GST registration facility for small e-commerce sellers to go live from November 1

New Delhi, Oct 23 : The simplified Goods and Services Tax (GST) registration facility for small e-commerce sellers will be enabled from November 1, a senior Finance Ministry official said on Friday.

The facility, recommended at the 57th GST Council meeting earlier this month, will allow eligible small sellers to register in other states by declaring the warehouse of an e-commerce platform as their principal place of business, without having to establish their own office or shop there.

Speaking on the sidelines of an event, the official said the system changes required to introduce the new registration mechanism were ready and the facility would be available on the GST portal from the beginning of next month.

The Council had proposed an optional simplified registration mechanism under the new Rule 14B of the Central Goods and Services Tax (CGST) Rules, 2017. It is applicable to small sellers of goods who supply exclusively through electronic commerce operators (ECOs).

To qualify, sellers must pass on input tax credit (ITC) of not more than Rs 2.5 lakh a month. They must also have a physical presence and GST registration in at least one state, which will continue to serve as their home state.

Registration under the scheme can be used only for supplies made through e-commerce platforms. The consent of the concerned e-commerce operator will be obtained through the system.

The official said detailed circulars explaining the registration process, along with the necessary notifications, would be issued in the coming days. Notifications and circulars covering certain refund-related changes approved by the GST Council are also expected shortly.

The official emphasised the need to monitor the adoption of the new regime and assess how it helps small sellers expand their business presence. The government should evaluate and publish the benefits of the facility over time, the official added.

Separately, another senior official said the restriction under Section 16(2)(c) of the CGST Act, which links a buyer's eligibility for input tax credit to the actual payment of tax by the supplier to the government, would undergo a detailed examination by a committee of officers.

The committee is expected to submit its report within three months, after which the findings will be placed before the GST Council for a final decision.

The 57th GST Council had referred the matter to the committee following requests from several states for a wider examination of the issue.

At present, genuine buyers may face denial or reversal of ITC even if they possess a valid invoice, have received the goods or services and have paid the supplier, when the supplier fails to deposit the applicable tax with the government.

The official indicated that any decision based on the committee's recommendations was targeted for implementation from April 1, 2027.