Electronic tax

Small online retailers may soon be exempt from indirect tax registration

In a move that could increase the reach of small businesses through e-commerce, small online sellers may soon be exempt from GST registration and discussions are ongoing between central and state governments about this. , according to a livemint report. Currently, all e-commerce retailers must register for GST, regardless of their turnover.

“Representations have come in from industry and commerce to bring parity between online and offline sellers on the issue of GST registration, saying the current standard prevents small businesses from reaching a larger customer base. wide. Discussions are ongoing between the central government and the state governments. The GST Council’s legal committee will review the matter before a decision is made,” according to the report, which cites a source.

From now on, all online sellers, regardless of turnover, are required to register for GST, while those working offline are only required to register for GST if they have a total annual sale of more than Rs 40 lakh. The proposal, if approved, will put online and offline sellers on a level playing field when it comes to GST registration.

Apart from that, the GST Council, which is due to meet next month, could consider a proposal to remove the 5% bracket by moving some mass consumer goods to 3% and others to 8%, according to reports. .

Council may also decide to trim the list of exempt items by moving some of the non-food items to a 3% band.

The government plans to reduce the number of GST tiles from currently four to three. The report indicates that a new 15% middle slab could be introduced in place of the 12% and 18% slabs. The 5% rate can be changed to a new rate that will be 6% or 7%, but the rate setting will be done so that no more than four tiles are created at any given time, according to reports. .

Currently, the GST system has four bands: 5%, 12%, 18% and 28%. There are 480 items below the 18% slab, where about 70% of GST collections come from. Apart from this, there is a list of exempt items such as unbranded and unpackaged food products which are not subject to the tax.

The Council would also have asked the opinion of the States to increase the rates on 143 points. Products on which GST rates could be increased include handbags, perfumes/deodorants, chocolates, chewing gum, leather clothing and clothing accessories, and nuts, among others.

India’s top excise tax body is also likely to consider levying a 28% goods and services tax on cryptocurrencies. The government’s view is to keep cryptocurrencies on par with lotteries, casinos, racetracks and betting, they said.

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