It seems that a black cloud is hovering over the e-commerce companies as these are most tensed for the clause arose spontaneously from the GST and now they are Searching for revisions in the draft model GST law, India’s e-commerce giants like Amazon, Flipkart and Snapdeal had come together at FICCI to talk about an arrangement in the law related to TCS (tax collection at source) – an arrangement in the Goods and Service Tax.
With the draft model GST law about to get finalized inside the month, e-commerce companies stress that there is urgency in carrying out an exhaustive impact analysis of this tax arrangement on online marketplaces. The shopping portals take issue with this referring to that would discourage sellers and also be time devouring and inconvenient giving that there are thousands of sellers and merchants on each platform.
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In its existing structure, the e-commerce companies reportedly believe that the TCS clause ‘has the potential to bring the e-commerce industry to a standstill.’ The gathering pressure is being cast because they believe that the current regulations will accomplish more harm than great. TCS considers e-commerce companies responsible for collecting and remitting taxes on behalf of its sellers.
In the starting, the GST was much welcomed by these companies but now it seems that there has been some problem raised by it. However, they have now asked for amendments in the model GST law, holding hands with banks, sellers and small and medium enterprises.
