GST AND ITS IMPACT ON ONLINE MARKETPLACES IN INDIA

Authors

  • Raja Sarkar Dr. Sabyasachi Das Lecturer, IMBA

Keywords:

Abstract

GST or The Goods and Services Tax which is set to roll out from 1st of July, 2017 nationwide in India is being touted as the single biggest indirect tax reform in the Indian taxation system since independence and it’s expected to make the tax structure simple with a seamless credit chain. GST is the integrated indirect tax which is levied on the supply of goods and services. There will be dual GST with the Center and State simultaneously levying it on the common tax base. The CGST and SGST will be charged on intra-state supplies whereas IGST( Integrated GST) will be charged on inter-state supplies. The small businesses having turnover up to Rs.20 lakhs are exempted from registering under GST. All the other taxpayer having the turnover of more than Rs.20 lakhs (Rs.10 lakhs in case of northeast states) are required to register and pay GST. The GST is based on the “One tax, one market” concept which should be a welcome step for online marketplaces. In the last decade or so, e-commerce has seen an astronomical growth and India is pegged as the second biggest market for e-commerce after China. The e-commerce market in the country is expected to exceed the $100 billion mark by 2020. The rapid growth in this sector has resulted in conflicts regarding multiple tax issues along with other challenges such as rising competition, dwindling profit margins etc. They are also facing litigation owing to their innovative business models. The Government is trying to make the tax structure simple by introducing GST and promoting trade, while keeping a close watch on tax evasion.

References

i) “Impact of GST on online marketplaces” by IAMAI & PWC

ii) “Decoding the Model GST Law: Key features of the draft Model GST Law” by PWC

iii) “Impact of GST on E-Commerce Marketplace Sellers: A high level impact analysis of Goods and Services Tax on the businesses of Sellers registered on Online Marketplace” by clearTax (Dated 27/04/2017)

iv) “Impact of GST on e-commerce marketplace: Here is all you need to know” by Archit Gupta, ETRetail.com (Dated 02/03/2017)

v) “How will GST affect online sellers on e-commerce platforms?” by Vartika Gupta, The Warehouse (Dated 11/03/2017)

vi) “GST Impact: Pain points in e-commerce remain” by Karan Choudhury, Business Standard (Dated 04/08/2016)

vii) www.cbec.gov.in/htdocs-cbec/gst

viii) “Impact of GST on ecommerce” by e Tailing India (Dated 17/03/2017)

ix) “Are you ready for GST in ecommerce? How should you be prepared?” by Rebecca Menezes, INDIANOnlineSeller.com (Dated 31/01/2017)

x) “Taxing changes: How the big ecommerce players and sellers are grappling with GST” by Shilpa S Ranipeta, The News Minute (Dated 07/03/2017)

xi) “GST impact: E-commerce sector” by GSTINDIA.COM (Dated 21/12/2016)

xii) “Thoughts On How GST Would Impact e-commerce In India” by Annkur P Agarwal, MEDIANAMA (Dated 03/02/2017)

xiii) Goods and Services Tax (India)- Wikipedia, the free encyclopedia

xiv) Online marketplace- Wikipedia, the free encyclopedia

xv) “Flipkart, Amazon, Snapdeal oppose tax collection at source under GST” by Yuvraj Malik, livemint (Dated 09/02/2017)

xvi) “Effect of Goods and Services Tax on E-Commerce Industry” by AMZ Blast (Dated 28/04/2017)

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Published

2017-06-30

Issue

Vol. 6 No. 7 (2017): JUNE 2017

Section

Articles

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