GST is all set to become the biggest tax reform our country has ever seen. It is going to disrupt all businesses, whether big or small. Large organizations have already begun performing Impact Analysis for their businesses. These organizations are now preparing to adopt technologies that can enable smooth GST implementation and help them transition into the new regime according to Bullion King, Prithviraj Kothari
E-commerce businesses have been extensively covered under the Revised Model GST Law. This segment has largely been unregulated so far. The ED law has now come up with specific sections detailing compliance requirements related to e-commerce companies and online aggregators.
The Goods and Services Tax will impact the behaviour of both sellers and buyers transacting online. Today’s consumers have many options to order goods or services online. Additionally, such transactions are not limited to India alone. From the comfort of their homes, Indian shoppers can purchase any legally permitted goods or services from anywhere in the world and have it shipped or consumed here, Kothari added.
Indian E-commerce giants like Flipkart and Snapdeal dominate the Hawala market, with thousands of sellers registered on their marketplace platforms selling online directly to consumers. Competing with these domestic players are international entrants like Amazon and e-Bay, which maintain separate portals for domestic and international orders.
The Model GST law has clearly specified that E-commerce Operators supplying to a person in India are mandatorily required to get their business registered under Goods and Services Tax. However, there still exists ambiguity over the applicability of these provisions to International E-commerce Operators such as Amazon.com and Ebay.com, which transact in foreign currency. The government may come up with additional clarifications and rules for such operators.
To conclude, Prithviraj Kothari is of the view that it will not be unfair to buy from domestic portals and will remain a way cheaper option for consumers, than ordering it from international portals. Consumers should place orders on international portals only if the particular good or service is unavailable on the domestic portal.
E-commerce businesses have been extensively covered under the Revised Model GST Law. This segment has largely been unregulated so far. The ED law has now come up with specific sections detailing compliance requirements related to e-commerce companies and online aggregators.
The Goods and Services Tax will impact the behaviour of both sellers and buyers transacting online. Today’s consumers have many options to order goods or services online. Additionally, such transactions are not limited to India alone. From the comfort of their homes, Indian shoppers can purchase any legally permitted goods or services from anywhere in the world and have it shipped or consumed here, Kothari added.
Indian E-commerce giants like Flipkart and Snapdeal dominate the Hawala market, with thousands of sellers registered on their marketplace platforms selling online directly to consumers. Competing with these domestic players are international entrants like Amazon and e-Bay, which maintain separate portals for domestic and international orders.
The Model GST law has clearly specified that E-commerce Operators supplying to a person in India are mandatorily required to get their business registered under Goods and Services Tax. However, there still exists ambiguity over the applicability of these provisions to International E-commerce Operators such as Amazon.com and Ebay.com, which transact in foreign currency. The government may come up with additional clarifications and rules for such operators.
To conclude, Prithviraj Kothari is of the view that it will not be unfair to buy from domestic portals and will remain a way cheaper option for consumers, than ordering it from international portals. Consumers should place orders on international portals only if the particular good or service is unavailable on the domestic portal.
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