Meesho, India’s only true e-commerce marketplace, has announced that it has made the platform inclusive for non-GST sellers. 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 comes in response to the recent announcement made by the GST Council that allows e-commerce platforms to onboard non-GST sellers with a turnover of up to INR 40 lakhs.
Speaking about the monumental announcement, Vidit Aatrey, Co-founder and CEO, Meesho, said, “In a remarkable step towards fostering an inclusive and digitally empowered India, the government of India’s decision to eliminate mandatory GST registration for small businesses selling online is a watershed moment. It symbolizes not only the government’s commitment to enabling economic growth but also its responsiveness to the aspirations of artisans, craftsmen, women entrepreneurs, and millions of SMEs across the country. At Meesho, we welcome this historic development with enthusiasm. 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. With our relentless dedication to empowering small businesses, Meesho is now even more poised to play a pivotal role in propelling our MSMEs into the Digital Age and nurturing an ‘Atmanirbhar Bharat’—a self-reliant India. We look forward to this transformative journey, committed to our goal of digitizing 10 million sellers by 2027.”
Speaking about this, Ashish Aggarwal, Vice President and Head of Public Policy at NASSCOM said, “We are delighted with the government’s decision to allow small businesses to sell online without having to register under GST. This will unlock immense potential for businesses in underserved regions, driving economic growth and job creation. Readiness by ecommerce platforms to foster inclusivity within the e-commerce landscape by onboarding non-GST sellers will facilitate economic inclusivity and also contribute to the broader vision of Digital India.”
Based on industry insights, it has been observed that a staggering 1.2 million sellers drop out every year during the registration process due to GST requirements. This transformative move by the government will empower entrepreneurs and businesses from various sectors, geographical regions, and diverse product selections to join the digital commerce revolution. Further, this change aligns seamlessly with Meesho’s overarching vision of enabling 100 million businesses, including individual entrepreneurs, to thrive on the online marketplace.
Meesho’s technology enhancements to accommodate non-GST sellers are multifaceted, ensuring a smooth transition and an optimal experience for all. The key changes include:
● Simplified Registration Process: Meesho has streamlined the registration process, allowing sellers to sign up using their Enrolment ID/UIN in place of GSTIN.
● Catalog Upload Simplification: Product catalog uploads are now more accessible, as HSN codes and GST percentages are made optional, reducing compliance complexities.
● Geo-Restricted Discovery: To ensure adherence to government regulations, Meesho has optimized product discovery processes, to ensure non-GST sellers’ products are only sold intra-state.
● Enhanced Shipping Labels: Meesho has introduced technological updates to ensure that product shipping labels prominently display the Enrolment ID/UIN, enhancing transparency and compliance.
To support this transformation, Meesho is also developing new educational content tailored specifically for non-GST sellers. This educational material will be available on the Supplier Panel and YouTube, enabling non-GST sellers to adapt to the e-commerce landscape and scale their businesses rapidly.
This move will enable geographic diversification by unlocking historically under-penetrated states for the company. Meesho also recognizes the unique characteristics of non-GST sellers, such as their high motivation and locally relevant selection from categories such as Fashion, Consumer Electronics and Home & Kitchen.