E-TAILERS GET THREE MONTHS’ BREATHER
The revenue department has decided to keep in abeyance GST provisions relating to reverse charge mechanism, tax deducted at source (TDS) and tax collected at source (TCS) for another three months till September end. The GST Council in its meeting on Mrach 10 suspended the provision for decduction of TDS and collectionn of TCS, as well as implementation of the reverse charge mechanism (RCM) till June 30.
With this, e-commerce companies can heave a sigh of relief since they would not be required to collect 1 percent TCS while making payments to suplier under GST. According to Central GST (CGST) Act, notified entities are required to collect TDS at 1 per cent on payments to goods or services supliers in excess of Rs. 2.5lakh. The resverse charge mechansim, under which registered dealers need to pay taxes in case the goods are procured from unregistered business alo stands deferred till September end.
The Business Standard, 27th June 2018, New Delhi