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Benefits of GST (Goods & Services Tax)

Benefits of GST (Goods & Services Tax)

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The GST (Goods & Services Tax)  is relied upon to give following advantages:-

  Elimination of Multiple Taxes

 The greatest advantage of the Goods & Services Tax is a disposal of various aberrant expenses. All expenses that as of now exist won’t be in the picture. This implies current assessments like extract, octroi, deals charge, CENVAT, Service imposes, turnover charge and so on won’t be relevant and all that will fall under a basic expense called as GST.

  Saving More Money

For a typical man, GST materialness implies the disposal of twofold charging in the framework. This will diminish the cost of products and enterprises and help normal man for sparing more cash.

It is normal that the cost of FMCG items, little autos, silver screen tickets, electrical wires and so on is required to lessen.

  Ease of business

 GST will bring one nation, one assessment idea. This will counteract unfortunate rivalry among states. It will be useful to do interstate business

   Easy Tax Filing and Documentation

 For a representative, GST will be a shelter. No numerous assessments imply consistence and documentation will be simple. Return recording, impose instalment, and a discount process will simple and bother free.

  Cascading Effect lessening

GST will be material at all phases from assembling to utilization. GST will give charge credit advantage at each phase in the chain. Today at each stage edge is included and impose is paid entire sum, in Goods & Services Tax you will have charge credit advantage and expense will be paid on edge sum as it were.

It will lessen falling impact of duty consequently diminishing the expense of the item.

   More Employment

As GST will lessen the cost of item it is normal that request of an item will increment and to take care of the demand, supply needs to go up. The necessity of more supply will be tended to by just expanding work.

  Increase in GDP

 As request will develop normally generation will develop and subsequently it will build a total national output. It is assessed that GDP will develop by 1-2% because of the GST.

  Reduction in Tax Evasion

 GST is a solitary assessment which will incorporate different expenses, making the framework proficient with next to no odds of defilement and Tax Evasion.

  More Competitive Product

As GST will address the following impact of expense, between state charge, high coordinations cost it will make fabricating more aggressive. This will convey favourable position to agent and buyer.

  Increase in Revenue

 GST will supplant every one of the 17 roundabout assessments with single duty. The increment in item request will eventually expand impose income for state and focal government.

Products and administration assess is a help for the Indian economy and the regular man. It is an appreciated stride taken by the administration.

 


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GST to be positive for auto, retail sector; negative for SMEs: Fitch

GST to be positive for auto, retail sector; negative for SMEs: Fitch

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GST: Fitch-Ratings

New indirect tax regime Goods and Services Tax (GST) is likely to be beneficial for auto, cement and organised retail sectors, but will have a negative impact on oil and gas, and SME sectors, Fitch Ratings said today.

In contrast, the impact would be broadly neutral for property, electricity, telecom, pharmaceutical and fertiliser sectors, it said.

“The national service tax (GST), is unlikely to lead to rating changes for any of Fitch’s internationally rated corporates despite being negative for certain sectors,” it said.

However, implementation risks will remain over the next 12 months due to the complexities of adopting the new system amid a culture of poor compliance, particularly among the traditional retail and SME sectors.


GST Ready Software – For Small And Medium Business

Implemented on July 1, Goods and Services Tax (GST) replaces over 17 different taxes, including excise, service tax and VAT.

“A number of near-term challenges for the larger corporates are likely to persist until all trading counter parties are on the system and familiar with the different tax rates that will apply to their goods and services,” Fitch said.

Under the GST regime, a corporate will only be able to apply GST input tax credits after its supplier of goods or services has first settled its GST payment with the government. This means that the burden of non-compliance by the supplier will rest with the purchaser and not the government, the US-based agency said.

“Accordingly, GST tax truancy by financially weak and non-compliant companies lower down the supply chain could limit the amount of input tax credits available for the larger and financially strong corporates,” Fitch said.


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Source: India Today
GST: How to be prepared post GST?

GST: How to be prepared post GST?

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GST

Goods and Service Tax has now come into effect and the Indian economy is following the one nation one tax concept. Several taxes are subsumed into GST and cascading tax effect has also been removed. GST is expected to have a mixed impact on the prices of the goods and services. Some goods may get cheaper, whereas some may get expensive and therefore, it would also impact your personal finance. Let’s figure out and analyse the impact of Goods and Service Tax on your personal finance and how you can stay prepared for the same.

