New GST registration route allows online sellers to expand using ecommerce warehouses as local bases

New Delhi: Small online sellers will be able to expand into states where they have no physical business premises by using an ecommerce platform's warehouse as their local base, under a new GST registration route that takes effect on November 1. The Central Board of Indirect taxes and customs (CBIC), through a series of notifications issued on Wednesday, has also revised tax rules for scrap purchases, hospitality services, fertilisers and retreaded tyres, eased access to refunds for exporters, and expanded e-invoicing requirements from January.

The simplification of GST registration rules follows a decision taken by the 57th GST Council meeting to lower expansion costs for small manufacturers and traders selling through online marketplaces, while making it easier for platforms to onboard sellers looking to reach customers nationwide.

Read more: India to implement changes to GST from November 1


The facility will allow eligible sellers already registered in their home state to use ecommerce warehouse to collect tax at source in other states without setting up a separate physical establishment there. The arrangement is subject to conditions, including ecommerce operator's consent, prescribed verification requirements, and a monthly output tax liability limit of ₹2.5 lakh. It excludes supplies to persons registered under the same PAN.

The new registration route does not exempt sellers from other GST obligations, including applicable invoicing, return filing and tax payment. Businesses selling outside the eligible platform-based arrangement cannot automatically use the facility.