It seems that an emerging sector named e-commerce is now in a dooms period as the latest GST provision covering for the fact that the TCS will be collected on the behalf of sellers and must be submitted to the government for the proper continuation of the companies in the current tax structure. The e-commerce firms are stating that the tax compliance will make the sellers down from the portal and will make them choose the offline path of retailing. The companies also added that this will increase the cost of running and ultimately make the sector very narrow in the progression of growth.
The great law has proposed that the e-commerce sector must collect the 2 percent of tax and retain it while payment to the seller of the product they transferred and combining that money to the government TCS tax returns. An officer which is well aware of the situation said that “The provision will stay. E-commerce companies have flagged their concerns saying how these provisions are difficult to implement. But they also concede that it is doable.”
Federation of Indian Chambers of Commerce and Industry (FICCI) was mated by the giant organizations like Flipkart India, Amazon, and snap deal in order to oppose the ordinance while it is assumed that the law will anyhow pass and will give a major blow to the e-commerce industry and their growth. Bipin Sapra, tax partner at audit and consulting firm EY highlighted the situation in its own words and told that “TCS will create a lot of issues; it is a disincentive for people to trade online. A lot of money will get stuck in the system which will hurt the industry. The same purpose can be served by getting all the details of the suppliers from the e-commerce companies without levying TCS.”
