With just 4-days left for the goods and services tax (GST) rollout, the government has deferred implementation of Tax Deducted at Source (TDS) and Tax Collection at Source (TCS) provisions as well as exempted from registration small businesses selling on e-commerce platform.
E-commerce companies will not be required to collect 1% TCS while making payment to suppliers under GST which will be rolled out from 1 July. As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1% on payments to suppliers to goods or services in excess of Rs2.5 lakh.
This provision has been kept in abeyance. Based on the feedback received from trade and industry, the government has decided to postpone provision relating to TDS (Section 51) and TCS (Section 52) of the CGST/State GST Act 2017, with the objective of ensuring smooth rollout of GST, the finance ministry said in a statement.
Small businesses, with turnover less than Rs20 lakh, will also not be required to register themselves under the GST for selling goods or services through e-commerce portal. In other words, persons supplying goods or services through electronic commerce operator liable to collect tax at source would not be required to obtain registration immediately.
Given the huge rush, it is unlikely that all registrations would be done before the 1 July rollout date
(http://www.livemint.com/Politics/urueNdCpZmQgfeRSn6kpUO/Govt-defers-TDS-TCS-collection-to-ensure-smooth-rollout-of.html)
More will update soon!!
