7 suggestions by e-commerce sellers to solve GST complexities

7 suggestions by e-commerce sellers to solve GST complexities

Dec 19, 2023

Abhishek Yadav

In a round table organised by the MSME body FISME, MSMEs selling via e-commerce have suggested measures to simplify GST-related challenges:

First, adopting a single home state PPOB model in GST regulations in order to enhance operational flexibility for sellers, streamline MSMEs' expansion through e-commerce, safeguard state GST revenue, and maintain transparent audit trails

Currently, MSMEs selling via e-commerce have to secure PPOB registrations in every state of operation which necessitates the need for physical offices, incurring working capital block and personnel costs

 Second, MSMEs also asked for permitting digital B2C transaction invoices for cost reduction and contributing to minimizing carbon footprint

Third, reducing the TCS rate to 0.1% cumulatively to resolve the working capital issue for sellers and help maintain continued visibility

Currently, the mandatory physical invoice in the digital age and the 1 per cent TCS (Tax Collected at Source) monitoring mechanism lead to working capital inefficiencies for e-commerce sellers

Fourth, MSME also suggested an API-based APOB registration system by e-commerce operators for each seller's GSTIN at warehouses to help reduce time required for inventory placement and eliminate repeated verification for the same premises

Fifth, ensure automation of the cash balance refund within T+3/5 days of filing of the application.

Sixth, issue circular explaining the business model of the e-commerce seller.

Seventh, provide comprehensive training to tax officers, equipping them with a nuanced understanding of the new-age e-commerce business model.

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