Meesho Embraces Non-GST Sellers as Government Lifts Restrictions

• ByStartupStory     |    October 3, 2023

Ecommerce marketplace Meesho has opened its platform to non-GST (goods and services tax) sellers. This decision, which came into effect on October 1, aligns with the recent announcement by the government’s GST Council, allowing ecommerce platforms to onboard non-GST sellers with an annual turnover of up to Rs 40 lakh. To facilitate this transition, Meesho has introduced technological changes, said the company. It has streamlined the registration process, made HSN codes and GST percentages optional during catalogue uploads, optimised product discovery to comply with government regulations, and enhanced shipping labels for transparency and compliance.

Meesho said it recognises the unique characteristics of non-GST sellers, such as their high motivation and locally relevant selection in categories such as fashion, consumer electronics, and home and kitchen. The government’s decision regarding non-GST sellers will empower entrepreneurs and businesses from various sectors, geographical regions, and diverse product selections to join the digital commerce revolution, said the company.

“The Government of India’s decision to eliminate mandatory GST registration for small businesses selling online is a watershed moment. It symbolizes not only the government’s commitment to enabling economic growth but also its responsiveness to the aspirations of artisans, craftsmen, women entrepreneurs, and millions of SMEs across the country,” said Vidit Aatrey, Co-founder and CEO, Meesho. “We believe this exemption will not only open up vast horizons for aspiring entrepreneurs but also contribute significantly to enriching our product offerings, enhancing our consumers’ experiences. We look forward to this transformative journey, committed to our goal of digitising 10 million sellers by 2027.”

In addition to technological upgrades, Meesho is also developing educational content tailored specifically for non-GST sellers. This material can be accessed through Meesho’s Supplier Panel and YouTube channel and will provide resources for non-GST sellers to navigate the ecommerce landscape and grow their businesses. In August, the Finance Ministry altered the GST law, exempting small ecommerce businesses from mandatory registration starting from October 1. Previously, any seller wishing to use ecommerce platforms had to obtain a GST number, but this requirement has now changed, subject to certain conditions, as per a notification by the Central Board of Indirect Taxes and Customs.

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