CAIT Trade Association requests GOI to waive mandatory GST registration for E-commerce Sellers
The Confederation of All India Traders (CAIT), which represents 8 crore traders across 40,000 trade organizations in India, urged Finance Minister Nirmala Sitharaman on Sunday to change Sections 24 and 52 of the Goods and Services Tax Act to make it easier for small enterprises to sell online. CAIT requested an exemption from GST registration for traders selling on e-commerce portals under Section 24 in a letter to the minister, despite the fact that the government requires registration for businesses with sales turnover of more than Rs.20 lakh in the case of services and more than Rs.40 lakh in the case of goods.
“The government is making every effort to empower small retailers in the country. However, because these small retailers have turnover less than Rs.40 lakhs and thus are not required to obtain GST registration, the GST Council’s threshold relief has become a nightmare for these retailers who wish to adopt digital commerce”, CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said in a joint statement.
CAIT has asked Nirmala Sitharaman to apply a 1% GST tax on e-commerce marketplaces or aggregators for all transactions conducted on their platforms. “By doing so, the government will be able to trace transactions and collect tax income through e-commerce portals,” the affiliated explained. In December 2020, the government ordered that firms with a turnover of more than Rs.50 lakh pay at least 1% of their GST levy in cash. The move was aimed to prevent the use of forged invoices to avoid paying GST.
Under Section 52 of the CGST Act, e-commerce aggregators are responsible for collecting 1% tax at the point of sale (TCS) on every transaction, and payments to e-commerce sellers are made after the 1% tax has been deducted. Section 24 of the legislation, on the other hand, requires e-commerce enterprises that are required to collect TCS to also obtain GST registration.
“The mandatory GST registration prevents not only lakhs of traders across the country from selling their products through e-commerce, but also a large number of small businesses, artisans, craftsmen, household and cottage industries, and women entrepreneurs who run businesses from their homes to supplement their family income,” Khandelwal said. He stated that for the purposes of authentication, the Aadhar number, bank account details, or other comparable measures may be specified as mandatory credentials for onboarding on e-commerce portals.
Source: Financial Express