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Mandatory GST number bars lakhs of traders & MSMEs from selling products on e-commerce platform, says CAIT

Updated: Mar 14, 2022 07:42:08am
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Mandatory GST number bars lakhs of traders & MSMEs from selling products on e-commerce platform, says CAIT

New Delhi, Mar 14 (KNN) The Confederation of All India Traders ( CAIT) has raised an issue that the mandatory requirement of GST number for sellers on e-commerce platform blocks lakhs of traders and MSMEs across the country from using various online platforms to sell their products.

Large number of small businesses of artisans, craftsmen, household and cottage industry, women entrepreneurs who are conducting businesses from their home, get prohibited as well, said CAIT.

It has urged Union Finance Minister Nirmala Sitharaman to exempt mandatory condition of obtaining GST registration for e-commerce supplies in section 24 and under section 52.

CAIT also pointed out the contradictions between GST and vision of “Digital India” and requested FM Sitharaman to discuss the matter in the next GST Council meeting.

It also suggested that collection of one percent GST tax rate may be levied on e-commerce marketplace or aggregator for all the transactions that takes place on their respective platform through which the Government will be able to track the transactions and amass tax revenue from e-commerce portals.

National President B C Bhartia and Secretary General Praveen Khandelwal, CAIT said, “Several ministries and state governments are eager to bring more and more sellers one commerce platform but the provision of not allowing sellers without having GST number has become a major deterrent and roadblock to embrace digital commerce by lakhs of traders and MSMEs of the country.”

They said that the condition of GST number while onboarding on any e-commerce portal should be removed.

“While for the purpose of authentication, Aadhar number, Bank Account details or similar other measures may be designated as essential qualification for onboarding on e-commerce portals,” said Bhartia & Khandelwal. (KNN Bureau)

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