To ensure that the chain of input tax credit is not broken, vendors to online marketplaces are registering for Goods and Services Tax (GST). This is in spite the government deferring the TDS and TCS collection at source, and exempting small businesses with a turnover less than Rs 20 lakh that supply to online marketplaces from registering.
The government is yet to notify the provisions for TCS and TDS. According to the Central GST Act, notified entities are required to collect TDS at 1 per cent on payments to suppliers to goods or services valued at more than Rs 2.5 lakh.
Meanwhile, in order to make themselves GST compliant, vendors are rectifying issues related to data reconciliation, invoicing, and accounting integration with sellers’ ERP.
To ensure that the chain of input tax credit is not broken, vendors to online marketplaces are registering for Goods and Services Tax (GST). This is in spite the government deferring the TDS and TCS collection at source, and exempting small businesses with a turnover less than Rs 20 lakh that supply to online marketplaces from registering.#
However, many vendors are unsure about the exact GST impact on them, and are hoping that their expected compliance would be clear once the TCS provisions are notified, media reports said. Vendors are also unsure about the states in which they should register. (RKS)
Fibre2Fashion News Desk – India
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