SUMMARY
The decision is in line with the GST Council's recent announcement permitting ecommerce platforms to onboard non-GST sellers with a turnover of up to INR 40 Lakh
Meesho said it has made certain technological changes to its platform from October 1, 2023, which will allow non-GST sellers to join, and also simplified the registration process
The development comes ahead of the start of Meesho’s festive season sale, Meesho Mega Blockbuster Sale, from October 6
Ecommerce startup meesho
has said non-GST registered sellers can now onboard its platform, in line with the GST Council’s recent announcement permitting ecommerce platforms to onboard non-GST sellers with a turnover of up to INR 40 Lakh.
Meesho said it has made certain technological changes to its platforms from October 1, 2023, which will allow non-GST sellers to join. The startup said it has also simplified the registration process by allowing sellers to use their Enrolment ID/UIN instead of GSTIN.
Additionally, catalogue uploads have been made simpler by making HSN codes and GST percentages optional, reducing compliance complexities.
To ensure adherence to government regulations, Meesho has optimised product discovery processes, to ensure non-GST sellers’ products are only sold intra-state, it said in a statement.
Meesho has also updated shipping labels to prominently display the Enrolment ID/UIN, enhancing transparency and compliance.
Based on industry insights, Meesho said, it has been observed that 1.2 Mn sellers drop out every year during the registration process due to GST requirements. This transformative move by the government will empower entrepreneurs and businesses from various sectors, geographical regions, and diverse product selections to join the digital commerce revolution, it added.
“In a remarkable step towards fostering an inclusive and digitally empowered India, the government of India’s decision to eliminate mandatory GST registration for small businesses selling online is a watershed moment. It symbolises 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,” Vidit Aatrey, cofounder and CEO of Meesho, said.
The development comes ahead of the start of the festive season. Meesho’s ‘Meesho Mega Blockbuster Sale’ will begin from October 6, two days before the start of the festive sales of its rivals, Flipkart and Amazon.
Meesho has also launched a loyalty programme to benefit and engage customers and sellers.
The ecommerce unicorn has also expanded its presence in the branded products space. As part of this, Meesho will list an array of longtail and branded products on the in-app branded store Meesho Mall, with a key focus on categories such as beauty and personal care, footwear, and electronics accessories.
Earlier, the company claimed it turned profitable and posted a consolidated profit after tax (PAT) as of July 2023. However, Meesho reported a net loss of INR 3,247.8 in FY22, up 550% year-on-year (YoY). Total revenue stood at INR 3,359.4 Cr during the year, which was a 300% jump from INR 838.6 Cr in FY21.
