The Indian Government has provided a temporary relief to the e-commerce players by temporary delaying the implementations of several key GST bills.
This will give enough time to all the e-commerce web portals to settle their affairs and how to respond the situation.
GST: Relief for Amazon, Flipkart and other E-commerce
The government has delayed the implementation of the provision that required these platforms deduct tax on payment, made to their vendors from July 1. Also, small businesses have to register themselves.
E- Commerce Platform had feared a loss of business after it was revealed that the new bill will require the even the small businessman to register themselves with the government. Although the e-commerce platforms are still required to register themselves their vendors can register later. It is said that govt. will issue notification regarding a new date of implementations soon, as opposed to from July 1.
An Amazon Spokesperson welcomed the move stating that- “This ensures business continuity for the marketplace but most importantly benefits our sellers since they don’t have to deal with pressures of cash flow at a time when they are transitioning into a new tax regime”.
As per central and state GST, e-commerce entities were required to collect TDS or TCS for all the goods which are serviced under GST although it has been differed for further.
The finance ministry of India said that- “Based on the feedback received from trade and industry, the government has decided to postpone the provision relating to TDS (Section 51) and TCS (Section 52) of the CGST/State GST Act 2017, with the objective of ensuring a smooth rollout of GST”.
However the tax will be still implemented but on the later date, meanwhile, all the e-commerce players asked the Indian Govt. to apply the law as soon as possible to so as to ensure a tough competition.