GST And E-Commerce: Compliance, Challenges And Legal Issues

Introduction

The goods and service tax ('GST') is a comprehensive, multi-stage, destination-based tax levied on every value addition throughout the economic supply chain. It consolidates various indirect taxes previously imposed by central and state governments, such as excise duty, service tax, and value-added tax ('VAT'), into aunified system. This unification simplifies the tax structure and eases compliance for businesses. GST is imposed at each stage of the production and distribution process—from the manufacturer to the consumer—ensuring that tax is collected at every point of sale. As a destination-based tax, GST is applied where goods or services are consumed rather than where they are produced. This approach helps eliminate the cascading effect of taxes, leading to a more transparent and efficient tax system.