E-commerce Sellers to get GST Relief as Council Approves Simplified Registration Scheme

Small businesses selling online may finally get some breathing space on tax compliance. The GST Council on Wednesday announced in-principle approval to a simplified registration scheme that removes one of the biggest irritants for small sellers on e-commerce platforms -- having to maintain separate state-level registrations to reach customers nationwide.

At present, an enterprise selling goods via e-commerce platforms such as Amazon, Flipkart or Meesho needs to have a valid Principal State of Business (PPOB) in every state it intends to sell its goods, as per the current GST framework. PPOB is the registered location where a business's core operations and administrative functions are carried out, serving as its central hub for GST registration and compliance in India.

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For small entrepreneurs or home-based sellers, this has been a costly and time-consuming exercise. The new framework, cleared in-principle by the Council, will allow a single registration to operate across states.

“The detailed modalities for operationalizing the said scheme will be placed before the GST Council. It will ease compliance for such suppliers and facilitate their participation in e-commerce across states,” the council said in a statement.

Importantly, this has been among the key asks by e-commerce sellers over the past few years. MSME stakeholders in the country have been urging for the adoption of a single home state PPOB model under GST that will help enhance operational flexibility for sellers, streamline MSMEs’ expansion through e-commerce, safeguard state GST revenue, and maintain transparent audit trails.

Meanwhile, the council also recommended a simplified GST registration scheme for small and low-risk businesses. According to recommendations of the 56th meeting of the GST Council, from November 1, 2025, businesses deemed “low risk” or those with output tax liability not exceeding Rs 2.5 lakh per month will get GST registration automatically within three working days from the date of submission of the application. However, the scheme will be voluntary.

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Importantly, the council, back in June 2022, had waived the mandatory registration for businesses supplying goods with a turnover up to Rs 40 lakh and services with a turnover up to Rs 20 lakh. However, it was not applicable for sellers making inter-state supplies.

The GST Council also recommended removing the threshold limit for refunds arising out of exports made with payment of tax to help small exporters make exports through courier, postal mode, etc.