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GST Council: Small E-comm Sellers Could Sell Nationwide
5 Oct
Summary
- Small online sellers may soon register nationwide with one address.
- Platforms may be designated as business locations for sellers.
- Tax liability for services booked via platforms will be clarified.
A significant proposal before the Goods and Services Tax Council aims to allow small e-commerce sellers to conduct business nationwide using a single registered address. This change, if approved, would alleviate the current requirement for sellers to register in every state where they operate, potentially allowing them to use e-commerce platform warehouses as their registered business location.
The council will also tackle the long-standing issue of tax liability for services booked via online platforms. Current interpretations vary, especially for services like cab-booking. The proposed definition seeks to clarify that tax responsibility lies with the service itself, not the platform's contractual arrangements.
Furthermore, the delivery of goods ordered on e-commerce platforms is set to attract a fixed 5% levy without input tax credit. This measure ensures consistent tax application regardless of the delivery route. Ecommerce platforms will also face new reporting requirements, needing to submit monthly collection statements even if no tax was collected.
