Topics In Demand
Notification
New

No notification found.

Report: Suggestions on GST for creating a conducive environment for small online sellers
Report: Suggestions on GST for creating a conducive environment for small online sellers

March 14, 2022

496

0

The Indian e-commerce sector is a powerful ally to the government and plays a key role in the overall growth of the Indian economy, contributing ~US$800 billion to India’s GDP in FY 2019-20 and employing more than 35 million people.  COVID-19 also highlighted the agility and resilience of the Indian retail sector as a large number of consumers were forced to shop on online platforms. This has led online retailers to go beyond Tier-I cities and penetrate deeper into Tier-II and Tier-III cities.

Over the past few years, India has seen a surge in small enterprises and homemakers scaling their businesses. While it is true that in the future these small retail players will continue to be the backbone of the Indian retail industry, the new way forward for them would be to transform from offline mode to an “Offline + Online” mode of business.

However, majority of MSMEs hesitate to transition to online marketplaces, owing to cumbersome tax compliances under the Goods and Services Tax (GST) law. The hesitation of small businesses to register under the GST law is not to evade taxes but to avoid cumbersome and time-consuming registration and returns filing processes. This discourages MSMEs from exploring online marketplaces and slows India’s vision of a digitally powered economy.

 

In this regard, NASSCOM along with Knowledge Partners Deloitte India, has prepared this report to set the overall context of e-commerce in India, tracing its evolution and highlighting some of the key inhibitions amongst small retailers in transitioning from a purely offline to “Offline + Online” models.  

We have submitted the Report on March 14, 2022 to officials at the Centre and the State level. As part of the report, we have requested the government to bring in parity between online and offline sellers by doing away with the mandatory registration requirement under GST for small sellers that sell online and with a turnover of less than INR 40 lakh and allow such sellers to avail the benefit of composition scheme, allow sellers to register warehouses of e-commerce operators across states, based on a single physical place of business registration in the home state of the seller, strengthen reporting-led safeguards in the periodical compliances undertaken by e-commerce operators to enhance the compliance rating of the ecosystem, amongst others. Action in this direction will encourage small sellers to transform themselves into the organised sector and promote entrepreneurship

The Report is attached for your reference.

In case you have any feedback, please write to tejasvi@nasscom.in


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


Download Attachment

20220314_NASSCOM_Report_Ecommerce_MSMEs..pdf

Tejasvi

© Copyright nasscom. All Rights Reserved.