Indian Economy News

GST rule change for small businesses a game-changer for ONDC: Shri Piyush Goyal

On June 30, 2022, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal stated that the decision by the Goods and Services Tax (GST) Council to remove required registration for small firms selling through e-commerce might be a game-changer for the development of the Open Network for Digital Commerce (ONDC).

To achieve fairness between online and offline suppliers, the GST Council exempted GST registration on Wednesday for firms with an annual turnover of up to Rs. 20 lakh (US$ 25,284) and who do not make any inter-state taxable supply. It also expanded the GST composition plan to online retailers with a turnover of Rs. 1.5 crore (US$ 189,632). The new legislation will take effect on January 1, 2023. Another significant benefit, according to him, is for small shops who are eager to join in online. Given that the government of India is already actively working on the ONDC, which would allow different platforms to communicate to each other and engage with each other, giving consumers more choice in acquiring products and services, he added.

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