Decision to allow firms below GST threshold to engage in e-commerce to help small businesses: Piyush Goyal

New Delhi: The decision to allow firms below the GST threshold to engage in e-commerce is a major decision, which will help small businesses get benefitted from the fast-growing online sector, Commerce and Industry Minister Piyush Goyal said on Thursday. The decision will be a game-changer for the success of the government's Open Network For Digital Commerce (ONDC) platform, the minister added.

"It will bring the small retailers into the e-commerce ecosystem," he said, adding handicraft, handloom, textiles and small retailers will be the major gainers.

The GST Council has decided to ease the process for intra-state supplies made through e-commerce portals.


Now, such suppliers will not have to obtain GST registration, if their turnover is lower than Rs 40 lakh and Rs 20 lakh for goods and services, respectively. This will come into effect from January 1, 2023.




The minister was speaking at the unveiling of the Business Reforms Action Plan 2020 assessment report released by Finance Minister Nirmala Sitharaman.

Goyal further said that the decision for rationalising the GST rates on cut and polished diamonds would help in promoting the growth of the sector.

"It will give a big boost to the industry. These decisions will increase work opportunities in a big way," he added.