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India GST e-commerce dispute

  • Feb 6, 2017 | Richard Asquith

India GST e-commerce dispute

Major Indian online retail platforms are campaigning to change proposals to the new Goods and Services Tax regime due to come in later this year.

Rivals Flipkart, Amazon and Snapdeal all claim that the Tax Collection at Source (TCS —Section 56) clause in the new GST regime, which requires marketplaces to withhold a % of Sellers’ revenues for payment directly to the tax authorities, will hold back the e-commerce industry.  They insist it could cost their Sellers Rs 400 Cores in cash flow, and is discriminatory.

TCS will only apply to online sales of taxable supplies.


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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.