Government defers TCS under GST, e-commerce companies hail move

By

Maverick Martins

Published
Jun 27, 2017

With confusion across all sectors in India with regards to the implementation of GST, the Government has decided to provide relief to the e-commerce sector by deferring implementation of TDS/TCS provisions and provide time to e-commerce firms to be GST ready.

The move will ensure that small businesses with less than Rs 20 lakh do not suffer from the implementation of GST as they have been exempted from registering under GST.
 
"Based on the feedback received from trade and industry, the government has decided to postpone the provision relating to TDS (Section 51) and TCS (Section 52) of the CGST/State GST Act 2017, with the objective of ensuring a smooth rollout of GST," the finance ministry said in a statement.

Amazon India has hailed the decision by the finance ministry and said that it will help in the smooth flow of business. It is a move that will benefit small businesses and ensure continuity as the sellers do not have to worry about making the transition into GST for now, Amazon India said in a statement.
 
E-commerce companies in India were to deduct 1 per cent TCS (tax collected at source) under GST of the amount payable to sellers and remit it to the government.

Earlier in the year, in a rare show of unity all e-commerce companies had come on a common platform to voice their concern over tax collection at source (TCS) norms under GST law and asked the government to scrap it completely.
 
All leading e-commerce firms in India are currently busy organising workshops to make sellers on their platform GST ready, which comes into effect this Saturday.