small sellers to have a level playing field (vis-à-vis offline sellers) and transform themselves into organised players,” the apex IT affiliation mentioned in an announcement.
Nasscom welcomed the choice of the GST Council on the in-principle approval for leisure within the provisions for suppliers making provides by E-Commerce Operators (ECOs).
“The composition taxpayers would now be allowed to make intra-state supply through e-commerce operators subject to certain conditions. This will give additional avenues of growth to small sellers and provide them the opportunity to sell across India without having a physical Principal Place of Business (PPoB) in each state, thus increasing efficiency and bringing ease of doing business in India,” Nasscom mentioned.
This would additionally encourage such sellers to undertake GST compliances successfully as composition sellers are exempted from the upkeep of elaborate accounts and information.
Nasscom additionally described GoM’s advice on IT reforms as “another big move”.
“Putting in place the AI/ML (Artificial Intelligence/Machine Learning) based mechanism to verify the antecedents of the registration applicants, and improved risk-based monitoring of their behavior post-registration will help the government in identifying non-compliant taxpayers at an initial stage and will help in minimising risk to the exchequer,” it added.
This would assist determine non-compliant taxpayers at an early stage, so applicable motion could possibly be taken to minimise the danger of the exchequer, it identified.
The GST Council has determined to ease the method for intra-state provides made by e-commerce portals.
Now, such suppliers won’t need to receive GST registration, if their turnover is decrease than Rs 40 lakh and Rs 20 lakh for items and companies, respectively. This will come into impact from January 1, 2023.
Source: www.financialexpress.com”