CBIC Waives The Requirement Of Mandatory GST Registration For Person Supplying Goods Through ECOs
The Central Board of Indirect Taxes and Customs (CBIC) has waived the requirement of mandatory registration under section 24(ix) of CGST Act for persons supplying goods through electronic commerce operator (ECOs), subject to certain conditions with effect from 1 October, 2023.The has notified that persons making supplies of goods through an electronic commerce operator who is required to...
The Central Board of Indirect Taxes and Customs (CBIC) has waived the requirement of mandatory registration under section 24(ix) of CGST Act for persons supplying goods through electronic commerce operator (ECOs), subject to certain conditions with effect from 1 October, 2023.
The has notified that persons making supplies of goods through an electronic commerce operator who is required to collect tax at source and having an aggregate turnover in the preceding financial year and in the current financial year not exceeding the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory are exempted from obtaining GST registration.
In order the avail the exemption from GST registration various conditions need to be fulfilled.
Firstly, the person shall not make any inter-State supply of goods.
Secondly, persons shall not make supply of goods through electronic commerce operator in more than one State or Union territory.
Thirdly, persons shall be required to have a Permanent Account Number issued under the Income Tax Act, 1961.
Fourthly, persons shall, before making any supply of goods through electronic commerce operator, declare on the common portal their Permanent Account Number issued under the Income Tax Act, 1961, address of their place of business and the State or Union territory in which such persons seek to make such supply. The declaration shall be subjected to validation on the common portal. Persons have been granted an enrolment number on the common portal on successful validation of the Permanent Account Number declared. Persons shall not be granted more than one enrolment number in a State or Union territory.
Lastly, where persons are subsequently granted registration under section 25, the enrolment number shall cease to be valid from the effective date of registration.
Notification No. 34/2023- Central Tax
Date: 31/07/2023