GST Rules Eased For Small Online Sellers, 9.5 Lakh Businesses Likely To Benefit
From November 1, eligible small e-commerce sellers can use an online platform's warehouse as their principal business address for GST registration in states where they lack a physical presence. CBIC's revised rules require a verified home-state registration and platform consent within seven working days. The change could benefit around 9.5 lakh sellers.
GST Rules Eased For Small Online Sellers, 9.5 Lakh Businesses Likely To Benefit | Representational Image
New Delhi, Oct 28: Small sellers on e-commerce platforms will be able to declare the platform's warehouse as their Principal Place of Business (PPoB) for supplying products in multiple states from November 1.
The Central Board of Indirect Taxes and Customs (CBIC) has notified changes in Central GST rules, allowing small sellers, who do not pass on input tax credit of more than Rs 2.5 lakh per month, to obtain registration in any other state or Union Territory where the person has no physical presence, by declaring a warehouse of an electronic commerce operator in that state or UT as principal place of business.
Simplified GST Registration For Small Sellers
A seller would need to have a physical presence in one home state, where physical verification and Aadhaar authentication would be completed, while registrations in other states could be obtained with the consent of the e-commerce platform without further involvement of a tax officer.
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The changes in CGST rules were approved by the GST Council in its October 8 meeting, and will be effective November 1, 2026.
The move could enable around 9.5 lakh small sellers to access the national market without having to establish physical offices in every state where their goods are stored, while creating greater tax parity across competing e-commerce business models.
Application Process And Platform Consent
Such small sellers would have to apply in Form GST REG-01 and declare the Goods and Services Tax Identification Number (GSTIN) obtained on their Permanent Account Number (PAN) in the home state where the seller has physical presence.
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The application would be forwarded to the concerned e-commerce operator for their consent to be given within 7 working days. If the consent is not given within the period, the application would not be processed further.
"Where the electronic commerce operator withdraws the consent given to the registered person, the electronic commerce operator shall intimate the withdrawal on the common portal," the CBIC notification said.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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