Ecommerce Companies Require Registration For GST In All States

 The setting up of ecommerce platforms has facilitated the provision of goods and services at the click of a button. The supply of goods and services creates an event taxable under the Goods and Services Tax (hereinafter referred to as "GST") laws. The unified taxation systems help to eradicate the cascading effect and create a transparent system avoiding tax evasion.

Tax obligations for E-commerce players

The Government has made the following provisions of the Act effective from October 1, 2018, vide notifications dated September 13, 2018, with the aim to prevent tax evasion:

• Tax Deducted at Source (hereinafter referred to as "TDS")¹ at the rate of 1% from the payment made or credited to the supplier of taxable goods or services or both, where the total value of such supply, under a contract, exceeds INR 250,000 (USD 3475 approx.). [Section 51(1) of the Central GST Act, 2017].