The central government has been trying every sort of relaxations for the trader’s community, whether offline or online. This time merchants and all those traders which are selling the goods and services through the online portal are now on the track to cover up their business while also staging themselves to be under the GST as soon as possible.
The central government has given an extra time to the online re-sellers to prepare themselves for the upcoming goods and services tax as earlier it was implied that a 1 percent tax will be collected from the shoppers of online from the e-commerce companies which will have to be deposited at the government department and a 1 percent deduction of tax from the payments of the supplier to be made at central state and local government bodies as tax collected at source (TCS).
An official statement mentioned that “brought into force from a date which will be communicated later, This step has been taken to provide more time for persons liable to deduct tax at source and to give e-commerce companies and their suppliers to prepare for the historic tax reform.”
It was a relaxation from the sides of registration, as the decision taken on Monday mentioned that till the TCS clause gets enforced, there is no need for the registration of the e-commerce platforms. According to the section 52 of GST acts in central and state legislation, it is clearly stated that the e-commerce platforms will have to collect the 1 percent of the total value of supplies done for the consumers at the source and have to pay that to the government.
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As a measure to keep a check on the sales and transactions being done in the e-commerce platform, the government has regularized this action. It has been asked that the traders need to deduct the TCS from the payments they receive from the e-commerce platforms where they sell their goods and will be eligible for the credit for the TCS along with the GST liability they are paying.
Amazon, an online e-commerce platform mentioned in an official statement, 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. We are grateful to the government for acceding to the request of the industry which is still in its infancy.”
