No GST registration for small biz selling on ecomm platform

No GST registration for small biz selling on ecomm platform
In a move that cheered ecommerce players like Flipkart, Amazon and others, the government onMonday exempted small businesses selling on ecommerce platforms from registration under the GST network till further orders.

A government statement said that ecommerce companies will not be required to collect 1% TCS (tax collected at source) while making payment to suppliers under GST.

“The 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,” an official statement said.

Big ecommerce players had opposed TCS, saying that if implemented, it would discourage merchants from selling online and would result in a capital lock-down of about Rs 400 crore per annum.

The government said that it has taken the decision to provide more time for persons liable to deduct tax at source/ecommerce companies and their suppliers to prepare for the historic tax reform.

As per the original provision, ecommerce companies were to deduct 1% while making payments to suppliers under the GST from July 1.

Another provision of companies required to collect TDS (tax deducted at source) at 1% on payments to suppliers to goods or services in excess of Rs 2.5 lakh has also been postponed.

Small businesses with turnover of less than Rs 20 lakh will not be required to register themselves under the GST for selling goods or services through ecommerce portals.

Welcome move

Welcoming the decision, Amazon said the move will ensure business continuity for marketplaces.

Amazon said, “This will benefit small businesses since they don’t have to deal with pressures of cash flow at a time when they are transitioning into a new tax regime,” Amazon.in said in a statement.
Flipkart did not comment on the development.


Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry