Amazon, Flipkart, Snapdeal Join Hands To Lobby Against Draft Model GST Law
The founders and top officials of India's e-commerce companies like Amazon, Flipkart and Snapdeal have come together to seek changes in the draft model GST law. These companies are worried about rules related to TCS, or tax collection at source, a provision in the Goods and Services Tax.
"E- commerce is the confluence of digital India, Start-up India and Make in India. TCS will be an impediment," said Kunal Bahl, CEO of Snapdeal.
Officials of the e-commerce companies say a thorough impact analysis of this tax provision on the online marketplaces had not been carried out diligently. Now, with the draft model GST law due to be finalised at the end of this month, the urgency is apparent.
Ironically, when the GST was passed by the Parliament, it was cheered by India's start up biggies.
#GSTBill will not only unlock huge productivity but also create millions of formal sector jobs - #repost https://t.co/viPt9orDtz Sachin Bansal (@_sachinbansal) 3 August 2016
Welcome passage of #GSTBill! Digital commerce removed geographical barriers, GST will remove tax barriers. One India means faster growth. Kunal Bahl (@1kunalbahl) 3 August 2016
But now, they have joined hands with banks, sellers and small & medium enterprises asking for amendments in the model GST law, as in its present form the regulations will do more harm than good to the industry. But whether this pressure group succeeds, remains the big question.