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E-commerce players loses GST rate battle after levy of 1% TCS on sellers

Companies find it hard to convince the govt to treat them as a 'platform' and not a 'shop'

Karan Choudhury  |  New Delhi 

Even after months of discussions with the government and putting forward representations via sectoral bodies, e-commerce players lost the GST battle. The government on Friday said one per cent tax collected at source (TCS) would be charged by e-commerce companies.   In the absence of any straightforward classification, e-commerce companies find it tough to convince the government to treat them not as a “shop” but as a “platform”, which vendors use to sell products.   Under the new goods and services tax (GST) regime, this will imply e-commerce firms ...

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E-commerce players loses GST rate battle after levy of 1% TCS on sellers

Companies find it hard to convince the govt to treat them as a 'platform' and not a 'shop'

Even after months of discussions with the government, putting forward representation via industry bodies such CII, ecommerce players lost the GST battle. The government today said that one percent tax collected at source (TCS) would be charged by ecommerce companies much to their chagrin.In the absence of any straightforward classification, e-commerce companies find it hard to convince the government to treat them not as a 'shop' but as a 'platform', which vendors use to sell products. Under the new goods and services tax (GST) regime this will imply that e-commerce firms will have to deduct one percent tax collected at source while making payments to their suppliers. This, e-commerce stalwarts such as Amazon, Flipkart, Shopclues, and Snapdeal have argued, will lock Rs 400 crore of capital belonging to their sellers every year in the GST regime. "The one per cent TCS is a working capital hit and a hindrance. I don't think it is end of the world, but it would be better if it was not ... Even after months of discussions with the government and putting forward representations via sectoral bodies, e-commerce players lost the GST battle. The government on Friday said one per cent tax collected at source (TCS) would be charged by e-commerce companies.   In the absence of any straightforward classification, e-commerce companies find it tough to convince the government to treat them not as a “shop” but as a “platform”, which vendors use to sell products.   Under the new goods and services tax (GST) regime, this will imply e-commerce firms ... image
Business Standard
177 22

E-commerce players loses GST rate battle after levy of 1% TCS on sellers

Companies find it hard to convince the govt to treat them as a 'platform' and not a 'shop'

Even after months of discussions with the government and putting forward representations via sectoral bodies, e-commerce players lost the GST battle. The government on Friday said one per cent tax collected at source (TCS) would be charged by e-commerce companies.   In the absence of any straightforward classification, e-commerce companies find it tough to convince the government to treat them not as a “shop” but as a “platform”, which vendors use to sell products.   Under the new goods and services tax (GST) regime, this will imply e-commerce firms ...

image
Business Standard
177 22