GST Council limits rate changes to once a year
What's the story
The Goods and Services Tax (GST) Council will now consider tax rate changes only once a year, Finance Minister Nirmala Sitharaman announced on Thursday. The announcement came during the 57th GST Council meeting, which focused more on process reforms than rate changes. The decision means that matters related to rates will be taken up at a dedicated annual meeting. The shift is aimed at making the tax regime more predictable for businesses.
New mechanism
Simplified registration mechanism for small sellers on e-commerce platforms
The GST Council also approved a simplified registration mechanism for small sellers on e-commerce platforms.
Sitharaman said this move will allow small businesses to sell through e-commerce operators while establishing a place of business in each state.
As per the proposed system, an e-commerce operator's warehouse in another state can be declared as the seller's principal place of business with their consent.
Operational guidelines
Physical presence in at least one state
Under the new system, sellers will have a physical presence in at least one state, which will be their home state.
The registration will be limited to supplies made through e-commerce platforms.
This move is expected to simplify the process for small businesses looking to enter the e-commerce market while complying with GST regulations.