The Government of Delhi issued notification No. 34/2023-State Tax, F. 3 (14)/Fin. (Exp-I)/2023-24/DS-I/916 on 25.10.2023, providing Goods and Services Tax (GST) registration exemption for vendors who operate through e-commerce platforms for intrastate supplies.
The Lieutenant Governor of the National Capital Territory of Delhi, under Section 23(2) of the Delhi Goods and Services Tax Act, 2017 (DGST), has identified a specific group of individuals based on the council’s recommendations. These individuals are engaged in the supply of goods through an electronic commerce operator and are required to collect tax at the source under Section 52 of the DGST Act, 2017.
Under this notification, these individuals are exempted from the obligation to get registration under the DGST Act, provided that their total turnover in the previous financial year and the current financial year does not exceed the limit stipulated in Section 22(1) of the said Act, beyond which registration is mandatory for suppliers in the respective State or Union territory.
There are certain conditions that should be followed to get this exemption:
- The individuals shall not engage in inter-State supply of goods.
- The individuals shall not, through an electronic commerce operator, conduct goods supply in more than one State or Union territory.
- The individuals must possess a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961).
- Before making any supply of goods through an electronic commerce operator, the individuals are required to provide their Permanent Account Number, the address of their place of business, and the State or Union territory in which they intend to conduct the supply of goods. The validation process of these declarations will be done on the common portal.
- After the successful validation of the given PAN, an enrolment number shall be issued to the individual through the common portal.
- The individual shall not be provided more than one enrolment number in a State or Union territory.
- Individuals shall make no supply of goods through an electronic commerce operator unless an enrolment number has been granted to them through the common portal.
- If individuals are then granted registration under Section 25 of the DGST Act, from the date of registration, the enrolment number will not considered to be valid.
This notification will be effective from 1st October 2023.
