Foreign e-commerce companies rush to register for GST in all states
Amazon, Google, Apple and other foreign companies that operate in the electronic commerce space will have to register for the tax on goods and services (GST) in all states in the next 10 to 12 days.
The government has said that e-commerce companies must collect the tax at the source as of October 1. To comply with taxes levied at the source (TCS), e-commerce players must register in each state. This provision applies to both foreign players and Indian consumers.
A clarification to this effect was given at a meeting between e-commerce players and the Central Board of Indirect Taxes and Customs held on Tuesday, according to a person deprived of the deliberations of the meeting.
However, the provision mentions the rate as up to 1%, the rate, for now, will be 0.5% for each state and central GST.
For e-commerce companies, this implies a deduction of 1% of payments to their suppliers for goods sold on their platforms that must be deposited with the government. Tax experts said the government should provide a centralized registry for foreign e-commerce players.
There is no exemption from registration for foreign e-commerce companies