The government has postponed an important provision of GST. Under this, it was necessary for the e-commerce players to deduct tax on payment made to their vendors. GST is to be implemented soon ie July 1. Small businesses supplying e-commerce platforms will not be required to register for this immediately.
Some e-commerce units feared that they might lose their business. Actually, there are some small suppliers who operate from their home and these units have not yet registered themselves. These units had kept their demand in front of the government.
According to an official statement issued on Monday in this regard, e-commerce companies will not be required to charge 1% TCS (tax collection at source) when making payments to their suppliers. Under Central GST (CGST) and State GST Act, the rules for cutting 1% TDS (tax deducted at source) or TCS on payment to notified units of goods or services of more than 2.5 lakh rupees. This provision has been stopped at this time. According to the statement issued by the Finance Ministry in this regard, the government has decided to avoid CGDS / State GST Act 2017 TDS (Section 51) and TCS (Section 52) on the basis of the opinion obtained from trade and industry, So that GST can be implemented without any interruption. Small business units with less turnover of less than 20 lakh will not need registration under GST to sell goods or services through e-commerce. In other words, those who supply goods or services through e-commerce operator will not need to get immediate registration for GST.
According to the statement, the motive of this step is to provide responsible people / e-commerce companies and their suppliers to spend more time to get ready for historical tax reforms to cut tax at source. The GST network portal has started accepting the registration of TDS, TCS, and e-commerce operators from June 25. Given the huge crowd, the registration of all GSTs of registration is equal to the date of implementation ie i.e. before 1 July. GST is believed to be the biggest tax reform since Independence, in which the ex-excise, service tax, VAT and many other taxes are collected together. Through this, uniform market will be ready for unrestricted movement of goods and services.