1. In terms of the recent amendments to the Act and the rules and notification number 34/2023 dated 31.07.2023, persons supplying goods through e-commerce operators shall be exempt from mandatory registration under the CGST Act even if they supply goods through e-commerce operators (ECO) if they satisfy the following conditions:
(a) such person is engaged in the supply of goods through the ECO and such supplies are made only in one State/UT,
(b) such person does not make any inter-state supply,
(c) the said person has a Permanent Account Number (PAN) under the Income Tax Act, 1961,
(d) such persons shall declare his PAN (which shall be validated) on the common portal (i.e. GST Portal) along with the address of his place of business and the name of the State/UT or Union territory before making such supplies,
(e) such person has been granted an enrolment number on the common portal upon validation of his PAN before which he shall not make any such supply through any ECO.
2. GSTN has developed the necessary functionality for enrolment of unregistered persons and the same is available on the portal. Accordingly, unregistered person desirous of enrolling on the GST portal for making supplies of goods through ECOs in any one State/UT are hereby advised to follow the path/procedure specified below:
•Visit the GST Portal at https://www.gst.gov.in/ and click the GST Portal link
•Select the “User Services” Tab and choose “Generate User Id for Unregistered Applicant”
•Click “Yes” on the Warning window which asks you to Continue
•Check the “To apply as a supplier to e commerce operators” box
•Proceed to fill the Form that opens on your screen
•Upon successful validation of your PAN the enrolment number will be generated by the portal.
To read full functionality CLICK ME.
Relevant extract of notification no. 34/2023 Dt. 31.07.2023 is as under:
In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making supplies of goods through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act and having an aggregate turnover in the preceding financial year and in the current financial year not exceeding the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory in accordance with the provisions of sub-section (1) of section 22 of the said Act, as the category of persons exempted from obtaining registration under the said Act, subject to the following conditions, namely:—
(i) such persons shall not make any inter-State supply of goods;
(ii) such persons shall not make supply of goods through electronic commerce operator in more than one State or Union territory;
(iii) such persons shall be required to have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961);
(iv) such persons shall, before making any supply of goods through electronic commerce operator, declare on the common portal their Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961), address of their place of business and the State or Union territory in which such persons seek to make such supply, which shall be subjected to validation on the common portal;
(v) such persons have been granted an enrolment number on the common portal on successful validation of the Permanent Account Number declared as per clause (iv);
(vi) such persons shall not be granted more than one enrolment number in a State or Union territory;
(vii) no supply of goods shall be made by such persons through electronic commerce operator unless such persons have been granted an enrolment numberon the common portal; and
(viii) where such persons are subsequently granted registration under section 25 of the said Act, the enrolment number shall cease to be valid from the effective date of registration.2. This notification shall come into force with effect from the 1st day of October, 2023.
