Archive · 12 Oct 2026
GST Changes Could Help Small Sellers Expand Across States
The GST Council approved changes that could make it easier for some small businesses to sell in more Indian states.
Eligible sellers may be able to keep their goods in a marketplace’s warehouse in another state instead of setting up their own place there.
This could save money and help sellers reach more customers.
The Council also approved quicker, automatic refunds when sellers have extra money in their electronic tax accounts.
That could leave more money available for their businesses.
But a separate tax change could make some online deliveries more expensive for e-commerce platforms.
Different platforms may be affected differently, depending on how they currently pay tax.
The changes will begin only after the government formally notifies them.
The GST Council approved a facility allowing eligible small sellers to use e-commerce platform warehouses as their principal place of business in other states.
The facility applies to sellers with input tax credit claims of up to Rs 2.5 lakh a month, subject to prescribed conditions.
Automated refunds of excess electronic cash ledger balances could ease sellers’ working-capital pressures.
A separate approved change would impose a uniform 5% GST without input tax credit on certain online deliveries by goods transport agencies.
The changes could benefit small sellers but may raise costs for some platforms’ logistics operations; they will take effect once formally notified.
- Who
- Small sellers, e-commerce platforms and goods transport agencies.
- What
- The GST Council approved interstate warehouse registration for eligible sellers, automated refunds of excess electronic cash ledger balances, and a change to the tax treatment of certain online deliveries.
- When
- The approvals were made last week; the proposals take effect once formally notified by the government.
- Where
- India, including sales and deliveries across state borders.
- Why
- The measures could reduce compliance and working-capital pressures for small sellers, while the delivery tax change could alter costs for platforms.
Potential benefits
Potential costs and conditions
Interstate warehouse access
Potential benefits
Supporters say eligible small sellers could enter other state markets without paying to establish their own premises there, and could position stock closer to customers.
Potential costs and conditions
The facility’s success depends on platforms making warehouses available and final rules clarifying that platforms are not liable for sellers’ tax defaults.
GST treatment of online deliveries
Potential benefits
Platforms paying 18% GST with input tax credit could benefit from the lower 5% rate, according to an indirect-tax specialist cited in the article.
Potential costs and conditions
Platforms whose logistics arms currently claim the exemption could face higher costs under the 5% rate without input tax credit; the loss of credit may limit savings for other platforms.
- Warehouse eligibility threshold
- Input tax credit claims of up to Rs 2.5 lakh a month, subject to prescribed conditions.
- Warehouse registration change
- An eligible seller may use an e-commerce platform’s warehouse in another state as its principal place of business there.
- Cash ledger refunds
- The Council approved system-driven refunds of excess electronic cash ledger balances.
- Online delivery tax
- Certain goods transport agency deliveries of online orders to unregistered buyers would attract 5% GST without input tax credit.
- Potential platform effects
- The delivery change could raise costs for platforms whose logistics arms currently claim the exemption; effects may vary among platforms.
- Implementation
- The proposals will take effect once formally notified by the government.