The proposed scheme is optional and is aimed at small suppliers who have little or no physical presence across States/UTs but sell their goods through e-commerce operators | Photo Credit: aqabiz

The GST Council, at its October 7 meeting, is likely to consider a proposal to allow small businesses selling goods exclusively through e-commerce platforms to operate with a single GST registration. The proposed scheme is optional and is aimed at small suppliers who have little or no physical presence across States/UTs but sell their goods through e-commerce operators (ECOs) that collect tax at source.

The supplier will, however, need to have a physical presence in at least one State or UT, which will be treated as the principal place of business (PpoB).

The proposal is intended to make it easier for small sellers to use e-commerce platforms without having to navigate multiple GST registrations merely because their goods are stored in warehouses in different States.

“ The suppliers opting for this scheme will have to undergo physical verification and biometric-based Aadhaar authentication in the home State where he has a physical presence,” an official told businessline.

What it allows

The simplified registration, however, will be limited to sales made through e-commerce operators. If the business also wants to make supplies outside e-commerce platforms, it will have to obtain regular GST registration, including maintaining a physical place of business in each State/UT where such registration is required. “Under this scheme, single registration against a PAN can be obtained in a State/UT,” the official said.

A seller could apply for the simplified registration through the GST common portal in a State/UT where it does not have a physical presence. Its warehouses in other States could be declared as additional places of business, but only with the prior consent of the e-commerce operator concerned.

The proposal also places responsibilities on e-commerce operators to ensure that tax authorities can access information about sellers using the simplified registration route. E-commerce operators will have to appoint an authorised representative in every State/UT to provide information about registered suppliers when required by tax officials. They will also have to inform the GST authorities if a supplier is deactivated from their platform and assist tax authorities in proceedings and recovery of tax dues.

There will also be limits on the scheme. “A supplier who wishes to pass on Input Tax Credit (ITC) above ₹2.5 lakh in a month to a registered person will be required to withdraw from the scheme and then obtain regular registration,” the official explained.

The rules will also provide for what happens if an e-commerce operator withdraws its consent to a seller using its warehouse as the principal place of business. The seller will get 30 days to designate another e-commerce operator’s warehouse for that State/UT or exit the scheme.

Simplified GST

The proposal adds on a new chapter on a simplified GST registration mechanism that came into effect on November 1, 2025. That mechanism allows certain low-risk applicants, as well as businesses that self-assess their monthly output tax liability on supplies to registered persons at not more than ₹2.5 lakh (inclusive of CGST, SGST/UTGST and IGST), to obtain registration automatically within three working days. The latest proposal will effectively extend the simplified approach to small businesses whose sales are routed exclusively through e-commerce platforms.

Published on October 5, 2026