Meesho makes platform non-GST inclusive to attract millions of new sellers

SoftBank-backed e-commerce firm Meesho said that it has made the platform inclusive for non-GST sellers. The platform has made significant technological adaptations which will enable non-GST sellers to start selling on the platform from 1 October 2023. This move comes in response to the recent announcement made by the GST Council that allows e-commerce platforms to onboard non-GST sellers with a turnover of up to Rs 40 lakhs.

This move will potentially unlock 15-20 million sellers in historically under-penetrated states for the company. Meesho also recognises the unique characteristics of non-GST sellers, such as their high motivation and locally relevant selection from categories such as fashion, consumer electronics, and home and kitchen.

"The government of India's decision to eliminate mandatory GST registration for small businesses selling online is a watershed moment," said Vidit Aatrey, co-founder and chief executive officer, Meesho. "We believe that 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 are committed to our goal of digitising 10 million sellers by 2027."

Based on industry insights, it has been observed that about 1.2 million sellers drop out every year during the registration process due to GST requirements. The new move by the government will empower entrepreneurs and businesses from various sectors, geographical regions, and diverse product selections to join the digital commerce revolution. Further, this change aligns seamlessly with Meesho's overarching vision of enabling 100 million businesses, including individual entrepreneurs, to thrive on the online marketplace.

"Readiness by e-commerce platforms to foster inclusivity within the e-commerce landscape by onboarding non-GST sellers will facilitate economic inclusivity and also contribute to the broader vision of Digital India," said Ashish Aggarwal, vice president and head of public policy at NASSCOM. "This will unlock immense potential for businesses in underserved regions, driving economic growth and job creation."

Meesho has streamlined the registration process, allowing sellers to sign up using their enrolment ID/UIN in place of GSTIN. Product catalogue uploads are now more accessible, as HSN codes and GST percentages are made 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. The firm has also introduced technological updates to ensure that product shipping labels prominently display the enrolment ID/UIN, enhancing transparency and compliance.