GST Council lets small e-commerce sellers register in any state via platform warehouses

At its 57th meeting, the GST Council introduced a provision that permits small online merchants to register in any Indian state by designating an e-commerce platform’s warehouse as their principal place of business, even if they lack premises there. The rule requires the seller to keep a physical base in one home state and to maintain only one registration per PAN for platform-based supplies, with the operator’s consent automatically recorded.

Sellers whose monthly credit turnover stays below ₹2.5 lakh can access this facility without exposing the treasury to risk; those crossing the limit must move to standard GST registration. Additionally, the Council affirmed that tax liability on platform services will be determined by the actual service rendered, ensuring uniform tax treatment across different platform models. Industry executives welcomed the change as a long-awaited step to reduce structural barriers and help small sellers scale nationally, while also noting the need for tax neutrality across varied digital-commerce models. The meeting did not alter GST rates but signaled a shift toward technology-driven compliance and proportionate enforcement.