Introduction

The Goods and Services Tax Network (GSTN) has provided a facility for enrollment of unregistered suppliers to facilitate the supply of goods through e-commerce operators (ECOs). This facility is available to unregistered suppliers who meet the following conditions:

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  • They are supplying goods through ECOs in any one State/UT.
  • Their aggregate turnover from the supply of goods through ECOs does not exceed INR 40 lakhs in the current financial year.

Benefits of Enrolling for Unregistered Suppliers

There are several benefits of enrolling for unregistered suppliers under this facility:

  • They can avoid the mandatory requirement of GST registration if their aggregate turnover from the supply of goods through ECOs does not exceed INR 40 lakhs in the current financial year.
  • They can access the GST portal to generate invoices for their supplies through ECOs.
  • They can view and track their invoices, and make payments of any taxes due.

How to Enroll

To enroll on the GST portal for making supplies of goods through ECOs, unregistered suppliers can follow these steps:

  1. Visit the GST Portal at https://www.gst.gov.in/ and click the “GST Portal” link.
  2. Select the “User Services” Tab and choose “Generate User Id for Unregistered Applicant”.
  3. Click “Yes” on the Warning window which asks you to Continue.
  4. Check the “To apply as a supplier to e commerce operators” box.
  5. Proceed to fill the Form that opens on your screen.
  6. Upon successful validation of your PAN the enrolment number will be generated by the portal.

Responsibilities of E-Commerce Operators

ECOs will also need to be enrolled on the GST portal and integrate with GSTN to obtain the details of unregistered suppliers and facilitate the collection and deposition of GST.

Conclusion

The introduction of this facility by GSTN is a welcome step, as it will make it easier for unregistered suppliers to sell their products through ECOs without having to register for GST. This is expected to boost e-commerce in India and provide more opportunities for small businesses.

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