GSTN registrations set to open for ecommerce vendors – The Economic Times–16-06-2017

E-commerce companies such as Amazon, Flipkart and Swiggy concerned about losing business after the rollout of the goods and services tax (GST) on July 1 shouldn’t have to worry about being forced to exclude products sold by unregistered vendors.
The GST Network, which provides the new tax regime’s technological backbone, plans to start registration of new taxpayers soon to ensure there is no disruption in online commerce.
“Registration for first-time taxpayers will open soon in about a week’s time,” said a GSTN official.
All vendors on ecommerce platforms have to be registered on the GST Network. That’s because online market platforms have to mandatorily collect tax on any payment they make to a supplier.
The marketplaces have been grappling with the matter as a substantial number of vendors fall below the tax threshold and hence aren’t registered with the tax authorities of either the states or the Centre. Many of these are small businesses, some even operating from home.
Another set of sellers were only offering tax exempt items on these platforms and hence were not required to pay tax or register with the tax department.