CAIT urges Union FM to relax the mandatory GST registration for e-commerce
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The Confederation of All India Traders (CAIT) has urged the Union Finance Minister Smt. Nirmala Sitharaman to waive compulsory GST registration to sell products on e-commerce sites.

The representative stated that the Goods and Services Tax (GST) is being implemented in contrast to the objective of the “Digital India” government scheme. It further urged the Finance Minister to put things right along with the GST Council.

Under the GST law, a vendor who wishes to sell goods online is compulsorily required to obtain a GST registration. Any vendor without a GST Identification Number (GSTIN) is disallowed to sell goods on any e-commerce site. 

A co-statement was issued by the trade association’s National President B.C. Bhartia and Secretary General Praveen Khandelwal. Many traders from across the country are hesitant from using e-commerce sites to sell their goods due to this restrictive GST provision.

Several state governments and ministries are keen to bring more vendors onto the e-commerce platforms. However, the GST provision of disallowing vendors without having a GSTIN has become a primary roadblock to embracing e-commerce by several traders of India.

The association further pointed out the Centre is striving for the upliftment of small retailers. However, since these businesses have an annual turnover of less than Rs.40 lakh of the GST registration threshold, they should be exempt from GST registration for e-commerce sales.

As an alternative to the GST registration, bank details, Aadhaar numbers, or other similar measures may be prescribed as essential criteria to qualify for e-commerce sales, the representation by CAIT said. It further added that many artisans, cottage and household industries face challenges.

From the representation, one can understand that the e-commerce sellers are genuinely facing hurdles in expanding their business. The GST Council must consider this matter seriously in its upcoming meeting.

For any clarifications/feedback on the topic, please get in touch with the writer at annapoorna.m@cleartax.in

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