GST: E-commerce cos against tax collection at source; 1% levy a dampener

The draft law proposed a levy of 1% without any limit, cos say this will not solve any problems

For Indian e-commerce players, the proposed tax collected at source (TCS) on them under the much-awaited goods and services tax (GST) being capped at one percent, failed to bring much cheer into the sector marred by valuation tumbles and massive layoffs.

According to industry experts, while the government is on the right track with the decision of GST Council to cap the percentage, the problem is with TCS itself.

The draft law proposed a levy of one percent without any limit and also said that the cap in the law would ensure the levy remains below that level.

Many e-commerce companies said the