From Financialexpress · Anees Hussain · · 1m 40s
GST Council Simplifies Online Seller Rules
GST Council introduces automatic registration for small online sellers and clarifies platform tax rules.
In brief
GST Council introduces automatic registration for small online sellers and clarifies platform tax rules. The GST Council proposed automatic registration for small online sellers using e-commerce platforms' warehouses as principal places of business and a 5% GST rate for delivery services to simplify tax compliance…
New registration rules for sellers
The GST Council proposed automatic registration for small online sellers using e-commerce platforms' warehouses as their principal place of business in a state where they have no physical presence.
Simplified tax compliance for small sellers
Sellers must have a physical presence in at least one state and pass on input tax credit of not more than rs two point five lakh a month to their buyers.
Automatic refunds for cash ledger
The system will sanction refunds of excess balance in a taxpayer's electronic cash ledger without officer involvement.
Unified tax treatment for platforms
The Council proposed clarifying section 9(5) of the cgst act to make platforms liable for gst on services like app-based rides and local deliveries regardless of business model.
5% gst rate for delivery services
Delivery services supplied through e-commerce platforms by non-gst registered partners will be taxed at a 5% rate without input tax credit.
Intellectual property rights treatment
Any transfer of intellectual property rights, whether permanent or temporary, will be treated as a supply of services for tax purposes.
What happens next
The new rule will take effect once the rule is notified by the gst council, simplifying tax compliance for small online sellers and platforms.
What it means
The GST Council proposed automatic registration for small online sellers using e-commerce platforms' warehouses as principal places of business and a 5% GST rate for delivery services to simplify tax compliance.