Impact on your loan and banking transactions

If you are planning to take a loan, which needs you to pay processing charge, then you have to shell out more tax on such processing charge than before. Earlier, there was a 15 percent service tax on the processing charge but now it is replaced with GST at 18 percent.

Borrowings like home loan, car loan, personal loan, the gold loan, etc. may get charged with processing fees. Similarly, all the normal transactions for which banks earlier used to charge the service tax, will now get costlier by 3 percent as it will now attract GST at 18 percent. Statement request, forex services, cheque book request, cash deposits, demand drafts etc also become costlier.

To save tax, explore and apply for the products which has zero processing charge. Avoid unnecessary bank transactions that invites GST charges.


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Impact on credit card usage

Credit card is an important spending tool and it helps you to build a good credit history in the long term. Interest on credit card EMIs and processing fees on such EMIs would now get charged with 18 percent GST.

Some credit cards offer EMIs on zero processing charge. If you are looking to buy something on EMI, then analyse the extra cost that you need to pay for it due to GST applicability and thereafter decide whether you should avail EMI or not.

Manage your post Goods and Service Tax investments

Goods and Service Tax also impacts the investment as earlier service tax was applied to various investment instrument and now it has been replaced by GST. Mutual funds, Stock investments, Realty Investment etc. will now get marginally costly in comparison to pre-GST period.

The mutual fund’s expense ratio would now increase by around 3 percent. The transaction cost of shares will also scale up marginally. Under construction properties used to be the popular investment product for realty investors in the pre-GST period and it was charged with state Vat and service tax, but now it would be charged by 12 percent GST which is slightly higher than previous tax.

Real estate is now entitled to get the benefit of input tax credit; therefore, the property rates are expected to fall to that extent if developers pass the benefits to the customers. Realty investors should conduct proper due diligence before investing and wait for the developers to revise their prices as per GST.

GST to make insurance premium high

Insurance products such as life insurance, health insurance and vehicle insurance will now attract GST at 18% rate. You cannot avoid the extra tax burden, but in the long run all the insurance companies will get benefited with input tax credit, therefore if they pass such benefits to their customers, then you may also get benefits in terms of stable premium rates in the long term.

Do not fall prey to false promises to switch your existing plan for reducing the insurance cost. Stay insured and do not forget to pay your premium on time.


GST Ready Software – For Small And Medium Business?

Finally

GST has eliminated the cascading tax effect and therefore in the long term you may experience fall in your regular expenses such as groceries, clothes, medicines and other goods consumables, however, expenses related to services such as DTH bill, telephone bill, banking charges, investments, credit card bills etc. may go up slightly.

The overall impact may not be significant in monetary terms, in the short to medium term, but in the long term you may experience less stress on your personal finance. So, if you are able to save money due to GST, then invest it wisely to balance the tax effect as you may need money to pay higher tax for some other expenses.

 

Source: Money Control
GST shakes enterprise confidence of service providers

GST shakes enterprise confidence of service providers

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Optimism weakened at goods producers and service providers alike, hampered by concerns among some firms that GST could harm consumer demand

GST

Business conditions in India’s services sector improved in June. The Nikkei Purchasing Managers’ Index (PMI), a monthly survey, showed that services PMI climbed to an eight-month high of 53.1 in June from 52.2 in the previous month. A reading above 50 indicates economic expansion, while a one below 50 points towards contraction.

However, business confidence among service providers took a beating owing to uncertainty surrounding the impact of the goods and services tax (GST). Earlier, the manufacturing PMI too had shown that manufacturers were jittery about GST.

As a result, the Business Expectations Index for services fell to a four-month low of 56.2, compared to 57.8 in May. In the case of manufacturers, the Future Output Index fell to a three-month low of 59 in June, compared to 61.7 in May.

Under GST, services will be taxed at a rate of 18%, higher than the 15% levied earlier. A fall in demand for discretionary services related to entertainment and recreation is anticipated due to the rise in prices.

Secondly, the cost of compliance could see a sharp rise. The concept of centralized registration no longer exists. Now a service provider will have to get state-wise registration done for each state it operates in. Those having a pan-India presence will be hit the most.


GST Ready Software – For Small And Medium Business?

There is limited clarity on how the input tax credit mechanism would work for services. Also, implementing anti-profiteering rules would be more complex for services than products, given the intangible nature of the former.

