GST Relief Proposed for Small E-Commerce Sellers
· Business · Moneycontrol
The Central Board of Indirect Taxes and Customs (CBIC) is set to propose a single-state registration scheme aimed at easing compliance for small e-commerce sellers. The proposal, expected to be tabled with the Finance Ministry, would allow merchants selling on platforms like Amazon, Flipkart, and Shopify to register only in their state of origin rather than in every state where they deliver. The move follows complaints from small businesses that the current multi-state registration requirement under GST increases costs and administrative burden. The scheme could reduce the effective GST rate burden for sellers whose supplies fall below the normal taxable threshold and simplify refund mechanisms for exporters of services. The proposal is likely to be discussed with the Finance Ministry before submission to the GST Council, though no timeline for implementation has been announced.
Why it matters
Around 6.5 million small e-commerce sellers, many of whom are artisans and micro-enterprises, could benefit from reduced compliance costs and simpler tax paperwork if the scheme is approved by the GST Council. The Reliance-Sterling battle over Future Group's retail assets remains a critical test case for how the government balances foreign investment rules against domestic entrepreneurship. India's manufacturing sector saw its fastest growth since November 2022, driven by robust demand in Q4FY25
Read the original report — Moneycontrol
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