Exempt small suppliers making inter-state supplies on e-commerce platforms from GST registration: GTRI

Think tank Global Trade Research Initiative (GTRI) said small suppliers on e-commerce platforms should be permitted to undertake inter-state supplies without GST registration if their turnover does not exceed the threshold. The GST Council has exempted small businesses making intra-state supplies through e-commerce platforms from taking GST registration if their turnover is below Rs 40 lakh in case of goods and Rs 20 lakh in case of services. The rule will kick in from October 1.

Ahead of the 50th GST Council meeting on Tuesday, GTRI has recommended that similar registration rules should be applicable for inter-state supplies done by micro and small businesses through e-commerce platforms.

Giving example, GTRI Co-Founder Ajay Srivastava said that a small village artisan with less than Rs 10,000 annual turnover selling metal-ware craft through her website must enrol for GST pay tax and file regular returns despite low turnover. However, if the artisan restricts business within a particular state, she/he does not need to pay GST.

“India is poised for big jump in e-Commerce exports in next few years. Enabling easier interstate sales will be the first step in that direction… The GST provision should be the same for within and across states’ supplies,” Srivastava said.

GTRI has also suggested doing away with the requirement of state-wise Goods and Services Tax (GST) registrations. Today, if a firm has a presence in 10 states, it must obtain 10 GSTINs and maintain a separate account for each.

“Since all supplies are captured online by GSTN, the GSTN can extract precise state-wise records from the PIN Code of the place of supply without seeking information from the firms,” Srivastava said.

GTRI also recommended allowing inter-state use of State GST (SGST) credit. Currently, if a firm has a surplus SGST credit in one state, it cannot be used to pay SGST in another state or to pay Central GST (CGST) dues.

“Restricting utilisation results in capital blockage… Allowing interstate use of SGST credit will not dilute the tax due to a state,” Srivastava said.

These changes would provide greater flexibility and efficiency for businesses operating in multiple states, encouraging inter-state trade and investment and promoting economic growth, he added.

Source from: https://economictimes.indiatimes.com/news/economy/policy/exempt-small-suppliers-making-inter-state-supplies-on-e-commerce-platforms-from-gst-registration-gtri/articleshow/101642836.cms?from=mdr

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Concept of Claim – Reversal – Reclaim
Clarification on Non Filing of GSTR-1 and GSTR 3B
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Special Provision for Banking, Financial Institutions, NBFC’s
Blocking of ITC (Rule 86A)
Restrictions on use of amount available in electronic credit ledger (Rule 86B)
Order of utilization of input tax credit (Rule 88A)
Manner of calculating interest on delayed payment of tax (Rule 88B)
Availability of credit in special circumstances
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- ITC on opening stock of inputs and capital goods available on opting out of composition scheme
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Taking ITC in respect of inputs and capital goods sent for job-work
Manner of distribution of credit by Input Service Distributor
Manner of recovery of credit distributed in excess
Apportionment of Credit
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Blockage of Credit in respect of
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- Tax paid under composition scheme
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- Goods or services used for CSR activities
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ITC on Works Contract and Construction of Immovable Property related issues such as:
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Credit on free gifts, samples, goods lost, stolen or destroyed etc.
ITC & Tax paid under Section 74, 129 and 130
Discussion on various important judgments on ITC
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- Claiming Time Barred ITC for the period of Cancellation
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- Constitutional validity of Section 16(2)(c) challenged in various cases
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Various Penalty & Imprisonment provisions
Legal Jurisprudence on Search and Seizure
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Inspection of goods in movement and penalty proceedings u/s 129 & 130 with recent changes in Union Budget 2021
Legal Jurisprudence of Coercive actions by the Dept during Search & Seizure and collection of tax revenue
The constitutional validity of arrest provisions before adjudication
Legal Jurisprudence of Arrest Provisions
Legal validity of Recovery Proceedings in GST
Provisional attachment of Property or Bank Account – When Why and Recourse available
Power to summon persons to give evidence and produce documents
Access to business premises
Officers to assist proper officers
Validity of Multiple or Parallel Proceedings
Various Assessments under GST viz. Self-Assessment, Provisional Assessment, Summary Assessment
Scrutiny of Returns, Assessment of Non-Filers of Returns
Audit by GST Department and Special Audit under GST Laws
Preparation and Handling of GST Audit
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Certain Offenses and Penalties