Empowering Small Suppliers: New GST Exemption Guidelines
Threshold Exemption:
Small suppliers rejoice as the Central Government, acting on the Council's recommendations, exempts those making supplies through e-commerce operators from GST registration if their aggregate turnover remains below the specified threshold.
Restrictions on Inter-State Trade:
Exempted suppliers are restricted from engaging in inter-state supply of goods, focusing on localized trade.
Single-State Operation:
Suppliers are limited to conducting business through e-commerce operators in only one State or Union Territory.
Income Tax Compliance:
A mandatory requirement for suppliers is possessing a valid Permanent Account Number (PAN) under the Income Tax Act, 1961.
Pre-Declaration Obligation:
Before initiating any supply via e-commerce, suppliers must declare their PAN, business address, and the intended state of supply on the common portal, subject to validation.
Transition to GST Registration:
If these exempted suppliers later opt for GST registration under section 25, the enrolment number becomes void from the effective date of registration.
Effective Date:
The new guidelines come into effect from October 1, 2023, signaling a paradigm shift in GST compliance for small-scale suppliers.