 "Meesho app")
With an eye on 15-20 million non-GST registered sellers, SoftBank-backed Meesho has opened up its platform to onboard them for selling products online, the company said on Tuesday.
The GST Council in July exempted small businesses making intra-state supplies through e-commerce platforms from taking GST registration if their turnover is below Rs 40 lakh in case of goods and Rs 20 lakh in case of services. The rule kicked in from October 1.
"The platform has made significant technological adaptations which will enable non-GST sellers to start selling on the platform from October 1, 2023. This move will potentially unlock 15-20 million sellers historically under-penetrated states for the company," Meesho said in a statement.
The company claims to have 1.4 million sellers on its platform.
Meesho said it recognizes the unique characteristics of non-GST registered sellers, such as their high motivation and locally relevant selection from categories like fashion, consumer electronics and home and kitchen.
"We believe that 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 digitizing 10 million sellers by 2027," Meesho Co-Founder and CEO Vidit Aatrey said.
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Based on industry estimates, about 1.2 million sellers drop out every year during the registration process due to GST requirements, the statement said.
Meesho said the new rule will empower entrepreneurs and businesses from various sectors, geographical regions, and diverse product selections to join the digital commerce revolution.
The company has streamlined the registration process, allowing sellers to sign up using their Enrolment ID or UIN in place of GSTIN.
To ensure compliance with government regulations, Meesho said it has optimized product discovery process, to ensure non-GST registered sellers' products are only sold intra-state.
Meesho Co-founder and CTO Sanjeev Barnwal said,"With this timely exemption, we not only unlock vast opportunities for millions of resilient SMEs scattered across our nation but also significantly enhance our product offerings for our discerning consumers.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