Sharing similar concerns, Pollyanna De Lima, economist at IHS Markit and author of the Nikkei PMI report, said, “Nonetheless, the falls in confidence levels highlight no easy walk to stronger economic prosperity. Optimism weakened at goods producers and service providers alike, hampered by concerns among some firms that the goods and services tax could harm consumer demand, with competitive pressures also seen as a threat to the outlook.”


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Source: Livemint
Various tax slabs under GST worry traders: CAIT

Various tax slabs under GST worry traders: CAIT

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Goods & Service Tax

Classification of different items under various tax slabs of GST has created an environment of anxiety and concern among the trading community across the country, Confederation of All India Traders said.

Various verticals of retail trade are demanding lower tax on items being dealt by them since they have been categorised under higher tax slab in comparison to tax slab of current VAT tax regime, CAIT said.

As per an analysis, 1,211 goods and 36 services have been so far classified under GST out of which nearly 50 per cent goods have been placed under 18 per cent rate; 14 per cent under 5 per cent rate; 17 per cent under 12 per cent rate and 19 per cent under 28 per cent rate, CAIT said in a statement.

In view of growing discontent about proposed GST rates, CAIT has urged the government to revisit the rate schedule. “The wider impact of the classification of items under different tax slabs needs to be gauged very cautiously since under GST not only the taxes paid on goods but even the taxes paid on the services will be eligible for input tax credit,” CAIT said.

Besides, taxes paid on inter-state purchases of goods or availing services will also be eligible for input tax credit, it added. “Hitherto, both these advantages were not available under VAT tax regime. Therefore, impact on the prices of commodities will have to be drawn after calculating advantages of input tax credit,” CAIT said.

Source :http://www.moneycontrol.com/news/business/economy/various-tax-slabs-under-gst-worry-traders-cait-2291089.html
GST service providers say small biz lacks readiness for July 1 roll-out

GST service providers say small biz lacks readiness for July 1 roll-out

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With a little over a month remaining for the roll-out of the Goods and Services Tax (GST), concerns over preparedness of taxpayers — especially small and medium enterprises (MSMEs) — continue. Designated technology providers, known as GST service providers (GSPs), cite unfrozen rules and lack of general awareness as the primary reason.

GSPs have widely interacted with various kinds of businesses as they are the designated application developers through which a taxpayer can connect with the GST Network (GSTN) server. While GSTN, which has built the IT backbone for the new tax regime, would provide its own tool for filing tax return under the GST, GSPs will ensure that custom-made front-end applications are available for different needs of businesses.

A taxpayer can either directly file return through the GSTN or can use any of the 34 GSPs applications as they are authorised to connect with the server.

There is also a distinct divide in GST preparedness between MSMEs and big businesses as some GSPs that primarily cater to companies with annual turnover of Rs1,000 crore and above sound confident about their clients. For example, Vinod Tambi, COO of Excellon Software, which has clients with high-volume transactions with presence at multiple locations, said they were ready for the July 1 roll-out. The company is also a designated GSP but not focused on SMEs.

Although some experts agree that big businesses are in better shape than smaller ones, they argue that most such companies have multiple smaller suppliers, whose lack of readiness could adversely affect the whole supply chain, thus impacting big firms.

The GST regime is designed for free flow of input tax credits. So, if a supplier fails to file valid return due to lack of awareness or readiness, it could impact the cash flow of other entities in the chain.

“Big companies are definitely more prepared than MSMEs, but the latter doesn’t have clarity over several aspects. Many service providers aren’t clear about registering in different states if they have places of business spread over multiple states,” Archit Gupta, founder & CEO of Cleartax.com, said. He added that many companies that are exempt under GST aren’t sure whether to register with the GSTN or stay out of the system.

 

Source :  PTI

 

Hospitality industry seeks single GST rate of 18%

Hospitality industry seeks single GST rate of 18%

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 Hospitality industry

After the announcement of GST rates with different tax slabs across rates for hotel rooms, the hospitality industry is hoping the government will reconsider a single slab of 18 per cent to create a level playing field, apart from giving a boost to tourism.

With room rates above ₹5,000 being slapped with a 28 per cent GST rate, hotel companies are seeking a reduction to bring it back to the earlier level when luxury and service tax was about 20 per cent.

