Tuesday, September 27, 2022

GST: Small online retailers may soon get exemption from indirect tax registration

According to a Livemint report, in a move that will boost the reach of small enterprises through e-commerce, small online sellers may soon be exempted from GST registration and discussions are on between the central and state governments. has been Currently, all e-commerce retailers, irrespective of their turnover, have to register for GST.

“Representations have come from industry and trade to bring parity between online and offline sellers on the issue of GST registration, adding that the existing norm comes in the way of small businesses reaching out to a large customer base. Talks are going on between the central and state governments. The law committee of the GST Council will examine the matter before taking a decision,” said a source as per the report.

As of now, all online sellers, irrespective of their turnover, are required to mandatorily register for GST, while those working offline are required to register for GST if their total annual sales exceed Rs 40 lakh. . The proposal, if approved, would bring online and offline sellers on par as far as GST registration is concerned.

In addition, the GST Council, which is likely to meet next month, may consider a proposal to do away with the five per cent slab by shifting some items of mass consumption to three per cent and the rest to eight per cent categories. to report.

The council may also decide to cut the list of exempted items by shifting certain non-food items to the 3 per cent slab.

The government plans to reduce the number of GST slabs to three from the current four. The report said that in place of 12 per cent and 18 per cent slabs, a new mean slab of 15 per cent may be introduced. The rate of 5 per cent may be replaced by a new rate which will be 6 per cent or 7 per cent, but the rate change will be done in such a way that not more than four slabs are created at any point of time, according to reports.

Currently, there are four slabs in the GST system – 5 per cent, 12 per cent, 18 per cent and 28 per cent. There are 480 items in the 18 per cent slab, of which about 70 per cent of the GST collection comes. In addition, there is an exemption list of items like unbranded and unpacked food items that do not attract levies.

It was also informed that the Council had sought the views of the States for increasing the rates on 143 items. The products on which GST rates can be increased include handbags, perfumes/deodorants, chocolates, chewing gum, leather apparel and clothing items and walnuts.

The apex decision making body on indirect taxes in India may also consider imposing a 28 per cent Goods and Services Tax on cryptocurrencies. He said the idea of ​​the government is to keep cryptocurrencies at par with lotteries, casinos, racecourses and betting.

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Nation World News Desk
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