Relief for Amazon, Flipkart as small sellers get some more time for their registration according to GST guidelines.
Ecommerce companies Amazon, Flipkart will need to register under the guidelines of GST, but the small suppliers on the same platforms will have a relief. No immediate registration is to be made for the small sellers or suppliers who sell on these marketplaces (source ET).
Ecommerce players feared about their business as many of the small suppliers(sellers) are still to register as per the GST guidelines.
Ecommerce companies will not be required to collect 1% TCS (tax collected at source) while making payment to their suppliers for goods sourced under GST, the finance ministry said. GST will add up 1 to 2 percentage to GDP, and will also increase the tax base of the nation.
“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,” the finance ministry said.
New date for its implementation will roll out soon.
Small businesses with a turnover of less than Rs 20 lakh don’t have to register themselves under GST for selling goods or services through ecommerce portals. “This step has been taken to provide more time for persons liable to deduct tax at source/ecommerce companies and their suppliers to prepare for the historic tax reform,” the statement added.
Spokesperson from All India Online Vendors’ Association (AIOVA) said “We welcome the move as it gives breathing space to marketplaces but would like to see the TCS implemented as soon as possible as it gives level playing field”
GST now has started accepting registrations of TDS, TCS and ecommerce operators from 25th June. Due to huge rush it might not be possible to be done with all registrations before July 1. Small Sellers on these marketplaces still have time to register their business accorging to GST guidelines, this has lead relief for Amazon, Flipkart.