The operators of the E-Commerce firms would have to deduct the tax collected at source, the TCS, when the payment would be done to the suppliers. This would be done as per No 1 GST Consultant In India the new rule of the GST as the aggregator’s definition has been done away with.
This would increase the burden of the compliance on the operators of e-commerce as this deduction of two percent will have to be deposited to the government. This would not increase the burden of the taxation on the consumer as the tax credit would be given to the supplier.
As per the experts the inter- state movement of the goods would also result in levying the same Control Risk Assessment In India amount of tax making the total TCS deduction to be two percent though this would not increase the burden on the consumers.
When the goods would be returned by the consumers, the TCS will not have to be deducted by the e-commerce companies because the actual sale didn’t actually happen.
The GST law’s draft model does not define the aggregators and the government has stated that the government will provide the specifications and the notifications of the types of businesses to be covered under the draft model. Aggregators basically comprise of Ola, Urbanclap and Uber working as a platform for the Roadmap Of Ind AS Implementation providing transport. The provision of the TCS will not be applicable to the aggregators.
On the deductions of the TCS the e-commerce organizations would have to pay the taxes.
Contact CAC India and AKGVG & Associates for suggestions associated with GST, GST Rates in India and Roadmap to GST Implementation in India
AKGVG & Associates 