Meesho, an e-commerce portal, now allows non-GST (goods and services tax) businesses to sell on its system.

Meesho, supported by SoftBank, has made its platform available to enroll 15-20 million non-GST registered businesses so they may start selling their products online.

This choice, which took effect on October 1, is consistent with the government's GST Council's most recent statement, which permits e-commerce platforms to accept non-GST merchants with an annual sales of up to Rs 40 lakh.

According to the company, Meesho has made technological changes to aid with this shift.

The registration procedure has been shortened, HSN codes and GST percentages during catalogue uploads have been made optional, product discovery has been optimized to meet with legal requirements, and shipping labels have been improved for compliance and transparency.

The Finance Ministry changed the GST rules in August to remove small e-commerce companies from the requirement to register as of October 1. According to a notification by the Central Board of Indirect Taxes and Customs, sellers are no longer need to obtain a GST number in order to use ecommerce platforms, subject to specific criteria.

The company asserts that their platform is used by 1.4 million sellers.

According to Meesho, it recognizes the distinctive qualities of non-GST registered merchants, such as their high motivation and regionally relevant choice of products from sectors including fashion, consumer electronics, and home and kitchen.

According to the corporation, the government's decision regarding non-GST sellers will enable business owners and entrepreneurs from a variety of industries, places of residence, and product categories to participate in the digital commerce revolution.

"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," said Vidit Aatrey, Co-founder and CEO, Meesho.

"We believe 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. We look forward to this transformative journey, committed to our goal of digitising 10 million sellers by 2027."

Meesho is creating teaching materials exclusively for non-GST vendors in addition to advancing technology. These resources, which are available through Meesho's Supplier Panel and YouTube channel, will help non-GST vendors get around the online environment and expand their enterprises.