VATLive > Blog > GST > India drops e-Commerce withholding GST - Avalara

India drops e-Commerce withholding GST

  • Jun 27, 2017 | Richard Asquith

India drops e-Commerce withholding GST

India has postponed a 1% Goods and Services Tax (GST) withholding tax on sales of goods and services on e-Commerce marketplaces.  The tax, Tax Collected at Source (TCS), was planned to be introduced with the 1 July 2017 launch of GST, which is replacing a range of overlapping indirect taxes.

The Delhi government had planned to require marketplaces such as Flipart, Amazon, and Snapdeal to hold back 1% TCS of the sales price from vendors using their sites.

e-Commerce registration threshold

It also was set to oblige all e-retailers to GST register, which had led to the marketplaces raising concern about businesses withdrawing from the market.  The government has now delayed this requirement, too.  The registration threshold has been set at Rs 20 lakh.

Latest Indian news

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.