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GSTN registrations set to open for ecommerce vendors
Ecommerce companies such as Amazon, Flipkart and Swiggy concerned about losing business after the rollout of the goods and services tax (GST) on July 1 shouldn’t have to worry about being forced to exclude products sold by unregistered vendors in company formations services.
GST, which the government intends to roll out from July 1, 2017, will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services. The Central GST (CGST) bill -- one of the four legislations introduced, company incorporation in India states that any lease, tenancy, easement, licence to occupy land will be considered as supply of service. Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST bill.
“Registration for first-time taxpayers will open.
All vendors on ecommerce platforms have to be registered on the GST Network.
That’s because online market platforms have to mandatorily collect tax on any payment they make to a supplier in business registration in Gurgaon.
The marketplaces have been grappling with the matter as a substantial number of vendors fall below the tax threshold and hence aren’t registered with the tax authorities of either the states or the Centre. Many of these are small businesses, some even operating from home.