Trade organization CAIT urges FM Nirmala Sitharaman to waive mandatory GST registration for e-commerce merchants

Ease of Business for SMBs: CAIT has also requested Nirmala Sitharaman to charge the one percent VAT on e-commerce marketplaces or aggregators for all transactions on their respective platforms.

Easy business for MSMEs: Traders’ body Confederation of All India Traders (CAIT), which represents 8 crore traders from 40,000 trade associations across India, urged Finance Minister Nirmala Sitharaman on Sunday to approve Section 24 and Section 52 of the Goods and Services Tax Act. change to sell online for small businesses. In a letter to the Minister, CAIT has requested an exemption for merchants from GST registration for sales on e-commerce portals under Article 24, even though the government has made registration mandatory for businesses with turnover above Rs 20 lakh in in the case of the supply of services and more than Rs 40 lakh in the case of the supply of goods.

“The government is making every effort to empower small retailers in the country, but as these small retailers have a turnover of less than Rs 40 lakhs and thus are not required to obtain GST registration, the threshold relief by the GST has been reduced. council has become a nightmare for these retailers looking to adopt digital commerce,” CAIT National President BC Bhartia and Secretary General Praveen Khandelwal said in a joint statement.

CAIT also requested Nirmala Sitharaman to impose the one percent GST tax on e-commerce marketplaces or aggregators for all transactions on their respective platforms. “In this way, the government can track the transactions and also generate tax revenue from e-commerce portals,” the accompanying added. In December 2020, the government had required companies with a turnover of more than Rs 50 lakh to pay at least 1 percent of their VAT liability in cash. The move was intended to control the use of false invoices to evade GST.

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E-commerce collectors are responsible for the tax collected at source (TCS) at 1 percent on any transaction under Section 52 of the CGST Act and payment to e-commerce merchants is made after deduction of 1 percent tax. On the other hand, according to Article 24 of the law, the e-commerce companies, which are required to collect TCS, are also required to get GST registration.

“The mandatory GST registration not only prohibits many merchants across the country from using e-commerce to sell their products, but even prohibits large numbers of small businesses, artisans, craftsmen, household and cottage industries, women entrepreneurs doing business from them to supplement their family income,” said Khandelwal. He noted that for the purpose of authentication, the Aadhar number, bank account details or similar measures can be regarded as essential qualifications for onboarding on e-commerce portals.

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