CBIC to propose single-state registration GST scheme

The Central Board of Indirect Taxes and Customs (CBIC) will present to the GST Council next month a scheme to significantly reduce the compliance burden of small suppliers of e-commerce companies. 

Although the council approved drawing up of such a scheme in September 2025, the details and the framework will be presented at its next meeting in New Delhi on September 12.

Sources say that under the new arrangement, small suppliers will not need separate good and services tax (GST) registrations in every state they operate in. A single registration, with that state's GST authority mandated to conduct audits and ensure compliance would be enough.

"According to the framework, e-commerce companies will be given the responsibility of ensuring that the suppliers are registered with the authorities," the officials said.

A supplier may have its principal place of business and GST registration in one state but want to sell goods in another through an e-commerce operator. Since, the goods are being sold in other states, the supplier needs to have a registration there as well. Authorities often penalise suppliers for non-compliance if they fail to register in the states where their goods are being sold.

"This has been discussed at length… why should the supplier be held responsible for non-compliance in other states, when they are effectively operating from only one location," the official said. "The proposed mechanism will address this by allowing the warehouse of the e-commerce operator to be treated as the supplier’s place of business in that state."

"The objective is to provide relief to micro enterprises. It will make it easier for them to expand their reach without having to create a physical presence in every state."