Hello GST: +ve impact on e-comm;certain nuances to be dealt with

It is further speculated that e-commerce players might have to move from single registration to multiple registrations across each state under GST, thereby increasing compliance costs.

E-commerce market in India is constantly expanding its customer base in the country and is speculated to become a USD 100 billion sector by the end of 2020.

Currently the centre levies service tax based on the marketplace model but there is still ambiguity amongst state authorities on how the sector should be taxed.

In an interview with CNBC-TV18’s Menaka Doshi, Harishanker Subramaniam of EY said that if goods and services tax (GST) is levied on the sale of goods, it could drive up operational costs and impact customers.

It is further speculated that e-commerce players might have to move from single registration to multiple registrations across each state under GST, thereby increasing compliance costs.

Commenting on this, Subramaniam said that sectors like telecom, e-commerce and financial services may have to be treated differently by the law makers in order to have a single registration.

“If certain nuances are addressed then GST overall looks good for e-commerce,” he further added.

Source:http://www.moneycontrol.com/news/economy/hello-gst-+ve-impacte-commcertain-nuances-to-be-dealt-with_5055581.html

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