In India, there are an estimated 70 million small business vendors in India. This number includes micro, small, and medium-sized enterprises (MSMEs). MSMEs are the backbone of the Indian economy, accounting for over 90% of all businesses in the country. They also employ over 80% of the workforce. Earlier if these above vendors wanted to expend their business by supplying through e-commerce operators (sell online without gst). Then small vendors were required to register for GST, even if their annual turnover was below the threshold limit. This was a major obstacle for small businesses, as it added to the cost and complexity of doing business online.
The GST department has come up with the good news.
GST Council gives the green light to sell online without GST registration:
The GST department issued a notification on August 4, 2023, that allows small businesses to sell their goods and services through online platforms without having to register for GST.
Under notification, department notified the ECO can allow unregistered vendors to make sales through online platforms subject to few conditions.
Conditions notified by GST department in relation to selling online without GST registration:
The GST department has notified the following conditions for unregistered suppliers and e-commerce operators (ECOs):
- Unregistered suppliers must obtain an enrolment number on the GST common portal.
- The ECO (electronic commerce operator) shall allow the supply of goods through it by the unregistered person only if enrolment number has been allotted on the common portal.
- The ECO must not allow unregistered suppliers to make inter-state supplies. (Means sales within the state is permitted).
- The ECO shall not collect tax at source under sub-section (1) of section 52.
- ECOs must furnish details of supplies made by unregistered suppliers through their platform in Form GSTR-8
Form which date, unregistered supplier can make supplies through ECO?
Unregistered suppliers can start making supplies through ECOs from October 1, 2023.
Confederation of All India Traders (CAIT) view on this notification:
The Confederation of All India Traders (CAIT) expressed its gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their “progressive decision” to allow small unregistered vendors to sell their goods through e-commerce portals. CAIT has been demanding this decision for more than two years, and it is now pleased that the GST Council has finally approved it.
CAIT said that this decision is a “progressive step” that will help small businesses to grow and compete with larger businesses. It also said that the decision is in line with the government’s commitment to “ease of doing business” in India.
CAIT has been demanding this decision for more than two years. In 2021, CAIT submitted a memorandum to the GST Council requesting that it allow small unregistered vendors to sell their goods through e-commerce portals. CAIT argued that this would help small businesses to reach a wider audience and grow their businesses.
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11 December 2023 
