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GST rates: Flipkart, Amazon and others to levy 1% tax collected at source on sellers

NEW DELHI: E-commerce consumers are likely to remain unaffected once GST sets in from July 1 even as players like Flipkart and Amazon prepare to deduct one per cent of the payment it makes to sellers under the new tax regime.

While the move is not expected to impact consumers directly, it is expected to bring more transparency as the tax collection system gets more streamlined, experts said.

Revenue Secretary Hashmukh Adhia today announced that e-commerce players like Flipkart and Snapdeal will have to deduct one per cent TCS (tax collected at source) while making payments to suppliers.

“We believe GST is good for the e-commerce industry as it would eliminate hurdles in inter-state delivery and subsume the entry tax introduced on e-commerce shipments by some states,” an Amazon India spokesperson said.

The US-based firm, which competes with Flipkart, said it is studying the developments very closely and is working on enabling its seller ecosystem to be compliant with GST regulations.

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