Relief for Small E-Commerce Businesses: GST Registration Exemption

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Highlights of Recent Notification 34/2023 – Central Tax:

Exemption to Small businesses selling goods through E-commerce Operators

Businesses selling their goods through E-Commerce Operators (ECO) were compulsorily required to obtain GST registration till 30th September 2023. This was regardless of whether GST registration was required based on their threshold limit of turnover. Because of this rule, even small businesses that wanted to sell their products through ECO were compulsorily required to get registered and go through the complex process of filing monthly or quarterly.
returns of GSTR-1 and GSTR-3B.
To simplify the process for small businesses using e-commerce platforms to sell their products online, CBIC, vide Notification No. 34/2023, has exempted such businesses from compulsory registration. This notification came on 31st July 2023 and is effective from 1st October 2023.

Conditions for small businesses claiming benefits:

1. Such persons shall not make any interstate supply of goods.
2. Such persons shall not make supply of goods through ECO in more than one state or Union
3. Such persons are compulsorily required to hold a PAN.
4. Before making any supply of goods through ECO, they would need to declare the following on the GST portal: their PAN, the address of their place of business, and their enrollment number.
5. Every person can obtain only one enrollment number in a state. No one is allowed to start selling goods through ECO until they get the enrollment number.
6. If the person applies and gets regular registration under GST, the enrolment number shall cease to be valid from the effective date of registration.


– These provisions are applicable from 1st October 2023.
– The provisions are only applicable for the sale of goods through ECO and not for the sale of services.
– Small businesses are those, whose aggregate turnover in the preceding financial year and in the current financial year are not exceeding the limit above which the supplier is required to take registration in the respective State or Union territory. (20 lakhs/40 lakhs as the case may be)
It’s hard for small businesses, as it is, to survive in the current scenario of ever-changing dynamic markets. The key is to adapt to this and show their visibility beyond their local surroundings. The implications of this amendment are a boon to these small businesses.
granting them the means to nurture and expand their ventures by harnessing the full potential of an online presence. Additionally, it comes as a welcome relief, lifting the weight of meticulous monthly and quarterly compliance procedures from their shoulders, thereby liberating them to focus on strategic growth and innovation.

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CA Abhishek D Mundhra Chartered Accountant
Abhishek D Mundhra is a Chartered Accountant with 12+ years of post-qualification experience with expertise in the field of GST and other Direct and Indirect Taxes.

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