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Flipkart, Snapdeal, Amazon come together to pick on GST

The stalwarts of Indian e-commerce - Flipkart's Sachin Bansal and Snapdeal's Kunal Bahl - along with Amazon India's Amit Agarwal, joined hands on Thursday to pick on the Tax Collection at Source (TCS) clause in the Goods and Services Tax. 

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At the Ficci conference on e-commerce industry in India.
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The stalwarts of Indian e-commerce - Flipkart's Sachin Bansal and Snapdeal's Kunal Bahl - along with Amazon India's Amit Agarwal, joined hands on Thursday to pick on the Tax Collection at Source (TCS) clause in the Goods and Services Tax. 

The three men were speaking at the E-commerce industry in India's press meet organised by the Federation of Indian Chambers of Commerce & Industry (Ficci). 

Flipkart's Executive Chairman Sachin Bansal told the audience that Tax Collection at Source (TCS) within the GST Bill was an "area of concern for e-commerce". Bansal said that thanks to TCS, nearly Rs 400 crore of capital would be locked into the system. This would hamper the working capital of the e-companies. 

In the GST Model Law, TCS was proposed particularly for e-commerce companies. In a bid to keep a check on tax evasion, the government proposed TCS which would make the e-commerce companies responsible to collect tax deductible from the e-tailers payments and report it to the government. However, given that every e-commerce platform has thousands of sellers, the process would be quite cumbersome. 

A report by NDTV said that the e-commerce companies believed that the law in its existing form, with TCS as a part, could bring the thriving industry to a standstill. 

"E- commerce is the confluence of digital India, Start-up India and Make in India. TCS will be an impediment," Snapdeal CEO Kunal Bahl, said. 

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