As per the announcement made by the GST council earlier, all the e-commerce companies are supposed to pay the TCS(Tax collected at source) from 1st October.
The Software vendor for Goods and Services Tax Network (GSTN), Infosys, has been asked by Sushil Kumar Modi, the Chairman of the Group of Ministers, to design New return filing forms for traders. This move has been taken in order to simplify the Return filing process through Network for the Traders. Sushil Kumar Modi, who was in the 10th GoM (media player for Windows) meeting for the review of the network working, informed that Infosys has been directed according to the suggestions by the GST council, to design new forms on Network which could simplify the return filing process for the traders.
Bihar’s Deputy Chief Minister, Sushil Kumar Modi said that it is to benefit the dealers or traders. In this context, a New and simplified GST return form is to be launched in the coming 4-6 months for the Dealers or Traders who are supposed to pay indirect taxes through the network. 18 companies across the country have been identified by the GoM to develop a uniform accounting software for small taxpayers. To maintain a uniformity in filing the GST returns, the New software would be provided to the Small Traders, he said.
According to the instruction from the GST council earlier, all the e-commerce companies are supposed to pay the TDS and TCS from October 1st. This has also been notified by the Union Government on 13th September under the Central GST Act, section 52. Also, the e-commerce companies are supposed to deduct up to 1 percent state GST and 1 percent central GST on intra-state supplies of over Rs 250,000 and 2% of the integrated GST in the case of inter-state supplies. The implementation of TDS and TCS had earlier been paused as some e-commerce players like Amazon, Flipkart and Myntra showed their concern on burdening of compliance.
Modi said that the Revenue collection has shown improvement after the rules and procedures are reformed and the revenue deficit has been reduced to 13 percent from 17 percent. He expressed his hope that the combined revenue will soon touch Rs 1.3 trillion per month with stakeholders showing more compliance. Networking in Tax collection is being profitable in checking Tax Evasion and warning dealers for ‘Creating Fake invoices’.