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Commerce and trade minister Piyush Goyal stated on Thursday that the Items and Providers Tax (GST) Council’s newest resolution to exempt small companies which have adopted e-commerce from obligatory registration will probably be a “game-changer” for the Open Community for Digital Commerce (ONDC) being promoted by his ministry.
Talking at an occasion, Goyal stated: “It is a main resolution which can assist the e-commerce ecosystem however extra importantly, it is going to assist small companies profit.” He added that the handicraft and handloom segments, together with many different small companies within the textiles sector, stand to learn from this transfer.
The Council on Wednesday waived GST registration for these companies with an annual turnover of as much as Rs 20 lakh and people which are resorting to the inter-state provide of products and companies. It additionally prolonged the GST composition scheme to on-line sellers, as much as a turnover threshold of Rs 1.5 crore.
Presently, entities supplying via e-commerce operators are mandated to be registered even when their annual turnover is beneath the edge limits (Rs 40 lakh for items and `20 lakh for companies for many states). Nevertheless, beneath extant norms, the brick-and-mortar shops with comparable turnovers usually are not required to register. So, the newest transfer will convey parity between on-line and offline gamers.
Goyal stated one other resolution of the GST council to lift the GST on lower and polished diamonds from 0.25% to 1.5% (efficient from July 18, 2022) is an efficient transfer, because it resolves the difficulty of ITC accumulation being confronted by the sector on account of an inverted obligation construction.
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