In what would have come as a relief to ecommerce marketplaces such as Amazon and Flipkart, the proposed tax collected at source (TCS) on them under the goods and services tax (GST) is to be capped at 1%, the GST Council has decided gst experts in India.
The TCS provision will allow authorities to track transactions carried out through ecommerce platforms and ensure compliance. Some states such as Karnataka, home to a number of ecommerce players, had proposed this levy for the first time and then subsequently pushed for it within the GST framework. The supplier of goods can set off TCS against its final GST liability. Theoretically, the levy could be even lower than 1%. GST consultants.
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