Foreign companies operating in the ecommerce space, such as Amazon, Google, Apple, need to register for goods and services tax (GST) in all states, in order to comply with the tax collected at source (TCS) rules. This provision applies to foreign players, as well to cater to Indian consumers.
Under the provisions, notified entities have to deduct up to 1% state GST and 1% central GST on intrastate supplies. The scope of this is to check tax evasion as TCS will leave a trail of transactions.
However, regarding the foreign ecommerce platforms, there will be no TCS liability if the seller is based outside India.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now