GST Disbursement: E-Commerce Is Too Broad in Term of GST
Industry chamber Assocham said that ‘E-commerce’ may get misconstrued in the Goods and Services Tax (GST) law. As the definition given in the Goods and Services Tax (GST) Disbursement, it has been expanded that it could drive well elsewhere Amazon or Flipkart market stages and may even cover the service exchanges. The government is looking to keep the single rate of for each product to avoid complexity. As the law is set for a rollout either in July or September, Mr. Assocham wanted simplicity from the government to eliminate uncertainty among businesses. The scope of E-commerce’ is covered in all over the world & does not limit itself to cover electronic market service providers like Amazon, Flipkart.
Assocham further added that there are possibilities of unnecessary clarifications as per futures and commodity exchanges may get treated as electronic markets even though results trading means no delivery of actual goods. GST law is the union of multiple indirect taxes into a single law, hence, it is assumed current exception would be constant for banking and other financial institution with the non-banking financial company as these exceptions create the basic foundation for taxing services provided by them.