# GST Council Simplifies Online Seller Rules

> GST Council introduces automatic registration for small online sellers and clarifies platform tax rules.
- Title: GST Council Simplifies Online Seller Rules · Financialexpress
- Summary: GST Council introduces automatic registration for small online sellers and clarifies platform tax rules. The GST Council proposed automatic registration for…
- Keywords: gst council, small online sellers, e-commerce platforms, tax registration, platform tax, delivery services, gst rate, business, money, news, GST, Council
- Source: Financialexpress — https://financialexpress.com/business/news-gst-council-moves-to-ease-rules-for-small-online-sellers-clarify-platform-tax-4356962
- Author: Anees Hussain
- Published: 2026-10-08T17:56:42+00:00
- Read time: 1 min
- Topics: gst council, small online sellers, e-commerce platforms, tax registration, platform tax, delivery services, gst rate, business, money, news
## 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.
## Key takeaway

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.