E-Commerce market in India has seen unparalleled boon in past decade or so. This has not only attracted investors but tax authorities and law makers as well. As per sources, E-Commerce companies are lobbying government to keep aggregators running market place model out of GST net comparable to traders.
By the same logic, they also want these companies — such as Flipkart, Amazon India and Snapdeal — to be viewed as “service providers” to the vendors, liable to pay GST only on service income.
Vendors would be liable to pay GST on the goods sold through their portals, they said in a representation on the matter.
The online retail industry, facing multiple taxation issues, is keen that their core concerns are addressed before GST is rolled out on April 1, as per the government’s schedule.
“The concept of India becoming ‘one country, one tax rate’ for the first time post-Independence is very promising for ecommerce,” said Pramod Jain, head of taxation at Flipkart, which supports the recommendations. “It will widen the choices for consumers as they will enjoy full freedom for the first time to buy from any state or seller.”
The detailed representation to the government is aimed at ensuring a friendly GST regime designed around global practices. A joint working group of both central and state government officials is looking at the GST design architecture for ecommerce.