The Confederation of All India Traders has requested Union Finance Minister Nirmala Sitharaman to waive mandatory GST registration for selling products through e-commerce platforms.

GST runs contrary to the vision of "Digital India" of Prime Minister Narendra Modi, it said in a statement, and urged the Finance Minister to set things right in consultation with the GST Council.

"Under the GST Act, a seller who wishes to sell products in e-commerce is invariably required to obtain a GST number. Any seller who does not have a GST number is not allowed to sell products on any e-commerce portal. This provision of the Act is barring lakhs of traders across the country from using e-commerce to sell their products," a joint statement by the traders' body's national President B.C. Bhartia and Secretary General Praveen Khandelwal said.

"...several ministries and state governments are eager to bring more and more sellers on e-commerce platforms but the provision of not allowing sellers without having a GST number has become a major deterrent and roadblock to embrace digital commerce by lakhs of traders of the Country."

The Centre is talking about empowerment of small retailers in the country but since these small retailers are having their annual turnover less than Rs 40 lakh – the threshold for GST registration, they should be exempt from GST registration for digital commerce too.

Instead of GST registration, Aadhar number, bank details or similar other measures may be designated as essential qualification for onboarding on e-commerce portals, the CAIT said, adding that a large number of artisans, craftsmen, cottage and household industries are facing challenges.