E-commerce is a big sector in India today and involves huge transaction of buying and selling of goods and services online. Most of these transactions are either business to business, business to consumer or consumer to business.
The e-commerce sector has to deal with various taxes like VAT, CST, excise, and service taxes as per the present taxation policy. With the GST about to be implemented in the next few months, most of the online companies are expecting for a uniform approach towards the rules and regulation of GST
It could be a huge breather for e-commerce sector as the announcement of GST will allow seamless movement of the goods across the country. With GST implementation, it will be a great opportunity for new start-ups or businessmen as the new rules in GST assures uniformity, simplification in process and a centralized registration
All the e-commerce platforms will be required to do tax collection at source (TCS) i.e. 1% of the net amount will be collected on behalf of the supplier of the goods.
Under the new GST the rate of tax of 1% will be applicable for both CGST and SGST law and therefore the e-commerce operator will deduct 2% under both the laws.
For compliance, an e-commerce operator would be required to register in each of the state from where the supply is being made, including the supply of services, and deduct the tax under the respective GST laws in each state. GST ready is our new software to help you update your invoicing and payments processes and update your IT systems to comply with GST.