Parliamentary Committee recommends GST registration exemption for small online retailers
New Delhi, June 22 (KNN) Parliamentary Standing Committee on Commerce has recommended that the exemption provided to offline sellers with regard to GST registration should be extended to online sellers as well with the same applicable threshold limit by the government.
It has noted that an unnecessary burden has been imposed on small sellers requiring to register for GST when doing business through e-commerce platforms.
The dropout rate of small sellers is about 60-70%, which the committee called concerning.
The committee has emphasised on “gatekeeper” e-commerce platforms for India that would require rigorous supervision.
It said that its time for reforms and to identify businesses that operate as gatekeeper platforms and establish a threshold for gatekeeper qualification.
In view of FDI Policy, the Committee recommends a stable FDI policy regime be ensured in the e-commerce sector to bring about certainty and boost the confidence of potential investors.
The report also advised that platforms be required to notify regulators suo motu once they surpass the prescribed gatekeeper threshold.
Furthermore, the committee reportedly has proposed tougher procedures to detect anti-competitive mergers and acquisitions in the e-commerce sector, which comes at a time when internet businesses are likely to go through a period of consolidation following a fundraising boom.
The committee stated in a report on the country’s e-commerce sector that asset and turnover-based thresholds may not completely capture the significance of a combination of transactions in the sector, allowing the Competition Commission of India to avoid investigation. (KNN Bureau)