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February 5, 2022

Government takes several initiatives to enhance collaboration between small business and e-commerce platforms

by CA Shivam Jaiswal in Income Tax

Government takes several initiatives to enhance collaboration between small business and e-commerce platforms

  • Government takes several initiatives to enhance collaboration between small business and e-commerce platforms
  • Drives being conducted under One District – One Product (ODOP) initiative across States to facilitate on-boarding on e-Commerce platforms
  • Special focus being placed on onboarding artisans and handicraftsmen, especially those manufacturing Geographical Indication (GI) goods and toys

Government has taken several initiatives to enhance collaboration between small business and e-commerce platforms.

 Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue has exempted sellers of specified handicraft goods made by craftsmen from obtaining compulsory registration under GST Act, thus enabling collaboration between small businesses and e-commerce platforms. 

Department for Promotion of Industry & Internal Trade (DPIIT) has actively engaged with various large e-commerce platforms to onboard artisans and handicraftsmen, including those engaged in manufacture of Geographical Indication (GI) goods and toys. Further, under the One District – One Product (ODOP) initiative, drives have been conducted across various States, facilitating on-boarding of sellers of identified products on e-Commerce platforms to provide greater visibility for small businesses from rural sector. 

Ministry of Micro, Small & Medium Enterprises (MSME) has taken multiple initiatives for enhancing participation of small business in e-commerce which include: 

  • Procurement and Marketing Support (PMS) Scheme: Under this Scheme, the sub-component of “Adoption of e-Commerce by Micro Enterprises” has been introduced. This new component includes providing financial assistance for selling products or services by Micro Enterprises (up to 10 new products) through e-commerce portals. 
  • Portals of National Small Industries Corporation (NSIC): NSIC is operating MSME Global Mart portal. This is a non-transactional B2B Portal which facilitates e-Marketing support to MSME’s. The portal provides information of business, technology and finance and also exhibits the core competence of Indian SMEs. 
  • E-commerce portal of Khadi and Village Industries Commission (KVIC): KVIC has developed an online portal https://www.kviconline.gov.in  for selling Khadi  products added by Khadi Gramodyog Bhavan, New Delhi.

 Ministry of Tribal Affairs has launched an e-market place www.tribesindia.com portal through Tribal Cooperative Marketing Development Federation of India Limited (TRIFED). It has forged tie ups with various leading e-Commerce platforms and is on-boarding tribal artisans with their products for online sales.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Rajya Sabha today.

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