“The biggest issue for the hospitality industry has been the high rate of 28 per cent GST for hotels charging room rentals above ₹5,000. Before GST, the luxury and service tax was at about 19 per cent and this has now gone up to 28 per cent. While GST is a gross tax and there is going to be input credit, the cost for hotel companies goes up by almost 10 per cent and there should be an absolute rate tax,’’ says Vikas Chadha, Executive Director, Keys Hotels.

Dynamic pricing

Considering there is dynamic pricing in the hotel industry like in the case of airlines depending on demand and supply, having a flat slab across the industry is what is going to work, say industry players. “There should beflat tax as room rates are dynamic and based on demand, and the cost of real estate and labour cost varies across the country. There is already high competition in the industry and these slabs create a regulatory measure, which is not needed. Tourism will be impacted and measures like e-visa will get negated if room rentals above ₹5,000 have 28 per cent GST which will have tourists going to Sri Lanka rather than Goa,’’ says Vishal Kamat, CEO, Kamat Hotels.

The GST council has pegged GST for AC eateries and those with liquor licence at 18 per cent, non-air-conditioned restaurants at 12 per cent, hotels charging room rentals between ₹1,000 and ₹2,500 at 12 per cent, ₹2,500 and ₹5,000 at 18 per cent and above ₹5,000 at 28 per cent.

Describing the rates as too complex, high and uncompetitive, the hotel industry has said it will make a representation to the Finance Minister and Tourism Minister to review the rates.

“The Government should realise that while neighbouring countries like Myanmar, Thailand, Singapore, Indonesia and others levy taxes ranging from 5 to 10 per cent, we cannot afford to have this kind of complex and high GST. This is simply not viable. Tourists will simply skip India’’ said Dilip Datwani, President, Hotel and Restaurant Association of Western India (HRAWI).

“At best there should be one or two slabs of either 12 per cent or 18 per cent to create a level playing field. If single slabs can be created for categories like cars and air conditioners, why can’t hotel rooms get clubbed under a single rate,’’ asks Kamat.

“One of the biggest hurdles for the Indian hospitality and tourism industry, in terms of attracting international tourists is that of not having a competitive tax structure. A country as small as Singapore witnesses 10.90 million tourist arrivals against 6.31 million in India. Nations like Malaysia and Thailand attracted 24.7 million and 19.09 million tourists in 2014 and earned foreign exchange of $18,299 million and $26,256 million. In contrast, India managed to earn a meagre $94 million,” said Bharat Malkani, past President, HRAWI.

Source : http://www.thehindubusinessline.com/economy/policy/hospitality-industry-gst/article9710909.ece
How will GST impact MSMEs?

How will GST impact MSMEs?

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A simplified tax structure and unified market will improve operational efficiencies, especially of MSMEs with a wider reach

MSMEs

The increasing formalisation of the Indian economy, especially through digitisation, is an inexorable advance that will upend the business model — based on the twin arbitrage of labour and cash transactions — of micro, small and medium enterprises (MSMEs).

India’s paradigm shift to the Goods and Services Tax (GST) regime in July will increase their compliance costs and snare a majority of them into the indirect tax net for the first time.

Sharp practices

So far, unorganised MSMEs have grown faster than organised peers because of lower cost structures stemming from tax avoidance, and not having to pay social security benefits to employees (such as provident fund and gratuity), and excise duty (if turnover is less than ₹1.5 crore).

Some MSMEs also understate employee base or set up multiple ventures to avoid breaching tax thresholds. Such sharp practices helped them price products and services competitively over the past few decades and also maintain operating margins at organised player levels.

The vicissitudes resulting from the impact of GST are many. To wit, for manufacturers, the reduction in the threshold for GST exemption to ₹20 lakh from ₹1.5 crore means tens of thousands of unorganised MSMEs will soon be cast into the tax net.

And digital transaction trails created by dual authentication of invoices under GST will strengthen tax compliance. Additionally, a lower tax burden under GST will reduce the cost of raw materials and logistics.

For example, a study by Crisil shows that freight costs could decline 1.5-2 per cent once GST kicks in.

Different for services

For the services sector, though, the tax burden will increase. Hence, organised players with the ability to hold their price-lines, or pass on any increase in cost to customers, will be able to maintain or improve profit margins.

We believe a simplified tax structure and a unified market will improve operational efficiencies, especially of MSMEs with a wider reach.

