GST Ecommerce provision postponed – TDS, TCS Provision under GST for E-commerce deferred for two month

By Paras Mehra

( 2.78K Views) June 26, 2017

GST Registration for Ecommerce Sellers Postponed?

For smooth implementation of GST in India from coming 1^st July, 2017 the government has taken another step by postponing the TDS, TCS provision applicable on ecommerce companies and the government by two months.

In simple words, ecommerce provisions for TCS deduction have been postponed for two months.

The Notification further states that GST registration for ecommerce sellers has also postponed for next two months. However, through notification states that GST registration for ecommerce sellers is not mandatory, but the companies like Amazon and flipkart will not let sellers to register until and unless GST number is submitted and hence, GST registration is still mandatory for sellers on ecommerce.

What is section 52 for TCS on ecommerce?

Section 52 of CGST act, mandates each and every ecommerce companies like flipkart and Amazon to deduct TCS (Tax collected at source) from the payments of the sellers and deposit the same to the government.

This was not easy for ecommerce platform to comply considering the size of transactions and hence government has postponed the section implementation.

What is Section 51 for TDS on government?

Section 51 of the CGST law empowers the government to notify any department or establishment of the central or state government, local authorities, government agencies etc to deduct tax @1% for any payment made or credited.

Now, implementation of this section has also been postponed.

Impact of this decision on GST registration

The notification on this matter clearly states that ecommerce sellers selling on flipkart, Amazon are also exempted from taking registration since section 51 or 52 is not enforced.

However, there is another school of thought where expert claims that since section 24 is notified which is relating to mandatory registration, the GST registration would still be mandatory.