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. 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 firms achieve efficiency by building warehouses in a few states where merchandise is stored for selling to consumers across the country. 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. “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.

Source: Mint May 17, 2017 02:15 UTC