Commerce and trade minister Piyush Goyal stated on Thursday that the Goods and Services Tax (GST) Council’s newest resolution to exempt small companies which have adopted e-commerce from obligatory registration will doubtless be a “game-changer” for the Open Network for Digital Commerce (ONDC) being promoted by his ministry.
Speaking at an occasion, Goyal stated: “This is a major decision which will help the e-commerce ecosystem but more importantly, it will help small businesses benefit.” He added that the handicraft and handloom segments, together with many different small companies within the textiles sector, stand to profit from this transfer.
The Council on Wednesday waived GST registration for these companies with an annual turnover of as much as Rs 20 lakh and people which might be resorting to the inter-state provide of products and providers. It additionally prolonged the GST composition scheme to on-line sellers, as much as a turnover threshold of Rs 1.5 crore.
Currently, entities supplying via e-commerce operators are mandated to be registered even when their annual turnover is beneath the edge limits (Rs 40 lakh for items and `20 lakh for providers for many states). However, below extant norms, the brick-and-mortar shops with related turnovers are usually not required to register. So, the most recent transfer will carry parity between on-line and offline gamers.
Goyal stated one other resolution of the GST council to boost the GST on minimize and polished diamonds from 0.25% to 1.5% (efficient from July 18, 2022) is an effective transfer, because it resolves the problem of ITC accumulation being confronted by the sector on account of an inverted obligation construction.
Source: www.financialexpress.com”