ADIF, IndiaTech & Nasscom Demand Settle GST Compliance Issues

Industry associations IndiaTech.org, ADIF, and Nasscom have advised the government to reduce the GST compliance load on the small online sellers.

They mentioned that various micro, small and medium enterprises (MSMEs) have fear concerning the transition to the online marketplace because of cumbersome tax compliances beneath the GST law.

It opposes the MSMEs from approaching online marketplaces and reduces the visions of a digital Indian economy. Sellers would get restricted by the rules whose income at present is less than the GST limits.

Section 24(ix) of the CGST Act, 2017, mentioned that supplying the goods via an e-commerce operator is needed to enroll under GST whatever the turnover is.

Despite the turnover does not reach at breakeven the exemption in the GST comes beneath the GST ambit.

Indiatech.org mentioned to the state finance ministers, GST council secretariat, the Ministry of Micro, Small and Medium Enterprises and the finance ministry that “The MSME ministry, in the interest of MSMEs and small businesses, should recommend that the exemption limit for small businesses should apply irrespective of whether the sale happens in the state or outside,”

GST enrollment for the online sales is essential when the turnover is beneath Rs 40 lakh this is because the exemption does not apply to the interstate sale and is for the trade inside the state.

the Alliance of Digital India Federation (ADIF) asked the government to bridge the gap between the online and the offline businesses to permit the startups to run the businesses, particularly in the post-pandemic economy.

The council also specified the rise in the cost of the services provided online and losses of the digital rise owing to these laws moreover to the negative impact the same would on the startups and small businesses.

“ADIF said that The current GST norms create barriers for lakhs of traders from using e-commerce platforms to sell their products but even practically render ineligible, large numbers of small businesses of artisans, craftsmen, household and cottage industry who are conducting businesses from their home to supplement the income of the family,”

Nasscom mentioned that the hesitation of the small businesses to enroll beneath the GST law is not to save the taxes, it is to prevent the unmanageable and time taking enrollment and the returns filing procedure.

We urged the government to permit these sellers to claim the advantage of the composition scheme under GST, permit the seller to enroll warehouses of the e-commerce operators, and rely on one business place registration in the home state of the seller.