Then again, there was demonetisation. Last fiscal, MSMEs were expected to record on-year topline growth of 14 to 16 per cent.

However, the impact of demonetisation has been severe in the second half and they would have closed the year with an increase of just 6 to 8 per cent.

But as the effects of demonetisation fade, growth will pick up in the current fiscal.

Given all this, what are Crisil SME Ratings’ outlook on key sectors after GST is promulgated?

A peep into outlook

Positive for light engineering: Light engineering MSMEs rated by Crisil saw 15 per cent compound annual growth rate in topline between fiscals 2014 and 2016, with demonetisation causing just a blip.

GST is expected to provide a boost to this segment because of lower tax incidence.

The Government’s thrust on ‘Make in India’ will also lead to continued investments, helping the sector maintain growth momentum.

Positive for electrical equipment: Sales in companies rated by Crisil grew way faster at about 23 per cent in fiscal 2016 compared with 16 per cent in 2015. The sector will benefit from lower freight costs and tax rates.

Though growth is expected to be strong this fiscal, cheaper imports, especially from China, remain a challenge.

Neutral for pharmaceuticals: Sales in companies rated by Crisil grew 11 per cent in fiscal 2016 compared with 15 per cent in 2015.

Demonetisation had a limited impact as the Government had allowed extended use of the banned ₹500 and ₹1,000 currency notes for purchasing medicines.

We do not foresee any significant difference in tax rates under GST. This fiscal, too, we expect similar growth.

Neutral for auto components: Between fiscals 2014 and 2016, sales by unorganised auto component makers rated by Crisil grew at 14 per cent annually compared with 7 per cent for their organised peers.

However, demonetisation led to a short-term drop in sales to original equipment manufacturers (OEMs), or vehicle makers.

This fiscal, OEM sales are expected to normalise. Organised players will benefit and record moderate growth given the thrust on digitisation and lower tax rates under GST.

Unorganised players catering mostly to the non-OEM replacement market will be forced to move into the organised domain.

Marginally negative for textiles: Sales growth in the textiles-related MSME segment had already declined from 15 per cent in fiscal 2015 to 8 per cent in 2016.

GST will have a marginally negative impact because of higher tax rates expected.

During Crisil’s interactions with clients, some of them raised concerns that a unified market would create more competition in an already crowded and price-sensitive arena with a large number of unorganised players.

Organised players dealing in branded apparel are expected to fare well, though.

The sector is expected to record below-par growth of 5 per cent or lower.

Marginally negative for leather and footwear sectors: Companies Crisil rates in this segment have seen muted growth and have borne the brunt of demonetisation. With competition, including from Chinese players being strong, the operating margin has fallen to as low as 6 per cent for organised players.

We do not expect GST rates to vary much from the current indirect tax rates. Crisil expects overall growth and margins of players to remain subdued this fiscal.

Article writer : R Vasudevan business head of CRISIL Ratings-SME
Road to GST: From mountain of paper bills to flood of electronic challans

Road to GST: From mountain of paper bills to flood of electronic challans

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Road to GST

Come July, the scheduled date for GST launch, even a cycle rickshaw puller may have to use his mobile phone to generate an electronic challan -an electronic way bill -to move a high-end TV or fridge from a warehouse to a store.

For that matter, a Eureka Forbes salesman too will have to generate an e-way bill since the value of spares and components in his bag usually exceeds Rs 50,000, the threshold beyond which a challan has to be generated, said tax experts.

Long used to ad-hoc functioning, businesses find this rule bewildering as moving a flagship Apple or Samsung phone will also require an electronic way bill.

“There are practical issues. Connectivity may be a problem when our trucks go to source milk or fruits and vegetables from farmers,” said Mother Dairy CFO Meghnad Mitra. Fresh bills will be needed when processed milk or fruits and vegetables move out from Mother Dairy units, but Mitra sees it as a lesser challenge.

What if a truck breaks down while shipping goods from, say, Ludhiana to a port? The transporter will need to generate a new challan for the replacement truck.

Courier companies face more complexity. An e-way bill will be needed to be generated whenever goods exceeding the threshold value are collected and moved from an office to their godown.

Another challan will be needed when the goods are loaded in an aircraft or truck. The process will be repeated on arrival in the destination city.

