Foreign e-commerce companies are required to register for GST in all states, govt sets 1% TCS on them under GST
New Delhi, Sept 21 (KNN) Government has mandated all the foreign e-commerce companies such as Amazon and Google, among many others to apply for Goods and Services Tax (GST) registration in all the states across the country separately in the next 10-12 days.
The government proposed Tax collected at source (TCS) for e-commerce companies and based on the recommendation of GST council, government has ruled that both Indian and foreign e-commerce companies are to collect tax at source from October 1, 2018.
However, government has given a relief to e-commerce commerce companies by imposing 1% tax collected at source on them under GST from next month.
The government has fixed the tax at 1% against the cap of 2% under GST Act.
Under central GST, the Central Board of Indirect taxes and Customs (CBIC) has fixed the tax rate at the rate of 0.5%.
Similarly, states would put it at 0.5% under state GST category.
Albeit, e-commerce companies are against this levy as it would increase the compliance costs.
The companies in the e-commerce segment have also requested the government to provide option for single registration instead of multiple registrations across the states.
However, the government maintains its decision for the companies to register separately in every state in the country.