Meesho logo.
E-commerce unicorn Meesho has opened its platform to sellers without a Goods and Services Tax registration, starting October 1, 2023, the company said in a statement on Tuesday.
The move is expected to potentially unlock 1.5-2 crore sellers from historically under-penetrated states for the company.
This comes after a recent GST Council directive permitting e-commerce platforms to onboard non-GST sellers with a turnover of up to Rs 40 lakh.
“We believe that this exemption will not only open up vast horizons for aspiring entrepreneurs but also contribute significantly to enriching our product offerings,” said company co-founder and chief executive Vidit Aatrey.
The directive is a shot in the arm for the SoftBank-backed startup, which aspires to onboard 1 crore businesses on its platform by 2027.
“These non-GST sellers will have to streamline their processes and e-commerce players have to ensure an equivalent degree of proficiency on the part of these sellers because customers today are highly evolved and demanding, they will not discriminate between GST and non-GST sellers,” said a business advisor and startup mentor, who did not wish to be named.
The e-comm player has made several technological adaptations to welcome these sellers, including simplified registration and catalog upload processes, geo-restricted discovery to enforce intra state sale and enhanced shipping labels. Meesho is also developing educational content tailored specifically for this bracket of sellers.
It has been observed that about 12 lakh sellers drop out every year during the registration process owing to GST requirements, the company statement highlighted.
“Implementation of the amendment in the GST Act and the Rules made thereunder shall facilitate e-commerce for small businesses who face various challenges adapting to the GST system in India especially due to limited resources and expertise,” said Amrita Jain, senior associate at law firm Singhania and Co.