24/2024 – Central tax — Seeks to amend Notification No. 5/2017-Central Tax dated 19.06.2017
Summary
Notification 24/2024, issued by the CBIC on October 9th, 2024, basically tweaks an existing rule outlined in Notification No. 5/2017 from June 19th, 2017. This older notification specifies who is exempt from needing to obtain GST registration. This new notification adds another category to the list of those who don't need to register for GST, even if they make taxable supplies.
Specifically, Notification 24/2024 exempts individuals or businesses exclusively supplying goods through Electronic Commerce Operators (ECOs), provided that the ECO is liable to collect Tax at Source (TCS) under section 52 of the CGST Act, and the supplier has provided their PAN to the ECO. To put it simply, if you only sell goods online via platforms like Amazon or Flipkart, and those platforms are already collecting TCS on your sales and you have shared your PAN details with them, you are now likely exempt from GST registration.
This is a significant relief for small businesses and home-based sellers who primarily operate through e-commerce platforms. These suppliers do not need to separately register for GST if the ECO is already collecting TCS on their supplies. There are no specific deadlines mentioned in the notification besides the effective date of the notification itself, which would be immediately after its publication. Therefore, affected businesses can take advantage of this exemption right away. Ensure you have submitted your PAN details to the e-commerce operators you use.
Key Changes
| Change | Impact |
|---|---|
| Amendment to the definition of 'registered person' concerning compulsory registration for certain categories of suppliers. | Potentially broadens or clarifies the scope of who is required to register under GST, especially impacting smaller businesses or specific sectors. |
| Modification to the conditions and procedures for obtaining GST registration. | May streamline or add complexity to the registration process, affecting new businesses or those seeking amendments to their registration. |
| Changes related to the applicability of GST on certain goods or services based on location of supplier and recipient. | Could alter the tax incidence on specific transactions, potentially affecting pricing and profitability for businesses involved in inter-state or international trade. |