On this page

GST Council eases registration for small e-commerce sellers using operators' out-of-state warehouses

The 57th GST Council approved letting eligible sellers declare an operator's warehouse in another state as their principal place of business, with the operator's consent. Sellers must still keep a physical presence in their home state. The extra registration covers only e-commerce supplies.

Newer report , , Indian Express : GST Council eases ITC refunds from 1 November, capital goods from April 2027; 5% GST on unregistered riders' delivery

More on GST Council

  1. GST Council recommends flat 5% GST without credit on e-commerce delivery, plus e-way bill rationalisation, , The Hindu BusinessLine
  2. GST Council likely to lift prosecution threshold to ₹5 crore and ease e-commerce seller rules at October 8 meeting, , Business Today

What it means for online and offline

If you run a small seller business on marketplaces, you may now register using an e-commerce operator's out-of-state warehouse as your principal place of business, with the operator's consent, but you must still keep a physical presence in your home state.

Signals to track

  • Publication of the official notification or circular that implements the 57th GST Council decision
  • Marketplace announcements of seller consent or onboarding tools for the new route
  • GST portal changes to the registration form for declaring a warehouse as principal place of business
  • State government or state tax authority objections on place of supply and revenue attribution
  • Industry body statements on how many small sellers actually qualify under the home-state presence rule

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • The GST Council secretariat and the central tax authorities are likely to issue notifications, FAQs or circulars defining which small sellers are eligible and how the operator's consent is recorded.
  • Large e-commerce operators are likely to build consent and onboarding flows for sellers and to promote the option as a way to bring small sellers into their fulfilment networks.
  • Small sellers that now sell across states mainly through marketplaces may register through an operator's out-of-state warehouse, while keeping a physical presence in their home state.
  • State tax administrations may seek clarity on how revenue is attributed and on how they can verify a seller's home-state presence.
  • Competing channels such as social commerce and direct-to-consumer storefronts may press for similar registration relief, which would erode the operators' edge.

The source

Source Read the source at News18 Business & Auto

Published

First seen

By