Small businesses using e-commerce platforms to sell their products will not be required for compulsory registration under GST with effect from 1st October 2023 subject to their fulling some specified conditions.
The normal threshold limit for mandatory registration under GST are as follows:
- For the States in Regular Category is Rs. 40,00,000 for goods and Rs. 20,00,000 for services
- For States in Special Category is Rs.20,00,000 for goods and Rs.10,00,000 for services. States in Special Category are :Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand.
A business entity will have to fulfil certain conditions for the exemption. The exemptions are as follows:
- The total turnover on an all-India basis must not be higher than the threshold level.
- The entity should not make any inter-State supply of goods.
Requirements For Registration:
- The entity should have a Permanent Account Number.
- Such entity shall, before making any supply of goods through electronic commerce operator, declare on the common portal their PAN, address of their place of business and the State or Union territory in which such persons seek to make such supply.
- Such an entity will be granted an enrolment number on the common portal on successful validation of the PAN. It shall not be granted more than one enrolment number in a State or Union territory.
- If the entity exceeds the threshold limit for registration, the enrolment number granted will cease to exist.
(This GST Notification is articulated by Sowmiya S, Audit Executive at R V K S And Associates)