GST rollout: Little change for online shoppers after tax regime

DoThe Best
By DoThe Best July 1, 2017 11:58

GST rollout: Little change for online shoppers after tax regime

GST rollout: Little change for online shoppers after tax regime

GST will not impact customer experience, said All India Online Vendors Association of India – an umbrella body of 1,500 active sellers.

Online marketplaces Flipkart, Amazon, Paytm Mall and Voonik did not respond to queries. However, experts said the GST regime will simplify a few aspects for sellers and ecommerce portals.

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“The advantage for business under GST’s ‘one nation, one tax’ system is that, from a tax perspective, the rates will be the same irrespective of where goods are coming from, unlike today where tax rates could be different,” said Abhishek Jain, indirect tax partner, EY.

Also, there will be no entry tax issues, a big concern on which litigations were happening. Those are big positives for this industry, he added.

Rajeev Dimri, leader, indirect tax at BMR & Associates LLP agrees. “In a few states, there are entry taxes applicable on inward movement of goods. This leads to higher tax costs and additional compliances with respect to goods destined for such states. In some cases, even the customers need to generate a bill and other documentation to receive the products bought online. These hassles relating to entry tax will get relaxed with onset of GST.”

Another major impact for e-commerce platforms under GST is to collect one per cent TCS (Tax Collection at Source) while paying suppliers. However, the government has deferred the clause.

In February, Amazon, Flipkart and Snapdeal unanimously opposed the TCS clause on the grounds that it would lock `400 crore of sellers’ working capital and discourage them from doing business online. But under the new system, every month, sellers on e-commerce marketplaces will have to file three returns on the GSTN: one, that they fill out with all the invoices, and two others, that will be generated by the system every month. Sellers have also raised concerns about GST Network’s ability to handle the voluminous data.

[News Source] 

DoThe Best
By DoThe Best July 1, 2017 11:58
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