With just 4-days left for the GST rollout, the government has deferred implementation of TDS and TCS provisions as well as exempted from registration of small businesses selling on e-commerce platform.
E-commerce companies will not be required to collect 1% TCS while making payment to suppliers under GST which will be rolled out from 1 July. As per the Central GST (CGST) Act, the notified entities are required to collect TDS at 1% on payments to suppliers to goods or services in excess of Rs 2.5 lakh.
This provision has been kept in abeyance. Based on the feedback received from trade and industry, the government has decided to postpone provision relating to TDS (Section 51) and TCS (Section 52) of the CGST/State GST Act 2017, with the objective of ensuring smooth rollout of GST, the finance ministry said in a statement.
Small businesses, with turnover less than Rs 20 lakh, will also not be required to register themselves under the GST for selling goods or services through e-commerce portal. In other words, persons supplying goods or services through electronic commerce operator liable to collect tax at source would not be required to obtain registration immediately.