New Delhi, June 26, 2017
To provide more time to e-commerce players to prepare for the Goods and Services Tax (GST), the Finance Ministry has said that tax deduction and collection at source under the new levy will be started at a later time.
Similarly, persons supplying goods or services through electronic commerce operators liable to collect tax at source will also not be required to register immediately until the tax collection at source (TCS) provision is brought into force.
“This step has been taken to provide more time for persons liable to deduct tax at source/ e-commerce companies and their suppliers to prepare for the historic tax reform,” said the Ministry on Monday.
However, others who have to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date when the respective sections are brought into force.
The move comes at a time when the GST common portal has re-opened the enrolment window for fresh registrations of first time taxpayers, including those to be registered as TDS/ TCS and enrolment of GST practitioners. It is also open for existing taxpayers to complete their enrolment process.
E-commerce players are also expected to enrol under GST during this time.
However, the Finance Ministry statement said the decision has been taken to ensure smooth rollout of GST and is based on the feedback of trade and industry.
GST is set to be rolled out from July 1.
[The Hindu Business Line]