TCS under GST would have slowed down e-commerce, economic growth, job creation, says FICCI
FICCI says that the TCS provision under GST would have led to a slowdown in e-commerce, economic growth and job creation as it would have a direct impact on sellers on these platforms.
- FICCI welcomes govt's decision to defer TCS provision under GST
- Says TCS under GST would have slowed down e-commerce, economic growth and job creation
- E-commerce sector is needed to be nurtured with right policy frameworks and guidelines
Top industry body the Federation of Indian Chambers of Commerce and Industry (FICCI) welcomed the government announcement of deferment of Tax Collection at Source (TCS) provision under the goods and service tax (GST). It said that the TCS under GST would have slowed down e-commerce, economic growth and job creation.
Dr A Didar Singh, Secretary General, FICCI said, “E-Commerce is one of the flourishing sectors of the country and has remained as a core part of the Government’s Start up India, Make in India, Digital India and Skilled India programs. The sector is needed to be nurtured with right policy frameworks and guidelines in order to make it more productive. FICCI welcomes the policy announcement of deferment of Tax Collection at Source (TCS) Provision Under GST”.
“TCS would have a direct impact on the sellers of the marketplace, who are generally small in nature with a turnover in the range of Rs 50 lakh to Rs 10 crore per annum. TCS could have disrupted the cash flow, thereby disrupting the level playing field between online selling and offline selling, and discourage sellers particularly SMEs from selling online. This carries the risk of slowing down the growth of e-commerce with consequential negative impact on economic growth, job creation, infrastructure investments and possibly tax collections itself”, Singh elaborated further.
FICCI has been persistently indulged in policy advocacies on several fronts towards removal of the clause in the greater interest of the booming sector and appreciates the move of the government which would help in bringing in simplicity in the operations of the e-commerce industry players.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.