In light of recent amendments to the Act, rules, and notification number 34/2023 dated 31.07.2023, individuals supplying goods through e-commerce operators (ECOs) are now exempt from mandatory registration under the CGST Act. This exemption applies even if they supply goods through ECOs, provided they meet certain conditions:
- State/UT Specific Supply: a) The individual must be engaged in the supply of goods through an ECO, and such supplies must be limited to one State/UT.
- No Inter-State Supply: b) They should not engage in any inter-state supply.
- Possession of PAN: c) The individual must possess a Permanent Account Number (PAN) under the Income Tax Act, 1961.
- PAN Declaration: d) Before making such supplies, the individual must declare their PAN (which will be validated) on the common portal (GST Portal) along with the address of their place of business and the name of the State/UT or Union territory.
- Enrolment Number Requirement: e) The individual must obtain an enrolment number on the common portal upon validation of their PAN before engaging in any supply through any ECO.
Enrolment Procedure
The GSTN has developed the necessary functionality for the enrolment of unregistered persons, and it is available on the portal. Unregistered individuals who wish to enrol on the GST portal for making supplies of goods through ECOs in one State/UT are advised to follow these steps:
- Visit the GST Portal at https://www.gst.gov.in/ and click the GST Portal link.
- Select the “User Services” Tab and choose “Generate User Id for Unregistered Applicant.”
- Click “Yes” on the Warning window, allowing you to continue.
- Check the “To apply as a supplier to e-commerce operators” box.
- Fill out the form that opens on your screen.
Upon successful PAN validation, the enrolment number will be generated by the portal, allowing unregistered individuals to supply goods through ECOs in a specific State/UT.