E-way bills are valid for a limited duration. For instance, the validity for distances less than 100km is only a day; beyond 1,000km, it increases to 15 days. A new challan is required if a truck exceeds the time slab for the distance.

“Our drivers will need training although I am not sure if they will still be able to do it,” said Kanpur-based Goldie, who claimed to represent an association of around 1,000 truckers.

Indian Foundation of Transport Research and Training’s S P Singh, however, says that the problem is overstated as 2.5 lakh transporters, ac counting for 95% goods traffic on road are well versed with computers and smartphones and in a position to carry out any e-way bill-like transaction. He, however, suggested that the limit could be raised from Rs 50,000.

Given the complications, many expect the implementation of e-way bills, which are meant to ease border checks and save time through machine-readable radio frequency identification tags, will be deferred. Earlier this month, revenue secretary Hasmukh Adhia also said the government will provide time to transporters to adjust to the new system.

 “The system of e-way bill is a major reform and will remove many complications. Initially, we will only observe the behaviour (of transporters). We will be flexible and won’t put penalties from the start,” he said at a conference.
Officials told TOI the government is reviewing the norms and various options are on the table, including restricting e-way bills initially to evasion-prone sectors or raising the threshold value above Rs 50,000.

Another option is to make e-way bills mandatory only for goods that attract GST, sparing exempted goods such as agricultural produce. “The industry has some concerns and we will look into them. A decision will be taken by a committee,” said a senior finance ministry official.

Source :TOI
How e-commerce firms will gain in the GST regime

How e-commerce firms will gain in the GST regime

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GST should end numerous hurdles that state governments put up against online retail firms, such as Amazon and Flipkart, to protect offline retailers and state revenue.

Goods and Services Tax (GST), being a ‘destination-based tax on consumption’, is also set to address concerns of state governments that the business models of e-commerce firms erode their tax base.

E-commerce

E-commerce companies such as Amazon Seller Services Pvt. Ltd and Flipkart Ltd are set to be among the winners in the transition to a single national market which will be created by the proposed goods and service tax (GST).

GST should put an end to the numerous hurdles state administrations have been erecting amid complaints that online sales, and the hefty discounts they come with, are eroding the sales and profitability of physical retailers as well as state revenues.

It will mean a shift from the current model of taxing inter-state transactions, where the manufacturing state gets the proceeds of a 2% central sales tax on goods sold in other states. This will make way for a system in which the consuming state will get proceeds of taxes on interstate supply of goods. The integrated GST, which applies to inter-state supplies, has central and state components of roughly equal measure.

“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. Flipkart did not immediately respond to a request for comment.

GST, being a ‘destination-based tax on consumption’, is also set to address concerns of state governments that the business models of e-commerce firms erode their tax base.

Getting hassle-free access to markets across the country will benefit the e-commerce sector which, according to a January 2017 report by industry lobby group Associated Chambers of Commerce and Industry of India, is expected to touch $17.52 billion in turnover by the end of 2018.

E-commerce firms achieve efficiency by building warehouses in a few states where merchandise is stored for selling to consumers across the country. These companies typically offer the service of an online marketplace, and in some cases a warehousing facility to vendors, and pay service tax to the central government on any fee or margin received for that. The liability of value-added tax (VAT) to be paid to the state government at the business-to-consumer level is on the vendor.

The Karnataka government had in 2015 asked e-commerce firms to take the responsibility of paying VAT for the sales made by third-party vendors on their platform, leading to litigation between the state and firms such as Amazon.

Experts said that e-commerce firms being asked to provide details of sales by vendors on their platforms was fair, but holding them liable for VAT payment was not.

E-tailers work on thin margins of 3-4%. If they are forced to pay VAT at 14.5% on the product’s value, it won’t work, said an expert who asked not to be named.

“In the GST regime, the vendor has to pay GST and instances of holding e-commerce companies responsible for vendors’ tax payment will come down. In general, GST introduction is good for e-commerce companies as GST is a destination-based tax on consumption, unlike central sales tax on inter-state sale of goods which is origin-based,” said Pratik Jain, leader, indirect tax, PricewaterhouseCoopers India.

Online retailers face one potential irritant in GST—a 1% tax collected at source from vendors and paid to the government. “Vendors will get full tax credit on this 1% tax, but it could cause administrative inconvenience to e-commerce firms when products are returned by the consumer,” said R. Muralidharan, senior director, Deloitte in India.

Source : LiveMint