GSTN Enables Unregistered Suppliers to Enroll for E-commerce Goods Supply

The Goods and Services Tax Network (GSTN) has introduced a new facility that allows unregistered suppliers to enroll for the supply of goods through e-commerce operators (ECOs). This development comes in response to recent amendments to the Central Goods and Services Tax (CGST) Act, exempting certain suppliers from mandatory GST registration when supplying goods through ECOs. Here’s an overview of the process and conditions that unregistered suppliers must meet to take advantage of this enrollment opportunity.

Introduction

In light of the amendments to the Act, rules, and notification number 34/2023 dated 31st July 2023, GST unregistered suppliers can now enroll for the supply of goods through e-commerce operators without the need for mandatory GST registration. However, certain conditions must be met for this exemption to apply:

1. Single-State/UT Supply: Suppliers should engage in the supply of goods solely through an ECO in one State/Union Territory (State/UT).
2. No Inter-State Supply: The supplier should not engage in any inter-state supply of goods.
3. Valid PAN: Suppliers must hold a Permanent Account Number (PAN) under the Income Tax Act, 1961.
4. PAN Declaration: Suppliers are required to declare their PAN, which will be validated, on the common portal (GST Portal). They must also provide their business address and specify the name of the State/UT where they operate before making such supplies.
5. Enrollment Number: Suppliers will be granted an enrollment number upon the successful validation of their PAN. They must obtain this enrollment number before conducting any supply through an ECO.

Enrollment Procedure

To facilitate this enrollment process, GSTN has introduced a user-friendly functionality that allows unregistered persons to sign up for e-commerce goods supply. Here’s how unregistered suppliers can enroll on the GST portal:

1. Visit the GST Portal: Go to https://www.gst.gov.in/ and click on the GST Portal link.
2. Access User Services: Select the “User Services” Tab and choose “Generate User Id for Unregistered Applicant.”
3. Confirmation: Click “Yes” on the warning window to proceed.
4. Application: Check the “To apply as a supplier to e-commerce operators” box.
5. Fill the Form: Complete the form that opens on your screen.
6. Enrollment Number: Once your PAN is successfully validated, the portal will generate your enrollment number.

This initiative from GSTN aims to simplify the process of enrolling unregistered suppliers and promote the ease of doing business, especially for those supplying goods through e-commerce operators within a single State/UT. If you meet the specified conditions, you can now enroll for this purpose and enjoy the benefits of this streamlined process.

Also Read: GSTN Simplifies Integration for E-commerce Operators & Unregistered Suppliers

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GSTN

Facility of enrolment for supply of goods through e-commerce operators by GST un-registered suppliers.

12/10/2023

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.

Thanking you,
Team GSTN